Indonesian Political, Business & Finance News

Former Village Head in Central Sulawesi Detained Over Mining CSR Fund Corruption Worth Rp9.6 Billion

| Source: CNN_ID Translated from Indonesian | Legal
Former Village Head in Central Sulawesi Detained Over Mining CSR Fund Corruption Worth Rp9.6 Billion
Image: CNN_ID

The High Prosecutors’ Office (Kejati) in Central Sulawesi has designated Ahlis Umar, the former Village Head of Tamainusi, North Morowali District, as a suspect in an alleged corruption case involving the embezzlement of Corporate Social Responsibility (CSR) and mining compensation funds from 2021 to 2024, causing state losses of Rp9.6 billion.

“The designation of the suspect was carried out on Thursday, 12 March 2026, after investigators obtained two pieces of valid evidence,” said Laode Sopyan, Head of Legal Communications at Kejati Central Sulawesi, in a statement on Friday (13/3).

Laode explained that during his tenure as Village Head of Tamainusi from 2021 to 2024, the suspect received CSR and compensation funds from several mining companies including PT Hoffmen International, CV Surya Amindo Perkasa (SAP), PT Palu Barug Yaku and PT Cipta Hutama Meranti.

According to Interior Ministry Regulation No. 20 of 2018, these funds should have been deposited into the village cash account and recorded in the Village Budget (APBDes). “However, in practice, the suspect is alleged to have committed a series of unlawful acts to misappropriate these funds,” Laode explained.

The investigation revealed the suspect’s modus operandi: he unilaterally issued a decision establishing a CSR management team before being provisionally suspended from his position as village head. “The suspect opened a new account in the name of the CSR team, then requested the mining companies to redirect fund transfers from the legitimate village cash account to that account,” he said.

Laode noted that the suspect allegedly acted as the full controller, instructing the team’s treasurer to sign blank withdrawal slips and is suspected of receiving Rp732 million in cash from one of the mining companies. “Based on calculations, there is a state loss of Rp9.6 billion,” he said.

Investigators have also seized several assets suspected to be connected to the case, including a Mitsubishi Pajero luxury vehicle, a Mercedes-Benz, and three units of heavy equipment. “We have seized financial transaction documents and several valuable assets suspected to be related to the case,” he said.

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