New Chapter in Krakatau Steel Corruption Case
The Attorney General's Office has named five suspects for alleged corruption in the construction of the blast furnace factory of PT Krakatau Steel Tbk (KRAS) in 2011. One of them is the 2007-2012 Krakatau Steel director Fazwar Bujang. "The directors of Krakatau Steel in 2007 approved the construction of a coal-fired blast furnace factory with a hot metal production capacity of 1.2 million tons per year," Ketut Sumedana, Attorney General's Office's spokesperson, elaborated on Monday.
Ketut said Fazwar was accused of violating Article 2 paragraph 1 in conjunction with Article 18 of the anti-corruption law. Fazwar and other suspects are being held at the Class 1 Detention Center in Central Jakarta for the next 20 days. "To speed up the investigation process, these five suspects have been detained," he said.
The other four suspects are:
- Deputy Director of Strategic Projects for Krakatau Steel in 2010-2015: Andi Soko Setiabudi
- President Director of PT Krakatau Engineering in 2012-2015: Bambang Purnomo
- Head of the 2011 Blast Furnace Project Preparation and Implementation Team: Hernanto Wiryomijoyo
- Project Manager of PT Krakatau Engineering in 2013-2016: Muhammad Reza.
SOE Minister Erick Thohir appreciated the office's response to the corruption case in the Krakatau Steel blast furnace construction project. He considered the revelation as part of improving the governance of SOEs. Meanwhile, KRAS president director Silmy Karim stated that the company respects the legal process and assured it would not interfere with its operational activities.