Jakarta – Indonesia’s Police Corruption Crime Corps (Kortastipidkor) has named two individuals as suspects in an alleged corruption case involving the Engineering, Procurement, Construction, and Commissioning (EPCC) project for the development and modernization of the Asembagoes Sugar Factory in Situbondo, East Java, owned by PTPN XI.
The two suspects are identified by their initials as DPP, the former President Director of PTPN XI for the 2015–2017 period, and TD, the President Director of PT Multinas Indonesia. Both were officially named suspects on July 2, 2026, after investigators concluded they had gathered sufficient evidence.
Head of Operations at Kortastipidkor, Senior Commissioner Ahmad Yusuf Afandi, said DPP allegedly manipulated the procurement process by allowing companies that failed to meet qualification requirements, directing the formation of a particular consortium, and inflating the Owner’s Cost Estimate (HPS) without adequate technical justification, ultimately benefiting certain parties.
Meanwhile, TD is alleged to have played a role in arranging the project’s winning bidder and carrying out work that did not comply with contractual obligations, including failing to provide the required performance guarantee, which prevented the commissioning process from being completed as intended.
The case stems from the modernization project of the Asembagoes Sugar Factory, which was carried out between 2016 and 2022 as part of efforts to increase Indonesia’s sugar production capacity and improve production quality. However, investigators found indications of irregularities from the planning and procurement stages through to project implementation.
According to an investigative audit conducted by Indonesia’s Supreme Audit Agency (BPK), the alleged corruption caused state losses of approximately Rp645.27 billion, mainly due to payments made for project outcomes that failed to meet the intended objectives.
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