KPK Warns of Corruption Vulnerabilities in Kepri's Galang Batang SEZ
Bintan (ANTARA) - The Corruption Eradication Commission (KPK) has spotlighted potential governance vulnerabilities in the development of the Galang Batang Special Economic Zone (SEZ) in Bintan, Riau Islands (Kepri), which holds an investment value of up to Rp120 trillion.
In a field review, the KPK stressed the importance of mitigating corruption risks, particularly in licensing aspects and the supply chain for strategic industries. This 2,333.6-hectare zone not only holds significant investment potential but is also projected to absorb up to 110,000 workers.
“However, behind these opportunities, we see gaps that need to be closed immediately to avoid deviant practices,” said the Head of the Coordination and Supervision Task Force for Region V of the KPK, Dian Patria, in an official statement received in Bintan on Wednesday.
Dian emphasised that the licensing process is a critical point vulnerable to misuse. He stressed that there should be no moral hazard or conflicts of interest in the licensing process at the Galang Batang SEZ.
“They (investors) certainly want certainty. This also relates to the country’s reputation in the eyes of the world, but it should not harm the surrounding community,” he stated.
Furthermore, the KPK is paying special attention to the operations of the PT Bintan Alumina Indonesia (BAI) aluminium smelter. Strengthening supply chain governance is seen as key to preventing future legal issues.
“This step is considered important to ensure investment sustainability while guaranteeing that industrial practices operate in accordance with legal compliance principles,” Dian said.
Meanwhile, the Head Administrator of the Galang Batang SEZ, Vita Budhi Sulistyo, stated that investment realisation in the Galang Batang SEZ reached Rp34 trillion through 2025, with a projected target of Rp36.25 trillion by 2027 from 26 business actors.
“We are aware that there are still challenges, from development licensing to foreign workers. We continue to strengthen synergy with relevant ministries and local government,” Vita said.