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View all search resultsN. Sumatra prosecutor detains two Inalum execs for alleged graft
The two executives of the state-owned aluminum smelting company are suspects in graft case involving the sales of aluminium alloy in 2019, estimated to have caused $8 million in losses to the state.
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An employee checks aluminum bars on Nov. 1, 2019, at a factory of PT Indonesia Asahan Aluminium (Inalum) in Batu Bara, North Sumatra. (JP/Apriadi Gunawan)
T
he North Sumatra Prosecutor’s Office has detained two executives from PT Indonesia Aluminium (Inalum) for alleged corruption in aluminum alloy sales to PT Prima Alloy Steel Universal (PASU) in 2019, which incurred an estimated US$8 million in state losses.
The two, who have been identified by their initials as DS, senior executive vice president of business development, and JS, head of sales and marketing, have been held at the Tanjung Gusta Penitentiary since Wednesday for a period of 20 days.
Indra Hasibuan, head of legal information at the prosecutor’s office, said the pair was detained over potential risks including flight, destruction of evidence and repeat offense.
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“They were detained after investigators declared them as suspects [...] based on two pieces of evidence” indicating that the payment scheme for the 2019 alloy sales had been changed, Indra said on Wednesday.
The original deal involved a cash payment with a domestic letter of credit (SKBDN), which was changed to a document against acceptance (D/A) with a time limit of 180 days. Under this scheme, PASU did not pay for the aluminum alloy that Inalum had shipped.
“The action caused state losses of an estimated $8 million. The actual value is still being calculated,” Indra said.
