The Corruption Eradication Commission (KPK) is intensifying its investigation into Siman Bahar, the owner of PT Loco Montrado, regarding alleged irregularities in the import process of 3.5 tons of gold bullion valued at IDR 189 trillion ($13B approx.). This investigation has been further fuelled by recent developments and collaborations with the Money Laundering Crime Task Force (TPPU).
Head of the KPK News Section, Ali Fikri, confirmed on Wednesday, January 10, 2024, that the case involving Siman Bahar remains ongoing. Despite Siman’s recent surgery in Singapore, the investigation continues to gather momentum, focusing on the substance of further material development.
Coordinating Minister for Political, Legal, and Security Affairs, Mahfud MD, who chairs the TPPU Task Force, previously revealed the involvement of a businessman with initials SB in suspicious transactions totaling IDR 189 trillion ($13B approx.). These transactions implicated three entities connected to SB’s company, PT LM, and involved the falsification of customs data, resulting in the loss of Income Tax (PPh) levies under Article 22 of the Tax Law for imported gold bullion weighing 3.5 tons.
Mahfud explained that SB’s modus operandi involved transforming imported gold bullion into jewelry that had been exported, with evidence suggesting that these 3.5-ton gold bars may still be circulating in domestic trade. The misuse of the PPH Exemption Decree Article 22 was a significant concern. The transactions took place between 2017 and 2019, and among the companies affiliated with Siman Bahar, PT Loco Montrado was identified.
DJP investigators obtained an agreement document related to the processing of metal anodes from PT ATM to the SB group (PT LM) in 2017, suspecting it to be a cover for incorrect goods exports. The actual transaction value is still under investigation, as is the underpayment of taxes, along with estimated fines reaching hundreds of billions of rupiah.
Siman Bahar’s involvement in the Corruption Eradication Committee’s investigation is primarily related to alleged corruption in the processing of low-grade gold metal anodes (dore) between PT Antam and PT Loco Montrado. Apart from Siman Bahar, former General Manager (GM) of Antam’s Precious Metal Refining and Processing Business Unit (UBPP LM) for the 2013-2017 period, Dody Martimbang, was also named a suspect. Dody was sentenced to 6.5 years in prison in October 2023.
The investigation reveals that the transactions involving gold anodes were not processed as originally intended but instead involved the exchange of gold from dore shipments sent by Antam. Antam received high-grade gold anodes on April 5 and 10, 2017, followed by multiple shipments of low-grade gold anodes from April 28 to August 4, 2017. These shipments resulted in excess gold received by Antam and a shortage of silver.
Overall, the investigation highlights discrepancies in gold and silver exchanges and the failure to return gold bars to their original form, necessitating further processing. Furthermore, Antam incurred additional costs related to gold import taxes totaling IDR 6,711,307,000 ($425k approx.), further adding to the financial impact of the alleged irregularities.
Siman Bahar’s involvement in this investigation continues to be a focal point for the Corruption Eradication Commission, as the case unfolds and more details come to light.
Dear Media, you really need to look at which other companies were involved with Siman Bahar in this case! Also the PT Antam involvement is huge!
Here is a link to the LBMA reports on them from 2021 which was after this alleged case!
INDEPENDENT REASONABLE ASSURANCE REPORT
LBMA Responsible Gold/Silver Sourcing Audit
PT ANEKA TAMBANG TBK – UBPP LOGAM MULIA
27-29 December 2021
