Top 9 Mega Corruption Scandals in Indonesia: Timah Case Involving Harvey & Helena Lim Still Ranked No. 1

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beritapekanbaru.com -Corruption has long been an entrenched issue in Indonesia, with numerous cases emerging over the years. Some corruption scandals have caused such colossal financial damage that they can be classified as mega corruption cases. Among them, the PT Timah Tbk corruption case, with state losses estimated at IDR 300 trillion, remains the largest in Indonesian history. Other major corruption scandals include PT ASABRI and PT Asuransi Jiwasraya, both of which also involve staggering amounts of misappropriated funds.

Recently, a significant development occurred in the PT Asuransi Jiwasraya corruption case, as Indonesia's Attorney General's Office (Kejagung) officially named Isa Rahmatawarta, Director General of Budget at the Ministry of Finance, as a suspect in the financial mismanagement and investment fund corruption scandal of PT Asuransi Jiwasraya.

"The individual in question currently serves as the Director General of Budget at the Ministry of Finance of Indonesia," said Abdul Qohar, Director of Investigation at Kejagung, during a press statement at the Attorney General's Office in Jakarta on Friday, February 7, 2025.

According to Qohar, Isa was found guilty of causing financial losses to the state through mismanagement of PT Asuransi Jiwasraya’s funds. Investigations revealed that the corruption caused a total financial loss of IDR 16.8 trillion.

In recent years, Indonesia's anti-corruption agencies, including the Corruption Eradication Commission (KPK) and Kejagung, have uncovered several large-scale corruption cases. Below are some of the most notorious corruption scandals that have inflicted trillions in state losses:

1. PT Timah Corruption Scandal

The Attorney General’s Office uncovered a massive corruption scheme in PT Timah’s commodity trading practices within its Mining Business License (IUP) area between 2015 and 2022.

A total of 21 individuals have been named as suspects, including former PT Timah Tbk CEOs Mochtar Riza Pahlevi Tabrani, "crazy rich" Helena Lim, and Harvey Moeis, the husband of Indonesian celebrity Sandra Dewi.

Initially, Kejagung estimated the environmental damage from this corruption case at IDR 271 trillion. However, after an audit by the Financial and Development Supervisory Agency (BPKP), the total state loss was revised to IDR 300 trillion, including the environmental damage caused.

2. Jiwasraya Corruption Scandal

The Jiwasraya corruption scandal began with financial statement manipulation, a practice dating back over a decade. In 2006, Jiwasraya’s financial report showed negative equity of IDR 3.29 trillion due to a significant asset-liability mismatch.

The Supreme Audit Agency (BPK) later issued a disclaimer opinion for Jiwasraya’s 2006 and 2007 financial reports due to unreliable reserve disclosures. By 2015, Indonesia’s Financial Services Authority (OJK) conducted a direct examination of Jiwasraya’s investment and insurance management, revealing overstated financial assets and understated liabilities.

A total of 13 corporate entities were indicted in the corruption case, with several high-profile individuals sentenced to lengthy prison terms:

• Piter Rasiman: 20 years in prison, IDR 1 billion fine

• Heru Hidayat & Benny Tjokrosaputro: Life imprisonment

• Hendrisman Rahim, Hary Prasetyo, and Joko Hartono Tirto: 20 years in prison

• Syahwirman: 18 years in prison

The most recent development in this case is the indictment of Isa Rahmatawarta, accused of causing IDR 16.8 trillion in financial losses to the state.

3. ASABRI Corruption Scandal

The ASABRI corruption case, one of the most damaging financial crimes in Indonesia, resulted in an estimated IDR 22 trillion in state losses. While separate from the Jiwasraya scandal, investigations revealed common perpetrators, such as:

• Benny Tjokrosaputro, CEO of PT Hanson International Tbk

• Heru Hidayat, President Commissioner of PT Trada Alam Minera Tbk

Attorney General ST Burhanuddin expressed frustration over the lack of severe sentencing for Heru Hidayat, despite ASABRI’s financial losses reaching IDR 22 trillion.

4. MBZ Elevated Toll Road Corruption

The MBZ elevated toll road corruption case caused state losses of approximately IDR 1.5 trillion. Recent findings indicate illegal collusion in contract bidding, favoring specific parties and leading to further financial damages totaling IDR 13.5 trillion.

Four suspects were indicted in this case, including Djoko Dwiyono, former CEO of PT Jasamarga Jalan Layang Cikampek (JJC). The suspects were charged under Indonesia’s Anti-Corruption Law.

5. BTS 4G Infrastructure Corruption

The corruption in Indonesia’s BTS 4G infrastructure project resulted in losses of approximately IDR 8 trillion from a total project budget of IDR 10 trillion. The scandal implicated 16 individuals, including:

• Johnny G. Plate, former Minister of Communications and Informatics

• Anang Latif, CEO of BAKTI

Investigations revealed that of the planned 4,200 BTS towers, only 958 were built, despite substantial government funding.

6. BLBI Scandal

The Bank Indonesia Liquidity Assistance (BLBI) scandal dates back to the 1997 Asian Financial Crisis. The Indonesian government allocated IDR 147.7 trillion in emergency funds to rescue 48 banks. However, most debtors defaulted on their repayments.

A 2000 audit by the Supreme Audit Agency (BPK) estimated state losses at IDR 138.4 trillion. In 2021, President Joko Widodo formed a special task force to recover the stolen funds.

7. Palm Oil Land Grabbing Scandal

A joint investigation by the KPK and BPKP uncovered unauthorized land acquisitions by Duta Palma Group, leading to IDR 104.1 trillion in state losses. The scandal involved Surya Darmadi, sentenced to 15 years in prison, and Raja Thamsir Rachman, a former regent of Indragiri Hulu, who received a nine-year sentence.

8. Illegal Condensate Refining in Tuban

This scandal involved illegal crude oil sales from 2009 to 2011, causing losses of USD 2.7 billion (IDR 35 trillion at the time). It implicated PT Trans-Pacific Petrochemical Indotama (TPPI) executives and former BP Migas officials, including:

• Honggo Wendratno, former CEO of PT TPPI

• Raden Priyono, former BP Migas Head

• Djoko Harsono, former Deputy of BP Migas

Honggo Wendratno was sentenced to 16 years in prison but remains a fugitive.

9. Bank Century Bailout Scandal

This scandal involved a IDR 6.7 trillion bailout from Indonesia’s Deposit Insurance Corporation (LPS) in 2008. Key figures convicted include:

• Budi Mulya, former Deputy Governor of Bank Indonesia, sentenced to 15 years

• Robert Tantular, Bank Century’s majority shareholder, initially sentenced to 21 years but released after 10 years

These cases highlight the persistence of corruption in Indonesia, emphasizing the need for stringent enforcement and stronger accountability to prevent future financial disasters.