Shock in Jakarta: Lippo Group’s Mega‑Project Gets a Legal Reality Check
On Thursday (Oct 18), the Kingdom’s anti‑corruption squad—yes, the KPK, short for the Corruption Eradication Commission—went boom‑city style and raided ten places. One of those was the cozy loft of Lippo Group’s deputy chairman, James Riady. And voilà, the headlines scream louder than the bells on a Hindu temple: Meikarta, the $21 bn “Shenzhen of Indonesia,” is in the bribe‑fitting spotlight.
What Litany of Raids? The Skinny
- Property and docs, computers and “we’re not sure if those are phones” – everything that could hide a stash.
- The crew went from the deputy chairman’s pad to the offices of the local city rep, Neneng Hasanah Yasin (and her office). Yep, the same Yasin who’s now cook‑up‑something‑green for the region.
- They even snatched 513 million rupiah (about S$46K) and an extra 90,000 SR declared as bribe‑money.
Who Brought the Bribes?
Source: Lippo Group employees themselves told investigators that the idea shipped from the top—directed by the company’s own Billy Sindoro. (He’s now on the “arrested squad” list, along with Sindoro’s fellow public servants.) They’re all saying:
- “We followed the boss’s orders.”
- “We hoped the city would hand over permits faster.”
Official responses? Silence. Neither Yasin’s lawyers nor the Lippo Group’s spokespeople scratched their heads to answer.
Meikarta’s Upside (and Slump)
- “No tolerance for corruption” – a promise from the very same company that’s half-owned by Lippo Karawaci.
- Stock prices? Down. Lippo Karawaci tumbled 4.17 %, and Lippo Cikarang slipped 2.26 %.
- Sir, the exchange’s meeting with the Lippo Group reps is on its way. The big wigs are there to decide what’s next.
Credit‑Rating Wake‑up Call
Moody’s hammered a clear note: the alleged bribery fiasco? A credit negative for Lippo Karawaci. Investors are no longer just pocket‑coders hoping for a shiny city; they’re watching close‐out with caution.
Stay tuned, folks. The next chapter in Indonesia’s “Build‑and‑Bribe” saga might just hold the plot twist we all were hoping for.
