Workers are busy at the herbal medicine factory of PT Indofarma in Cikarang Barat, West Java, on Friday, Feb. 21, 2020. (B-Universe)

JakartaGlobe-May 24, 2024

Several state-owned enterprises (SOEs) are currently under investigation as two law enforcement agencies probe allegations of corruption. The Corruption Eradication Commission (KPK) is looking into suspected fictitious procurement at telecommunications giant Telkom Group. The alleged corruption is believed to have led to financial losses amounting to hundreds of billions of rupiah for the state. Meanwhile, the Attorney General’s Office (AGO) is investigating fraud allegations at pharmaceutical company Indofarma and pension fund Taspen. “Currently, the KPK is gathering evidence to uncover allegations of corruption in the procurement of goods and services at Telkom Group,” stated KPK spokesman Ali Fikri at the KPK headquarters in Jakarta on Tuesday. “This procurement is suspected to be fictitious, involving the unlawful expenditure of state funds, with preliminary estimates reaching hundreds of billions of rupiah,” Fikri continued. While the KPK has named several individuals as suspects in this case, their identities and case details have not been officially disclosed. Meanwhile, Telkom, a publicly-listed company, has expressed respect and support for the ongoing efforts to address the alleged corruption. The AGO is also gearing up to investigate irregularities (fraud) at Indofarma, with initial findings provided by the Supreme Audit Agency (BPK). The BPK uncovered indications of criminal actions by related parties in Indofarma’s financial management, leading to an indication of state losses totaling Rp 371.83 billion. Read more at: https://jakartaglobe.id/news/stateowned-enterprises-under-scrutiny-for-corruption-allegations