Indonesia anti-graft probe widens as prosecutor faces corruption allegations

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Indonesia anti-graft probe widens

Highlights

Police raids in Jakarta seized 74kg of gold bars and Rp476bn ($26.5mn) in cash from Febrie Adriansyah, who resigned and was named a suspect in three corruption cases.
Additional searches at 12 sites linked to PLN, Asabri, and Krakatau Steel uncovered Rp60bn ($3.3mn) in cash and Rp7.2bn in 16 currencies suspected of being laundered.
The Attorney General’s Office taking over the probe raises concerns about institutional contestation and signals increased legal uncertainty that may deter investment in Indonesia.

Raids, seizures and expanding allegations

As first reported by the Financial Times, police raided more than a dozen locations in Jakarta and seized 74kg of gold bars and Rp476bn, or about $26.5mn, in cash from the home of deputy attorney-general for special crimes Febrie Adriansyah. Febrie later resigned from the Attorney General’s Office, was named a suspect in three corruption cases and was barred from leaving Indonesia, although he has not been detained.

Police also searched 12 other sites linked to investigations involving state-owned electricity company PLN, insurer and pension fund group Asabri and steel producer Krakatau Steel. At the De’Clan Signature cafe, officers found Rp60bn, or about $3.3mn, in U.S., Singapore and Indonesian currency in a safe hidden behind a cupboard, while investigators also confiscated 71 items of evidence and Rp7.2bn in 16 currencies from a neighboring money changer that police suspect was used for money laundering.

The cafe and money changer are linked to businessman Don Ritto, who has been named as a suspect alongside Febrie. Ritto’s lawyer says the seized money is unrelated to the three cases under investigation and is intended for business use.

Rule-of-law concerns and investor risks

Legal and anti-corruption experts say the case exposes a deeper struggle between rival institutions in Indonesia’s anti-graft system. Zaenur Rohman of Gadjah Mada University says the matter reflects contestation between legal institutions and corruption among law enforcement officials, while Bivitri Susanti of Jentera Law School says the developments send a damaging signal about how anti-corruption efforts are being conducted.

Febrie has been leading investigations tied to President Prabowo Subianto’s free school meals programme, which is already under public pressure over corruption allegations and food poisoning incidents. The confusion around the latest raids has deepened after reports of soldiers outside one of Febrie’s residences and an account from a security guard describing a stand-off involving armed personnel at a money changer, prompting civil society criticism over possible intimidation of legal proceedings.

Febrie says his office will continue investigations, including into the free meals programme, and the government communications agency says it is neither authorized nor willing to intervene in legal proceedings. But after Febrie’s home was searched, his acting replacement says the Attorney General’s Office will take over the investigation from police, a move some experts describe as a settlement that could further weaken corruption enforcement and deter investment by increasing uncertainty over legal protections in Indonesia.

In our earlier coverage of the Enforcement Directorate’s money-laundering case against Ashokkumar Eknath Kharat, we outlined how prosecutors brought the matter to court and moved to attach, seize, and freeze assets worth about ₹36.90 crore. The report also described allegations that illicit proceeds were routed through cooperative credit societies and layered via multiple accounts and cash transactions before being parked with associates or converted into real estate, with further investigation still under way.

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