KPK to Follow Up FBI's Allegations of Bribery at MAXpower

Jakarta Globe, Fana Suparman, October 03, 2016

A miniature of the Lontar power plant in Banten. (Antara Photo/Yudhi Mahatma)

Jakarta. Indonesian anti-graft agency KPK said it will follow up on initial reports from the United States Federal Bureau of Investigation that power plant builder MAXpower had allegedly paid bribes to Indonesian officials to secure government contracts.

"We will look at the FBI investigation. If we find the alleged flow of cash to government officials in Indonesia, we will follow up the case," Corruption Eradication Commission (KPK) deputy chairman Alexander Marwata told reporters in Jakarta on Monday (03/10).

Alexander's comment came after reports arose that London-based bank Standard Chartered was investigated by the US Department of Justice over claims that its Indonesian power plant builder subsidiary MAXpower had paid bribes to secure contracts in Indonesia.

The Wall Street Journal newspaper reported an internal audit of the MAXpower Group had revealed evidence of possible bribery and US prosecutors were examining whether Standard Chartered was culpable for not stopping it.

The reports showed indications that MAXpower made inappropriate payments to Indonesian government officials between 2012 and 2015.

"We definitely will cooperate with the FBI. According to the UNCAC [United Nations Convention against Corruption], all countries must cooperate to eradicate corruption," Alexander said.

Alexander pointed out that the KPK already has experiences handling corruption cases involving multinational companies, including a case involving Indonesian Democratic Party of Struggle (PDI-P) politician Emir Moeis who was jailed for taking $357,000 in bribes from Alstom Power, an American subsidiary of its French parent company, and Japan-based Marubeni Corporation.

"We will process this case the same way we brought Emir Moeis and former Pertamina director Suroso, who also took bribes from multinational companies, to justice," Alexander said.

Responding to the allegations, MAXpower claimed they gave a "one-sided and partial view of the operations and events at the firm and as such do not give a full, or true view.”

Under a deferred prosecution agreement it reached with US authorities in 2012, Standard Chartered is due to remain under supervision by an independent monitor until the end of 2017.