WIKA Responds After Office Raided in Alleged Corruption Case
Jakarta, CNBC Indonesia - PT Wijaya Karya (Persero) Tbk (WIKA) has spoken out regarding reports of a raid on its office by the Police’s Corruption Eradication Corps (Kortastipidkor). The raid is reportedly linked to an investigation into alleged corruption in the development and modernisation project of the Assembagoes Sugar Factory owned by PTPN XI.
WIKA management confirmed that the raid, as reported by the media, took place on 9 June 2026. The company stated the activity was carried out to collect documentation related to the investigation process of the Assembagoes Sugar Factory construction project.
“The company assesses that the investigation and search process does not have the potential to cause a significant impact on the company’s operational activities, financial condition, or business continuity. The company continues to monitor and evaluate its reputation periodically,” the statement read, as quoted from an IDX information disclosure on Monday (15/6/2026).
WIKA explained its involvement in the project as a member of a Joint Operation (KSO) consortium with PT Barata Indonesia (Persero) and PT Multinas Indonesia. The three companies acted as the implementing contractor for the sugar factory construction.
Regarding the project status, WIKA stated that the Assembagoes Sugar Factory in Situbondo is currently operating under the management of PTPN. However, the WIKA-Barata-Multinas consortium still has outstanding obligations, namely a performance test that has been delayed due to several unfulfilled administrative requirements in the contract.
The company explained that completing the performance test requires contributions from all parties involved in the project implementation. Therefore, WIKA and the relevant parties continue to coordinate to resolve the administrative and technical aspects in accordance with the contract and applicable regulations.
Management assessed that the investigation and search process does not have the potential to significantly impact the company’s operational activities, financial condition, or business continuity. Nevertheless, WIKA stated it continues to monitor and evaluate its reputation periodically.
In an effort to minimise legal risks and strengthen corporate governance, WIKA revealed it has been running eight restructuring programmes since 2023. One of the main focuses of the programme is improving corporate governance and strengthening the internal control system. Measures implemented include the application of four-eyes principles in the tender process, improvements to construction contracts, and enhanced control mechanisms for joint operation (JO) projects. The company has also digitised its procurement process, uses a credit bureau, and implemented a whistleblowing system integrated with the Corruption Eradication Commission (KPK). Additionally, WIKA applies checkpoints at certain progress milestones to evaluate the commercial and operational performance of projects. The company also operates a Digital Control Tower to monitor project developments in real time and has implemented an ERP system based on SAP across all business units and subsidiaries.