Indonesian Political, Business & Finance News

KPK Probes Alleged Fee Collection in Railway Projects, Former Ministry Official Summoned

| Source: CNBC Translated from Indonesian | Legal
KPK Probes Alleged Fee Collection in Railway Projects, Former Ministry Official Summoned
Image: CNBC

The Corruption Eradication Commission (KPK) is investigating the alleged practice of collecting fees or rewards from a number of projects within the Ministry of Transportation (Kemenhub). The investigation was conducted while examining Danto Restyawan, the former Director of Railway Traffic and Transport and former Director of Road Transport Facilities at the Ministry, as a witness on Thursday (25/6/2026).

“The witness was present. Investigators are looking into the witness’s knowledge regarding the alleged collection of project fees,” said KPK Spokesperson Budi Prasetyo, as quoted on Sunday (28/6/2026).

Budi explained that the investigation is part of the inquiry into a suspected bribery case involving railway line construction and maintenance projects within the Directorate General of Railways (DJKA) at the Ministry of Transportation. In this case, the KPK suspects that winners were pre-determined for a number of projects under the DJKA across various regions in Indonesia. “There was a collection carried out within the DJKA, which was then distributed through intermediaries and so on,” he said.

According to Budi, the money collected is suspected to have flowed not only to parties within the DJKA but also to Ministry officials outside the DJKA and to members of the Indonesian House of Representatives (DPR RI). “In fact, in this DJKA case, there is also a suspect from the DPR RI, such as Mr. SDW (Sudewo), who is currently undergoing trial,” he stated.

The case initially came to light after the KPK conducted a sting operation at the Class I Railway Engineering Centre for the Central Java Region on 11 April 2023. The agency is now named the Class I Semarang Railway Engineering Centre. In this case, the KPK initially named 10 people as suspects in connection with alleged corruption in railway line construction and maintenance projects in Java, Sumatra, and Sulawesi.

As of 20 January 2026, the KPK has named 21 suspects, including Sudewo, a member of Commission V of the DPR RI for the 2019-2024 period. Of that number, some have been detained. In addition, two companies have also been named as corporate suspects. The case covers the Solo Balapan-Kadipiro-Kalioso double-track railway project, the construction of a railway line in Makassar, four railway construction projects and two supervision projects in Lampegan, Cianjur, as well as level crossing repair projects in Java and Sumatra. The KPK suspects that project winners were arranged through manipulation of the procurement process, from the administrative stage to the determination of the tender winner.

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