Aseng, Bauxite Mining Boss, Entangled in IUP Corruption Case in West Kalimantan

The Indonesian Attorney General’s Office (Kejaksaan Agung) has named Sudianto (SDT) alias Aseng, the beneficial owner of PT Quality Sukses Sejahtera (QSS), as a suspect in a corruption case involving irregular governance of Mining Business Permits (IUP) in West Kalimantan from 2017 to 2025. In 2017, Sudianto allegedly acquired PT QSS, which held an IUP Exploitation under Governor of West Kalimantan Decree Number 210/DISTAMBEN/2016 dated 7 April 2016. In 2018, without proper due diligence and using data that were not accurate, PT QSS conducted mining activities. PT QSS allegedly did not meet the requirements to obtain an IUP Production Operation as per Head of the Provincial Investment and One-Stop Service Office (DPMPTSP Kalbar) Decree Number 503/136/MINERBA/DPMPTSP-C.II/2018 dated 12 December 2018, yet it still obtained an IUP Production Operation with a Work Plan and Budget (RKAB) covering an area of 4,084 hectares, conflicting with Article 34(4) of Government Regulation 23 of 2010. Furthermore, after obtaining the IUP Production Operation, PT QSS did not conduct mining activities within the IUP area, but continued selling bauxite sourced outside the IUP area using PT QSS documents in contravention of the law. Syarief Sulaeman Nahdi, Director of Investigations for the Deputy Attorney General for Special Crimes, stated that the production results from the bauxite were sold from 2020 to 2024 with export approval documents issued without proper verification in collusion with state actors. It was also revealed that PT QSS did not own a smelter, which is one of the prerequisites for export licensing. The actions of the accused SDT have caused financial losses to the state. For his actions, Sudianto is charged under Article 603 in conjunction with Article 20(a) or (c) of the Criminal Code, in conjunction with Article 18 of Law Number 31 of 1999 on the Eradication of Corruption, as amended by Law Number 20 of 2001, and in conjunction with Article 618 in conjunction with Article 20(a) or (c) of the Criminal Code. Aseng is currently detained at Salemba Detention Center, Jakarta Selatan for 20 days.