Former Krakatau Steel President Director Fazwar Bujang Becomes A Corruption Suspect For The Blast Furnace Factory Project

JAKARTA - The Attorney General's Office has named five suspects in the alleged corruption case of the blast furnace (BFC) factory construction project by PT Krakatau Steel (Persero) in 2011.

One of the five suspects, namely, Director of PT Krakatau Steel for the period 2007-2012 Fazwar Bujang.

Meanwhile, the other four suspects are President Director of PT Krakatau Engineering for the period 2005-2010 Andi Soko Setiabudi and Deputy Director for Strategic Projects 2010-2015, and Bambang Purnomo as President Director of PT Krakatau Engineering for the period 2012-2015.

Then, Hermanto Wiryomijoyo alias Raden Hernanto as the Head of the Blast Furnace Project Preparation and Implementation Team in 2011 and General Manager of the PT KS Project for the period from July 2013 to August 2019, and Muhammad Reza as Project Manager of PT Krakatau Engineering for the 2013-2016 period.

The five suspects are subject to Article 2 paragraph (1) in conjunction with Article 18 of Law of the Republic of Indonesia Number 31 of 1999 as amended and supplemented by Law Number 20 of 2001 in conjunction with Law of the Republic of Indonesia Number 31 of 1999 concerning Amendments to Law of the Republic of Indonesia Number 31 of 1999 concerning Eradication of Criminal Acts of Corruption in conjunction with Article 55 paragraph (1) of the 1st Criminal Code.

The head of the Legal Information Center (Kapuspenkum) Ketut Sumedana said the four suspects were detained at the Salemba Class I Detention Center (Rutan) from July 18 to the next 20 days.

Meanwhile, Fazwar Bujang will be in city custody for the next 20 days.

"To speed up the investigation process, five suspects have been detained," he said in an official statement, Monday, July 18.

Prior to the detention, said Ketut, the five suspects had been subjected to health checks and antigen swabs with negative results for COVID-19.

Ketut said, in 2011-2019 PT. Krakatau Steel (Persero) procured the construction of the Blast Furnace Complex Factory, which is a factory that carries out the production process of hot metal using coal (coke) fuel with the aim of advancing the national steel industry with lower production costs because it uses raw materials. gas fuel, the production cost is more expensive.

"The board of directors of PT Krakatau Steel (Persero) in 2007 approved the procurement of the construction of a BFC factory using coal fuel with a capacity of 1.2 million tons per year of hot metal," said Ketut.

According to Ketut, the contract value for the construction of the PT KS Blast Furnace Factory with a turnkey system (accept so) is in accordance with the initial contract of IDR 4.7 trillion until the 4th addendum swelled to IDR 6.9 trillion.

The winning contractor and the executor, MCC CERI, is in a consortium with PT Krakatau Engineering.

"In the implementation of planning, tenders/auctions, contracts, and implementation of development, there have been deviations. The results of BFC's work are currently stalled because they are not feasible and cannot be utilized and there is work that has not been completed. Consequently, it is allegedly causing state loss IDR 6,9 trillion contract value," he explained.

In this case, added Ketut, 119 witnesses have been examined.

In addition, documents related to BFC project planning, BFC project procurement, BFC project implementation, payments to vendors, syndicated bank financing, and other related documents have also been confiscated.

"Meanwhile, searches were carried out at the offices of PT Krakatau Steel in Cilegon Banten and PT Krakatau Engineering," he said.

Ketut explained that the investigative team had also requested information from State Finance Experts, Government Goods/Services Procurement Policy Institute Experts (LKPP), Metallurgy, Iron and Steel Making Experts, Blast Furnace Process Experts, Blast Furnace Experts, as well as Civil Engineering and Construction Management Experts.

In addition, there is evidence of letters/documents related to planning and implementation related to the BFC project.