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KPK quizzes Sumitomo GM in train markup case

The Corruption Eradication Commission (KPK) questioned the general manager of PT Sumitomo, Hideyuki Nishio, in its investigation into an Rp 11 billion markup case in connection with the transportation of used rail wagons from Japan to Indonesia in 2006 and 2007

Irawaty Wardany (The Jakarta Post)
Jakarta
Fri, January 22, 2010

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KPK quizzes Sumitomo GM  in train markup case

T

he Corruption Eradication Commission (KPK) questioned the general manager of PT Sumitomo, Hideyuki Nishio, in its investigation into an Rp 11 billion markup case in connection with the transportation of used rail wagons from Japan to Indonesia in 2006 and 2007.

“He was questioned as a witness in the case of suspect Soemino Eko Saputro, the former director general for railway affairs at the Transportation Ministry,” KPK spokesman Johan Budi told The Jakarta Post on Thursday.

Asked about the line of questioning, Johan said, “We need to hear his testimony regarding the price
of delivering the commuter train cars.”

Soemino has been declared a suspect in the alleged Rp 11 billion mark-up in the delivery cost of the train cars, which reached Rp 48 billion.

Apart from Hideyuki, the commission has also questioned Soemino’s replacement, Wendi Aritenang, and an official from the National Development Planning Agency (Bappenas).

Previously, Johan said the KPK would likely question Coordinating Economic Minister Hatta Rajasa because the case occurred when he was transportation minister.

The Japanese government granted the used cars to Indonesia since Japanese environmental regulations prohibited the use of the refrigerant Freon in air-conditioned public transport.

In 2000, state-owned train company PT Kereta Api Indonesia (PT KAI) received 16 used rail wagons from the Tokyo Metropolitan government with the delivery cost covered by the Indonesian government. The total value of the donation was 4.32 billion.

The Indonesian government received a loan from Japan’s Overseas Economic Cooperation Fund (OECF) to pay the delivery cost.

In the same year, PT KAI also received the first batch of 24 used train cars manufactured by Hitachi, Nihon Sharyo and Alna Kouki.

In 2006, 22 used train cars from Japan arrived in Indonesia and at the end of 2008, 20 of 160 pledged by the Japanese government were received by the Indonesian government.

The KPK also detained the former director of general affairs and human resources development at state-owned gas distribution company PT Perusahaan Gas Negara (PGN), Joko Pramono, for his alleged involvement in a graft case at the company.

“Joko was held for 20 days at the Jakarta Police detention center,” said Johan.

Joko is accused of collecting Rp 3.6 billion in illegal levies from contractors of gas network construction projects and of paying Rp 1.6 billion in bribes to a number of members from the House of Representatives in 2003 in exchange for their endorsement of the company’s initial public offering (IPO) at the Jakarta Stock Exchange.

So far, legislators have been questioned in relation to the allegations.

Former PGN general manager Washington Mampe Parulian Simanjuntak stood trial recently for his alleged involvement in the graft case.

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