Indonesian social affairs minister resigns over graft allegations, new minister appointed
The Corruption Eradication Commission building. (Photo: AFP/Bay Ismoyo)
JAKARTA: Indonesia’s Social Affairs Minister Idrus Marham resigned on Friday (Aug 24), after being named a suspect by the Corruption Eradication Commission (KPK).
Idrus, a high-ranking Golkar Party member, is the first member of President Joko Widodo’s Cabinet to be named a suspect in a graft investigation.
He was appointed Social Affairs Minister in January this year, to replace Khofifah Indar Parawansa who resigned from the post to run in East Java's gubernatorial election.
Widodo appointed Golkar Party politician Agus Gumiwang Kartasasmita as the new social affairs minister on Friday afternoon, hours after Idrus’ resignation.
Idrus submitted his resignation letter on Friday to Widodo after an investigation notice was issued by the Commission on Thursday, and told media at the Presidential palace that his move to back down from his position was based on ethical and moral reasons.
Local media reports citing Corruption Eradication Commission Deputy Chairman Basaria Panjaitan stated Idrus was promised US$1.5 million in relation to an alleged bribery involving the development of a coal-powered power plant in Riau province - the Riau-1 project - part of the government's 35,000 megawatt power development plan.
The power plant project is being developed by state-owned electricity firm Perusahaan Listrik Negara (PLN). Chief Executive Sofyan Basir previously said the project was worth US$900 million.
The consortium for the Riau-1 project includes coal miner BlackGold Natural Resources and machinery company, China Huadian Engineering, together with Pembangkitan Jawa Bali (PJB), a subsidiary of the state electricity company which has a majority stake in the project.
Two other suspects have also previously been named by the Commission in relation to the case, Golkar party lawmaker Eni Saragih and businessman Johannes Budisutrisno Kotjo, who is a shareholder of BlackGold Natural Resources Limited.
Eni is suspected of having received bribes totalling about US$333, 000, which is believed to be a 2.5 per cent commitment fee from the contract value of the project, given to her in stages.
PJB has reportedly been in talks for around two years with the consortium and had yet to reach agreements on power pricing or project operations. The money, according to reports, was part of a commitment fee in exchange for the project.
Idrus has also resigned from the Golkar Party’s management structure.
