State Losses from Illegal Mining in PT Antam Konawe Utara Concession Reaches IDR 5.7 Trillion

BPK audit, potential state losses from illegal mining in the PT Antam Mandiodo Block concession, North Konawe, amount to Rp 5.7 trillion. It is a calculation of state losses since the concession was mined until today.

The following article was translated using both Microsoft Azure Open AI and Google Translation AI.

KOMPAS/SAIFUL RIJAL YUNUS

Southeast Sulawesi Prosecutor's Office in Kendari, Thursday (17/6/2021).

KENDARI, KOMPAS - Illegal mining and sales of nickel ore in the PT Antam Konawe Utara concession area in Southeast Sulawesi are estimated to have caused state losses of Rp 5.7 trillion. For years, the mostly forested area in the concession has been illegally mined. The Southeast Sulawesi High Prosecutor's Office continues to investigate, including examining several parties in the Ministry of Energy and Mineral Resources.

"The audit conducted by the Audit Board of the Republic of Indonesia (BPK) revealed that the potential state losses from the opening of the mining zone in the IUP (Mining Business License) of PT Antam in Mandiodo Block, North Konawe reach Rp 5.7 trillion. This estimation is provided by BPK, and we are also requesting an audit from the Financial and Development Supervisory Board (BPKP)," said the Head of the High Prosecutors' Office of Southeast Sulawesi, Patris Yusrian Jaya in Kendari, on Thursday (July 13, 2023)."

According to the calculation by the BPK, he added, it is a calculation of the state's losses since the concession was first opened for mining. Over the years, the opening of the area has occurred in this region. Recently, they conducted an investigation in the Mandiodo Block due to indications of corruption and state losses. Four people have been designated as suspects, both from PT Antam Tbk Unit Nickel Mining Business (UPBN) North Konawe and the private sector.

Since the beginning of June, the Attorney General's Office of Southeast Sulawesi has designated a number of suspects from illegal mining and ore sales, including the GM of PT Antam UPBN Konawe Utara HW. In addition to HW, three others are GL as the field executor of PT Lawu Agung Mining, AA as the Director of PT Kabaena Kromit Pratama, and OS as the Managing Director of PT Lawu Agung Mining. They are strongly suspected of being involved in illegal mining and ore sales practices in the PT Antam concession.

According to Patris, the Attorney General's Office of Southeast Sulawesi has also requested the calculation of state losses from BPKP in the case. "The BPK calculation becomes our reference for a comprehensive calculation of state losses. However, we are still focusing on a specific period, especially the investigation of the case, which is still ongoing with further investigation and development, including requesting an audit from BPKP," he said.

KOMPAS/SAIFUL RIJAL YUNUS

The General Manager of PT Antam UPBN Konawe Utara, Hendra Wijayanto, was detained by investigators from the Sultra Prosecutor's Office in relation to illegal mining activities in Mandiodo Block in Kendari, Sultra on Friday (23/6/2023) night. This illegal nickel ore mining and sales case involves many parties.

Intelligence Assistant of Kejati Sultra, Ade Hermawan, explained that the calculation by the BPK differs from their request for calculation to the BPKP. The value of the losses from the BPK is the total of illegal mining and the opening of the area so far. Meanwhile, the calculation currently being carried out by the BPKP is the period of work of PT Antam with several companies from December 2021 until now.

"Thus, the focus of BPKP is to calculate the state's losses during the contract period between PT Antam and several companies that are currently within our investigation's scope. The value is still being calculated," said Ade.

Also read: High-ranking PT Antam Konawe Utara Becomes a Suspect in Illegal Ore Sales Case

PT Antam has a number of concession areas in North Konawe. One of them is the Mandiodo Block, covering around 16.900 hectares in the North Konawe region. The area has been in dispute for more than a decade, as 11 overlapping permits have also been issued on top of it. PT Antam then sued and won in 2021 and started nickel production in the area. The production in 2021 is now under investigation by the Sulawesi Southeast Prosecutor's Office.

The Financial Audit Agency (BPK) has reported that the potential state losses from the opening of the IUP PT Antam area in Mandiodo Block, North Konawe, have reached IDR 5.7 trillion.

Ade explained, after having permanent legal force, PT Antam then entered into a joint operation with PT Lawu Agung Mining and Perusda Southeast Sulawesi. The two companies then carried out a joint operation with 38 companies to work on the PT Antam concession.

However, out of thousands of hectares of PT Antam's concessions in Block Mandiodo, only 22 hectares can be managed and included in the budget plan. This is because thousands of other hectares are forest areas that require a forest borrowing permit (IPPKH). Although the company does not yet have an IPPKH, it still applied to increase the mining area by 157 hectares.

KOMPAS/VIDELIS JEMALI

The mining location is located in the mountains not far from the settlements and the sea in Mandiodo Village, Molawe District, North Konawe Regency, Southeast Sulawesi, as seen on Friday (3/11). Mountain mining seriously damages the coastal ecosystem.

The nickel produced from mining on hundreds of hectares of land, Ade continued, was then sold illegally. Most of the nickel, which should have been sold to PT Antam, was smuggled out. These perpetrators were known to have used documents from other companies, including PT KKP, and disguised the nickel ore as a result of mining in other places.

"So far, the owner of the documents has become a new suspect in PT Kabaena Kromit Pratama (KKP). Our investigation shows that more than three documents were used by the perpetrators to sell nickel ore to smelters," he said.

Not only that, the Sulawesi Southeast Attorney General's Office continues to develop this case. A former Acting Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources (ESDM) was questioned on Thursday at the Attorney General's Office. Three other people with different positions at the Ministry of ESDM have been questioned before.

Also read: Illegal Mining in PT Antam Konawe Utara Concession Clears Hundreds of Hectares of Forest

Previously, Corporate Secretary Division Head of PT Antam Tbk Faizal Alkadri said that his party respects the ongoing legal process and will provide the information needed. This is in line with the company's commitment to always cooperate with related parties if there are things that are needed.

"Regarding the ongoing case, we are currently reviewing and monitoring the situation. Therefore, any matters related to this issue will be communicated later after there is clarity and further information," he said.

KOMPAS/SAIFUL RIJAL YUNUS

The office of PT Antam UPBN Konawe Utara was raided by the South East Sulawesi High Prosecutor's Office in Kendari on Monday (5/6/2023). This is related to a mining corruption case that is currently under investigation.