Bali State Land Corruption Probe: Estimated Loss Exceeds IDR 2.2 Trillion

The Corruption Eradication Task Force (Kortas Tipidkor) of the Indonesian National Police is investigating a corruption case involving the alleged illegal occupation of state land in Bali. The case centers on a plot of land measuring 230,450 square meters, officially registered as state asset under the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN). Brigadier General Indra Lutrianto Amstono, Director of Asset Tracing and Security at Kortas Tipidkor, stated that the corruption case stems from a land exchange (ruislag) process between BPN and PT Marga Srikaton Dwipratama (MSD) concerning land located in Ungasan Village, South Kuta, Badung, Bali. During this land exchange, PT MSD was declared the auction winner. However, the company has yet to fulfill its obligation to construct the BPN Bali building, the agreed-upon replacement asset. "The obligation to hand over the replacement asset, in the form of the construction of the BPN Bali building, has never been completed, so the exchange process has never been finalized," Amstono told reporters on Thursday (17/9). Despite the unfulfilled obligations, PT MSD has physically occupied the state land. Investigators have found evidence of fencing, signage, and the construction of guard posts, actions believed to have been ongoing since 2014. This situation has prevented the state from utilizing the valuable land asset. Compounding the issue, PT MSD has filed a civil lawsuit against the state as a basis for its claim over the land. Investigators are scrutinizing the alleged use of internal BPN documents and the seemingly completed land exchange process, despite the suspected non-fulfillment of the replacement asset obligation. "In addition to the actions of the private party, investigators are examining alleged neglect and abuse of authority by related parties within BPN," Amstono said. This includes the winner selection process, the non-disbursement of performance bonds, and the lack of physical security for the state asset. Preliminary calculations with the Audit Board of Indonesia (BPK) estimate the value of the lost state land asset between 2014 and 2024 to be approximately IDR 2.2 trillion (approximately USD 140 million). However, Amstono clarified that this is a preliminary figure and not the final determination of state financial losses. The valuation will be updated until 2026 through authorized examination mechanisms. "Based on appraisals considering the premium land value due to its location in a tourism area and its potential for tourism development or modern housing, the asset value could even reach around IDR 4.8 trillion (approximately USD 300 million)," he emphasized. The investigation is ongoing, and suspects will be named once sufficient evidence is gathered and a case-building meeting is held. "The determination of parties who can be held criminally liable will be based on the sufficiency of evidence and the results of the case-building meeting," Amstono concluded. Source: CNN Indonesia