Police Raid Surabaya Contractor Office over Assembagoes Sugar Factory Case

Investigators from the Police Corruption Eradication Corps (Kortas Tipikor) raided the office of PT Multinas Tjahja Sejahtera in Surabaya, East Java, on Tuesday. Head of Operations for Kortastipidkor, Commissioner Ahmad Yusuf Afandi, stated the search is linked to an alleged corruption case in the modernisation project of the Assembagoes Sugar Factory in Situbondo, which has resulted in state losses amounting to Rp645 billion. Yusuf said PT Multinas Tjahja Sejahtera was the third party or contractor that won the tender for the Engineering, Procurement, Construction and Commissioning (EPCC) project under the sugar factory modernisation programme owned by PTPN XI, now PTPN I. The case spans the period from 2016 to 2022. “We deliberately came to Surabaya to conduct a search related to the alleged corruption case of the EPCC project for the construction of the Assembagoes Sugar Factory,” Yusuf said during the search. He added that the state financial loss, calculated by the Audit Board of Indonesia (BPK), stands at Rp645 billion. Yusuf explained the search aims to deepen the investigation into the contractor’s involvement and to collect supporting evidence. “The search was conducted to locate and secure documents and evidence related to the investigation of the alleged corruption in the EPCC project of the Assembagoes sugar factory modernisation programme,” he stated. At the location, the search at the Klampis Megah D-27 shop-house in Sukolilo District, Surabaya, proceeded under strict guard. Two armed police personnel were seen posted at the entrance. As a result of the search, investigators seized a number of documents strongly suspected to be related to the execution of the modernisation project in Situbondo. Yusuf said the documents would be taken for further examination. He detailed that based on the BPK audit results, the six-year project recorded state losses of Rp645 billion. Nevertheless, police have not yet named any suspects in this case. Yusuf stated his team is currently focused on strengthening evidence. “All findings will still be reviewed to complete the evidence and case filing requirements,” he said. Apart from Surabaya, Kortas Tipikor is also reported to have conducted parallel searches in the Gresik Regency area to investigate a similar case. “In East Java we have three locations related to this case. Two locations are in Surabaya and one is in Gresik,” he said.