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Jakarta Post

Regent may have caused $415m in state losses by issuing mining permits: KPK

  • Gemma Holliani Cahya

    The Jakarta Post

Jakarta   /   Sat, February 2, 2019   /   02:00 pm
Regent may have caused $415m in state losses by issuing mining permits: KPK Corruption Eradication Commission (KPK) deputy chairman Laode Muhammad Syarif (right) speaks to the press in this file photo. (Antara/Hafidz Mubarak A.)

The Corruption Eradication Commission (KPK) has named East Kotawaringin Regent Supian Hadi a suspect of graft in a case that may have caused more than US$415 million in state losses.

Supian allegedly abused his authority when he issued business licenses from 2010 to 2012 to three mining companies that reportedly failed to meet legal requirements: PT Fajar Mentaya Abadi, PT Billy Indonesia and PT Aries Iron Mining.

“[Given the amount of state losses] this case is comparable to other cases handled by the KPK, such as the e-KTP and BLBI cases,” KPK commissioner Laode M. Syarif said on Friday, referring to a graft case around the multimillion-dollar procurement of electronic ID cards and another one pertaining to irregularities surrounding the disbursement of Bank Indonesia Liquidity Support (BLBI).

Supian has allegedly enriched himself and the companies and caused state losses amounting to Rp 5.8 trillion (US$415.7) and $711,000. The estimated losses were calculated based on the production of bauxite and environmental damage caused by mining activities. (hol/swd)