Attorney General: State Losses Due To Corruption Of Krakatau Steel Reaches 6.9 Trillion

Attorney General ST Burhanuddin/PHOTO Puspenkum AGO

JAKARTA - Attorney General ST Burhanuddin said state losses due to corruption in the Blast Furnace Complex (BFC) project by PT Krakatau Steel in 2011 reached IDR 6.9 trillion.

"It is suspected that the state financial losses that have arisen amounted to IDR 6.9 trillion in accordance with the financing issued by the Himbara consortium," said Burhanuddin in a written statement Monday, July 18.

Attorney General Burhanuddin explained that in 2007 PT Krakatau Steel (KS) approved the procurement of the BFC factory with the winning contractors being the MCC CERI consortium and PT Krakatau Engineering which is a subsidiary of PT Krakatau Steel, but the procurement was carried out against the law.

"What should have been for MCC CERI to carry out the construction as well as the financing, but in reality, it was financed by a domestic consortium or himbara with the contract value for the construction of the BFC factory with an acceptance system in accordance with the initial contract of IDR 4.7 trillion until the 4th addendum swelled to IDR 6.9 trillion, said Burhanddin.

"Furthermore, the results of the current work cannot be utilized because it is not feasible and there is work that has not been completed," he continued.

The five suspects are FB as President Director of PT Krakatau Steel for the period 2007-2012, ASS as Deputy Director of Strategic Projects for PT Krakatau Steel for the period 2010-2012 (city prisoner), Ir. MR as Project Manager of PT Krakatau Engineering for the period 2013-2016, Ir. BP as the President Director of PT Krakatau Engineering for the period 2012-2015, and HW alias RH as the Head of the Blast Furnace Project Preparation and Implementation Team in 2011 and the General Manager of the PT. KS 2013-2019 period.

The suspects were charged with Article 2 paragraph (1) in conjunction with Article 18 of the Corruption Eradication Law.

The suspects were seen leaving the lobby of the Indonesian Attorney General's Roundabout building and entering the Indonesian Attorney General's detention car using pink vests at 16.14 western Indonesia time.