The National Police Are Investigating Allegations Of Money Laundering In Corruption Cases In The PLTU 1 West Kalimantan Project

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JAKARTA - The Corruption Eradication Corps (Kortastipidkor) of the National Police is investigating the alleged crime of money laundering (TPPU) in the alleged corruption case of the West Kalimantan 1 Steam Power Plant (PLTU) construction project.

"We will later release it again regarding the party we will determine (the suspect), then coated with the money laundering offense article," said Head of Kortastipidkor Polri Inspector General Cahyono Wibowo as quoted by ANTARA, Monday, October 6.

He said that in the PLTU 1 West Kalimantan construction project carried out by KSO PT BRN, the work was handed over to PT Praba Indopersada (PI).

This diversion, he said, resulted in the emergence of several other problems.

"From PT Praba, this is a problem. Actually, from the start it was like that. So, the peak is PT Praba where the tools sent are also theunder specification (not according to specifications) so this also results in a very complex problem (development) stalled," he said.

In addition, he added, there was also a problem with China's workers working on this PLTU project without a work permit so they had to be deported.

Cahyono said investigators were investigating the assets and funds of the parties suspected of being involved. The total assets are estimated to reach tens of billions.

From the results of our search, there are several parties who have received the flow of funds. To explore and perfect it, we also need some evidence. Maybe we will release it in the future," he said.

Meanwhile, the Director of Enforcement of Kortastipidkor Polri Brigadier General Totok Suharyanto revealed that investigators have named four suspects in the alleged corruption case in the construction of PLTU 1 West Kalimantan, namely FM as the former director of a state-owned electricity company, HK as President Director of PT BRN, RR as President Director of PT BRN, and HYL as President Director of PT Praba Indopersada.

He explained that in this case, state-owned electricity companies in 2008 held an auction for the construction of the West Kalimantan PLTU 1 in Jungkat District, Mempawah Regency, West Kalimantan.

However, before the implementation, there was an agreement to win PT BRN.

In the auction, KSO BRN-Alton-OJSC has also been arranged to be passed and won even though it does not meet administrative and technical requirements.

"In addition, it is strongly suspected that the Alton and OJSC companies are not members of the KSO formed and headed by PT BRN," said Totok.

Then, in 2009, before the signing of the contract, KSO BRN transferred all construction work to PT Praba Indopersada, including the control of the KSO BRN account, with an agreement to reward PT BRN.

Furthermore, suspect HYL was given the right to be the financial holder of KSO BRN.

"In this case, it is known that PT Praba also does not have the capacity to work on the PLTU project in West Kalimantan," said Totok.

Next, on June 11, 2009, the suspect FM as the director of the state-owned electricity company with suspect RR as the President Director of PT BRN signed a contract with a value of 80,848,341 US dollars and Rp507,424,168,000.00.

The contract's effective date starts December 28, 2009 with a term of completion until February 28, 2012.

At the end of the contract, KSO BRN and PT Praba Indopersada only completed 57 percent of the work. Until the 10th contract amendment ended on December 31, 2018, KSO BRN and PT Praba Indopersada were unable to complete the work or only reached 85.56 percent for reasons of financial inability.

"However, the fact is that the actual work has been stopped since 2016 with a work of 85.56 percent so that PT KSO BRN has received payments from state-owned electricity companies of Rp. 323 billion and US$62.4 million," he said.

The amount that has been paid has been determined as the value of state financial losses.