Indonesia's chief energy regulator seized while allegedly accepting cash bribe of US$400,000

Anti-graft officers swooped on the home of Indonesia's chief energy regulator and arrested him as he received a bribe of US$400,000 in cash from an oil firm employee, the corruption agency said yesterday.

The arrest is potentially a huge blow to Indonesia's attempts to attract more investment from international energy companies.

Several have threatened to scale back operations due to uncertainty about the investment environment.

The output of the former member of the oil-producers' cartel Opec is declining and the country has faced criticism for unclear regulations and complaints about a nationalist stance on resources.

The Corruption Eradication Commission (KPK) was questioning Rudi Rubiandini, chairman of the Special Task Force for Upstream Oil and Gas Business, said commission spokesman Johan Budi.

The unidentified employee of a private oil firm who was handing over the cash at about 10.30pm on Tuesday was also seized, along with an oil company official, in western Jakarta and Rubiandini's driver and two security guards.

Budi did not name the oil company.