KPK arrests Riau Islands governor

Indonesia, Jakarta (News Terupdate) - The Corruption Eradication Commission (KPK) has arrested Riau Islands Governor Ismeth Abdullah for corruption in the procurement of fire trucks during his tenure as the administrator of Batam Island.

“Yes, the news [about Ismeth’s arrest] is true,” Haryono Umar, the KPK deputy chairman for prevention, confirmed Monday to The Jakarta Post.

The arrest of Ismeth, a Golkar Party executive, raised an immediate outcry among party
officials.

They claimed the KPK’s move was in retaliation at Golkar’s insistence on pinning the blame for
the possible wrongful bailout of Bank Century on Finance Minister Sri Mulyani Indrawati and former Bank Indonesia governor and Vice President Boediono.

The party is set to announce its final conclusion on the case Tuesday at a session of the House of Representatives’ inquiry committee on the bailout.

Ismeth was transferred to Cipinang Penitentiary in East Jakarta following questioning by the KPK that ended at 5:50 p.m. Monday.

He may be held for up to 20 days before being charged.

The antigraft commission accuses Ismeth of complicity in marking up the prices of fire trucks to be procured by the Batam authorities, which is believed to have caused Rp 5.4 billion (US$580,000) in state losses.

KPK investigators allege Ismeth had directly appointed a company, PT Satal Nusantara, to procure the vehicles.

Ismeth is the latest official implicated in the case, which stemmed from a Home Ministry memo to regional administrations countrywide on the procurement of fire trucks.

The ministry’s director general of regional autonomy at the time, Oentarto Sindung Mawardi, has been convicted and jailed in the case. Other high-profile officials serving time for their role include former West Java governor Danny Setiawan, former Medan mayor Abdullah and Satal Nusantara owner Hengky Samuel Daud.

The home minister at the time, Hari Sabarno, has not been charged, despite claims by Oentarto that the procurement was “a conspiracy” involving Hari and Hengky.

Golkar’s Bambang Soesatyo said Ismeth’s arrest was yet another low blow to the party following its criticism of the handling by the central bank and the Finance Ministry of the Rp 6.76 trillion bailout of Bank Century.

Golkar was a late arrival to the coalition led by President Susilo Bambang Yudhoyono’s Democratic Party. “In politics, we interpret this move as pressure,” said Bambang, a member of the House inquiry committee into Century.

He added it was difficult to believe the various charges being leveled in recent days at Golkar officials was mere coincidence.

Party officials allege the attacks began with the tax office’s targeting of several coal-mining companies, partly owned by Golkar chairman Aburizal Bakrie’s family, for tax evasion.

The tax office falls under the auspices of the Finance Ministry.

Meanwhile, Golkar House chairman Setya Novanto and Century inquiry committee chairman Idrus Marham — both close aides to Aburizal — have both been reported to the police for alleged involvement in the illegal procurement of rice in 2003.

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