Corruption Inquiry unfolds in Indonesian Ministry of Defense Satellite Procurement
Jakarta – An investigation by the Deputy Attorney General for Military crimes (Jampidmil) is underway,focusing on alleged corruption within the Ministry of Defense’s (Kemhan) procurement project for satellite slot orbit 123 degrees East longitude. The period under scrutiny spans from 2012 to 2021. The probe has already led to the identification of a retired Indonesian National Armed Forces (TNI) admiral as a suspect.
Key Suspects identified
According to Kapuspenkum AGO Harli Siregar, investigators have formally named three suspects in connection with the case:
- L: A retired TNI Muda Admiral, who served as Head of the Ministry of Defense Defense Facilities Agency and as the Commitment making Officer (PPK).
- ATVDH: Described as an intermediary in the procurement process.
- GK: Representing Cro Navayo International AG.
Investigators at Jampidmil have named the first suspect, the TNI muda Admiral (Ret.) As the Head of the Ministry of Defense defense Facilities Agency and as the Commitment Making Officer (PPK). Second, ATVDH (always intermediaries). Third, GK as Cro Navayo International AG,
Siregar stated.
Contractual Agreements and Procurement Irregularities
The investigation centers on a contract signed in July 2016 between the Ministry of Defense, represented by suspect L, and suspect GK of Navayo International AG. This agreement, valued initially at $34,194,300 and later amended to $29,900,000, concerned the provision of user terminals and related equipment.
A critical point of contention is the appointment of Navayo International AG as a third party. That the appointment of Navayo International AG as a third party without going through the process of procurement of goods and services, where Navayo International AG is also a proposal from (suspect) ATVDH,
siregar explained, highlighting the alleged circumvention of standard procurement procedures.
Did You Know?
The process of procuring satellite slots involves complex international negotiations and regulatory approvals, frequently enough requiring specialized expertise and adherence to strict protocols.
Discrepancies in Performance and Verification
Navayo International AG claimed to have delivered goods to the Indonesian Ministry of Defense and subsequently provided four Certificate of Performance (COP) letters. However, these certificates are now under scrutiny.
Where the COP has been prepared by ATVDH without checking the goods sent first. The Navayo International AG conducts billing to the Ministry of Defense of the Republic of Indonesia by sending four invoices (requests for payment and COP),
Siregar noted, suggesting a lack of due diligence in verifying the delivered goods.
Expert Analysis and Findings
By 2019, with no satellite procurement budget available, Jampidmil investigators commissioned an examination of Navayo International AG’s work by Indonesian satellite experts. The findings raised serious concerns.
With the conclusion of the work of Navayo International AG, it cannot build a user terminal program as the results of laboratory examinations of mobile phones of 550 pieces were not found core chip from the use of the user terminal, the work of Navayo International AG on User Terminal was never tested for Artemis satellites in the orbit slot 1230 BT, and goods sent by Navayo International AG were never opened and examined,
Siregar stated, indicating that the delivered equipment failed to meet the required specifications and was never properly tested or inspected.
Arbitration and Financial Obligations
Despite the issues with the delivered equipment, the Indonesian ministry of Defense faced a significant financial obligation due to the signed Certificate of Performance (COP). A Singapore Arbitration Award Final Award mandated a payment of $20,862,822.
moreover, according to calculations by the Financial and Development Supervisory Agency (BPKP), the actual value of the activities carried out by Navayo International AG was approximately IDR 1.92 billion, based on customs value.
To fulfill the obligation to pay a total of USD 20,862,822 based on the Singapore Arbitration Decision Final Award and the request for the confiscation of Deputy Representatives of the Republic of Indonesia, the official residence of the Defense and Official House (Apartment) coordinator of the Indonesian Embassy Followed by Navayo International AG on the Singapore International Commercial Court (ICC) Arbitration Decision, investigators at Jampidmil have set suspects based on the Sprin number 78A/PM/PMPD.1/05/2025 dated May 5, 2025,
Siregar explained, detailing the legal basis for the suspect designations.
Legal Charges
The three suspects face multiple charges related to corruption.
The article alleged by Article 2 paragraph 1 of juncto Article 18 of Law Number 31 of 1999 as amended by Law Number 20 of 2001 concerning Eradication of Corruption Crimes in conjunction with Article 55 paragraph one first juncto Article 64 of the Criminal Code,
Siregar stated.
Subsidiary charges include Article 3 in conjunction with Article 18 of Law number 31 of 1999 as amended by Law Number 20 of 2001, and Article 8 juncto Article 18 of Law Number 31 of 1999 as amended by law Number 20 of 2001.
More subsidiary Article 8 juncto Article 18 of Law Number 31 of 1999 as amended by Law Number 20 of 2001 concerning Eradication of Corruption Crimes in conjunction with Article 55 paragraph 1 of juncto Article 64 of the Criminal Code,
he concluded.
Pro Tip
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FAQ Section
Jampidmil stands for Deputy Attorney General for Military Crimes of the Attorney General’s Office.
The investigation covers the period from 2012 to 2021.
The key suspects include a retired TNI Muda Admiral (L), an intermediary (ATVDH), and a representative of Cro Navayo International AG (GK).
The suspects face charges related to corruption under Indonesian law.
