East Kalimantan High Prosecutor's Office Names Seven Defendants in Rp6.8 Trillion State Asset Corruption Case

The East Kalimantan High Prosecutor’s Office (Kejati Kaltim) has named seven individuals as defendants in a corruption case concerning the utilisation of state-owned assets (BMN) under the Ministry of Transmigration in Kutai Kartanegara Regency, with state losses estimated at over Rp6.8 trillion. Assistant for Special Crimes Gusti Hamdani stated that the public prosecutor’s team has transferred the case files and evidence to the Corruption Court at the Samarinda District Court. The corruption relates to state revenue from the use of BMN for mining activities by the PT JMB Group between 2007 and 2012. The seven defendants include four former heads of the Kutai Kartanegara Mining and Energy Agency: HM (2005-2008), BH (March 2009-September 2010), HA (October 2010-May 2011), and AD (2011-2014). The three private sector defendants are BT, a director of PT JMB and PT KRA since 2006 and 2007 respectively; GT, president director of PT JMB, PT KRA, and PT ABE from 2007 to 2014; and DA, who held director positions at the same three companies during the same period. The case originated from the use of state assets for mining by private parties without proper cooperation mechanisms, causing state losses. An audit by the BPKP representative office in East Kalimantan confirmed the financial loss to the state exceeded Rp6.8 trillion. Prosecutors have received Rp699.7 billion in restitution payments and seized assets including foreign currency, luxury vehicles, jewellery, branded bags, and land parcels. The defendants face charges under the Corruption Eradication Act, and investigators have not ruled out the possibility of additional suspects.