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Jakarta Post

AGO stops investigation into Grand Indonesia's alleged state losses

  • News Desk

    The Jakarta Post

Jakarta   /   Sat, January 21, 2017   /  06:20 pm
AGO stops investigation into Grand Indonesia's alleged state losses Cars pass through the iconic Hotel Indonesia traffic circle in the heart of Jakarta on Feb. 24. The Attorney General's Office (AGO) has decided to upgrade its investigation regarding a contract between state-owned PT Hotel Indonesia Natour and PT Grand Indonesia. (JP/Wienda Parwitasari)

The Attorney General's Office announced Friday it stopped the investigation into alleged graft in a contract between a state-owned enterprise and Grand Indonesia complex near Hotel Indonesia traffic circle in Jakarta.

“Ask the Supreme Audit [BPK], don’t ask us. They were the ones who said [there was the potential for state losses]. We concluded that it was only a violation of civil law,” Attorney General H. M. Prasetyo said as quoted by Antara news agency on Friday.

He said his office concluded the case was not a corruption crime and therefore he handed over the follow-up to the State-Owned Enterprises (SOE) Ministry. He said the ministry could file a civil lawsuit to revise the contract.

“We have sent the ministry a letter; we said if the contract was not settled properly, there was a potential for state losses,” Prasetyo went on.

(Read also: Natour-Grand Indonesia deal could case state losses: BPK)

The case related to the management of state land, on which Grand Indonesia shopping center, Hotel Indonesia Kempinsky and BCA building stand. 

The state entrusted the land to state-owned enterprise PT Hotel Indonesia Natour, which in 2002 signed a contract with PT Cipta Karya Bumi Indah to build on the land under the “build-operate-transfer” scheme, signed in 2004.

The contract said the agreement covered Grand Indonesia mall and the hotel. But Cipta, through its subsidiary PT Grand Indonesia, subcontracted the land to build Bank Central Asia (BCA) building and Kempinsky Apartment.

Both now have assets on the state land and they are not included in the build-operate-transfer agreement. (evi)

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