PT HWR Director Named Suspect in Alleged Gold Mine Corruption

The Special Crimes Investigation Team of the North Sulawesi High Prosecutor’s Office has named BDG, Director of PT Hakian Wellem Rumansi (HWR), as a suspect in an alleged corruption case concerning the management of a gold mine during the 2020–2025 period. Head of Legal Information at the North Sulawesi High Prosecutor’s Office, Januarius Bolitobi, stated on Friday that the case is suspected of causing state losses and environmental damage totalling Rp45 billion. “The alleged criminal act of corruption related to the management of mining activities at PT HWR for the 2020–2025 period resulted in state financial losses and losses due to environmental damage totalling Rp45 billion,” he said. Based on investigation findings, BDG, who served as Director of PT HWR from 2019 to 2024, is suspected of committing unlawful acts in the management of mining activities. Investigators suspect the individual did not conduct an initial investigation regarding exploitation activities as a basis for preparing the company’s feasibility study. However, the suspect allegedly still declared the results of the company’s initial investigation and exploration in 2019 as valid, as if those activities had been carried out, to serve as the basis for preparing the feasibility study and the 2021 Work Plan and Budget. Additionally, BDG is suspected of collaborating with BAT, the former Head of the Energy and Mineral Resources Office of North Sulawesi Province who was previously named a suspect, to alter the feasibility study unlawfully. Investigators also suspect BDG provided money amounting to approximately Rp200 million to Rp300 million to BAT to facilitate the processing of the feasibility study. Based on investigators’ calculations, the total loss in this case reaches Rp45 billion. This figure comprises environmental damage losses on 43 hectares of land amounting to Rp17 billion, based on an assessment by an environmental expert from the Bogor Agricultural Institute, and state losses of Rp28 billion from illegal gold management, based on calculations by an expert from Tadulako University. The suspect is charged with violating Article 603, Article 604, and Article 605 of Law Number 1 of 2023 concerning the Criminal Code, in conjunction with Article 2 paragraph (1), Article 3, and Article 5 of Law Number 31 of 1999 concerning the Eradication of Criminal Acts of Corruption, as amended by Law Number 20 of 2001. Investigators have detained BDG for investigative purposes after he was examined as a suspect and is believed to be involved in the criminal act of corruption based on sufficient evidence. BDG is being held at the Class IIA Manado Detention Centre for 20 days. Assistant for Special Crimes at the North Sulawesi High Prosecutor’s Office, Zein Yusri Munggaran, stated that the investigation into the case is still developing and does not rule out the possibility of additional suspects. Previously, investigators had named two other suspects: BAT, the former Head of the Energy and Mineral Resources Office of North Sulawesi Province in 2019, and HJ, a Chinese national who served as Operational Manager of PT HWR for the 2020–2025 period. HJ has been placed on a Wanted List after failing to comply with three summonses from investigators without valid reason. The North Sulawesi High Prosecutor’s Office affirmed its commitment to completing the investigation of the case in a professional, transparent, and accountable manner in order to recover the state losses and environmental damage caused.