Former Antam executives charged with $200 million in gold refining corruption

Jakarta. Six former executives of state mining company Antam (IDX: ANTM) have been charged with corruption that allegedly caused losses to the state of 3.31 trillion rupiah ($203.19 million). The allegations relate to mismanagement and fraudulent activities related to 109 tonnes of gold from Antam between 2010 and 2022.

During a corruption trial at the Jakarta Anti-Corruption Court on Monday, prosecutor Syamsul Bahri Siregar revealed that the defendants were involved in illegal activities that brought financial benefits to themselves or other parties, ultimately harming the state’s economy.

The defendants are former vice presidents of Antam’s Precious Metal Processing and Refining Business Unit (UBPP LM), including Tutik Kustiningsih (2008-2011), Herman (2011-2013), Dody Martimbang (2013-2017) and Abdul Hadi Aviciena (2017 ). –2019). They are joined by former CEOs Muhammad Abi Anwar (2019-2020) and Iwan Dahlan (2021-2022).

The prosecutor’s office said the defendants were accused of colluding with seven people from the private sector who acted as clients of gold refining and smelting services. The private sector defendants are Lindawati Efendi, Suryadi Lukmantara, Suryadi Jonathan, James Tamponawas, Ho Kioen Tjay, Djudju Tanuwidjaja and Gluria Asih Rahayu.

According to the indictment, the scandal began when Antam’s management established cooperation with third parties between 2010 and 2022 – including individuals, gold shops and companies – that were not covered by Antam’s official contracts. This cooperation included gold refining and smelting, but was not part of the company’s core business.

The prosecutor’s office said these partnerships were conducted without proper business and legal analysis, risk assessment or approval from Antam’s board of directors. Additionally, due diligence and Know Your Customer (KYC) protocols were not maintained, making it impossible to determine the origin or legality of the refined gold. This lack of oversight has raised concerns about potential links to illegal mining, human rights abuses, money laundering and even terrorist financing.

The accused executives allegedly facilitated these transactions by bypassing standard procedures by requiring customers only to provide basic identification and proof of affiliation with Antam’s refining services. As a result, the origin of the gold remained unclear, potentially violating legal and ethical standards.

The financial consequences of the scandal were significant, with the country suffering losses totaling 3.31 trillion rupiah. It was established that people from the private sector involved in the program illegally profited from the program – among others, Lindawati Efendi earned 616.94 billion rupees, Suryadi Lukmantara – 444.93 billion rupees, and Suryadi Jonathan – 343.41 billion rupees.

Tags: Keywords: