Jakarta – Indonesian authorities have detained a Ministry of Transportation official and a private citizen in connection with a corruption scheme involving the construction of a railway line in the Medan area, signaling a renewed push against infrastructure-related graft. The case, announced Monday by the Corruption Eradication Commission (KPK), centers on allegations of manipulated contracts and illicit payments totaling millions of rupiah. The examination highlights ongoing concerns about transparency and accountability in Indonesia’s significant infrastructure development projects.
Indonesia’s Corruption Eradication Commission (KPK) has detained two suspects in connection with an alleged corruption scheme involving the construction of a railway line in the Medan area. The suspects include a Ministry of Transportation official and a private citizen, authorities announced Monday.
Muhlis Hanggani Capah (MHC), a civil servant with the Directorate General of Railways at the Ministry of Transportation, served as the Project Implementation Unit Head in Medan from 2021 to 2024. The other suspect, Eddy Kurniawan Winarto (EKW), represents the private sector.
According to Asep Guntur Rahayu, the Acting Deputy for Investigation and Execution at the KPK, the case centers around alleged manipulation of contracts related to the railway project.
“Muhlis engaged in practices to influence the awarding of work packages within his authority as the Project Implementation Unit Head, specifically the construction of the Medan Emplacement and Station Buildings Phase II (JLKAMB),” Asep stated during a press conference at the KPK building in South Jakarta.
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Asep explained that Muhlis coordinated with the work package team and utilized tactics described as “assistance” at various locations, both before and during the bidding process for the railway project.
Muhlis allegedly acted as an intermediary for Harno Trimadi, a previously named suspect who served as the director of infrastructure. Asep said Muhlis provided guidance to the work package team leader, including a list of preferred bidders during the tender process.
In late 2021, a meeting described as an “assistance” session was held at a hotel in the Bandung area. Asep stated that representatives from potential winning bidders – PT Waskita Karya, PT Istana Putra Agung (IPA), and PT Antaraksa – attended the meeting.
Officials from the Ministry of Transportation were also present to review the qualification documents submitted by the prospective bidders. “The meeting focused on the company qualification documents that would be included in the bid proposals,” Asep said.
According to records from PT Istana Putra Agung, the company made payments totaling Rp 1.1 billion (approximately $70,000 USD) for Muhlis’s benefit and Rp 11.23 billion (approximately $715,000 USD) for Eddy. Payments to Muhlis were made in 2022 and 2023 through both bank transfers and cash, while Eddy received funds via bank transfer between September and October 2022.
“Dion Renato Sugiarto (DRS), the Director of PT IPA, and other contractors had concerns about not winning the project bids and therefore provided these fees to MHC,” Asep explained.
Dion Renato Sugiarto also allegedly provided funds to Eddy due to his authority over the bidding process, his oversight of contract management, and his involvement in financial audits.
“And his close ties to officials within the Ministry of Transportation,” Asep added.
The KPK is investigating the alleged close relationships between Eddy Kurniawan Winarto and officials at the Ministry of Transportation, seeking to determine the level of those connections.
“We are currently investigating the extent of Mr. EKW’s connections to structural officials within the Ministry of Transportation – whether it reaches the level of echelon 1, echelon 2, or even top management,” Asep stated.
Authorities are continuing to investigate these relationships and trace the flow of the Rp 11.23 billion paid to Eddy.
“We are also tracing the source of the funds. This is a significant amount, while the payment to the PPK, Mr. MHC, was only Rp 1.2 billion,” Asep noted.
Both suspects are charged under Article 12 letters a or b, or Article 11 of Law Number 31 of 1999 concerning the Eradication of Criminal Acts of Corruption, as amended by Law Number 20 of 2001, in conjunction with Article 55 paragraph (1) to -1 of the Criminal Code.
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