Government raids and arrest of Lippo executive in bribery probe threaten one of Asia’s biggest developments, known as the ‘Shenzhen of Indonesia’
The planned US$21 billion Meikarta development, covering 22 sq km of the Bekasi-Cikarang district on the outskirts of Jakarta, is the largest undertaking in Lippo’s history and would provide access to Southeast Asia’s first high-speed train
Indonesia’s anti-corruption agency said on Thursday it had raided 10 locations, including the home of the deputy chairman of the Lippo Group, as part of a bribery investigation linked to the conglomerate’s US$21 billion Meikarta real estate project.
The raids came after the Corruption Eradication Commission, known as KPK, arrested two Lippo Group consultants and an employee accused of trying to pay off city officials to obtain property permits for Meikarta.
Billed as the “Shenzhen of Indonesia”, after the booming Chinese city, Meikarta is Lippo’s largest project to date and is meant to be a centre for the automotive and electronic industries. It will also include five-star hotels, shopping malls and universities.
The raids targeted the home of Lippo Group deputy chairman James Riady, a Lippo Group office and the home and offices of local government official Neneng Hasanah Yasin, who was one of nine suspects arrested by the KPK earlier this week.
Yasin, Riady and other representatives of the Lippo Group did not respond immediately to requests for comment.