https://www.scmp.com/week-asia/economics/article/2169205/has-corruption-stalled-shenzhen-indonesia
The raids came after a Lippo executive, operational director Billy Sindoro, was arrested on Monday evening under suspicion of instructing his staff to pay bribes worth up to US$460,000 to a local leader and her officials to ensure Meikarta, Lippo’s biggest ever project, could start construction. Nenang Hasanah Yasin, the regent of Bekasi, and four public servants accused of accepting the bribes were also arrested, along with two Lippo consultants and an employee. Investigators confiscated 513 million rupiah (US$33,708) and S$90,000 (US$65,227), but this was thought to be only part of the bribes. <https://cdn3.i-scmp.com/sites/default/files/images/methode/2018/10/19/e243f2a6-d2d3-11e8-81a4-d952f5356e85_image_hires_110340.jpg>The Lippo Group, which is behind Meikarta, also has significant business interests in Hong Kong and South Asia. Photo: Bloomberg A spokesman for James Riady confirmed on Thursday night that a search did occur at his residence in connection to the KPK investigation, saying “there were no documents/items found or seized in relation to the case. Mr Riady remains fully committed to assisting the KPK in their efforts as is necessary.” “If the Meikarta project is stopped due to licensing that has not been done or is not correct, or other problems, the government must guarantee the rights of consumers who have already made a purchase transaction,” he said. Richard van der Schaar, managing director of the Indonesia Investments business consultancy, said that despite market concerns, he expected most of the Meikarta project to be completed in the years to come – albeit with some delays. “Lippo Group shares may have tumbled this week but I don’t foresee any long term consequences,” he said. “It is quite common in Indonesia to see some officials being bribed in big construction projects, and it is also quite common to see the start of construction without having secured all necessary permits. Usually the legal and regulatory framework is not ready to deal with a big project that covers multiple local ‘jurisdictions’. Anyone who is convicted of bribery offences will probably need to face a couple of years in jail but for the group itself I don’t foresee any big impact. RELATED ARTICLES [image: Shinta Ratri, a transgender woman who runs an Islamic boarding school for other transgender women. 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Photo: Reuters] <https://www.scmp.com/news/asia/southeast-asia/article/2168718/indonesias-transgender-women-find-rare-haven-hostility> <https://www.scmp.com/topics/lgbti> Indonesia’s transgender women find rare haven from hostility at Islamic boarding school <https://www.scmp.com/news/asia/southeast-asia/article/2168718/indonesias-transgender-women-find-rare-haven-hostility> [image: The Indonesian fisheries minister – known for her penchant for blowing up wayward vessels – sets her sights on Chinese habits ahead of an international conference that will tackle overfishing] <https://www.scmp.com/week-asia/geopolitics/article/2169153/china-calls-it-fishing-indonesia-calls-it-crime-pudjiastuti> <https://www.scmp.com/topics/indonesia> ‘China calls it fishing, Indonesia calls it crime’: Pudjiastuti finds her target for Oceans summit <https://www.scmp.com/week-asia/geopolitics/article/2169153/china-calls-it-fishing-indonesia-calls-it-crime-pudjiastuti> - 1 - 2 - 3 - 4 “I also expect most of the Meikarta project to go ahead although there will be a delay due to the legal process and investigation.”
