Indonesia Property Firm Agung Podomoro Says Top Exec in Custody, Resigns
Jakarta. The former top executive of Indonesian property developer Agung Podomoro Land is in the custody of Indonesia's anti-corruption agency pending an investigation by the latter in an alleged bribery case, a company spokeswoman told Reuters on Friday (27/05).
Earlier on Friday, Agung Podomoro, one of Indonesia's biggest property developers, said in a filing to the Indonesian stock exchange that president director Ariesman Widjaja had submitted a letter of resignation on May 25. The firm's shares dropped as much as 3.1 percent.
On April 1, the country's Corruption Eradication Commission (KPK) named Widjaja as a suspect for allegedly bribing a member of the Jakarta provincial assembly to influence the regulation for a multi-billion-dollar land reclamation project.
Reuters' efforts to contact Widjaja on Friday were unsuccessful, while his lawyer did not immediately answer phone calls or answer text messages. A spokeswoman for the KPK was not immediately available to comment.
Widjaja had not been active in managing the company since April 1, Agung said. Shareholders will review his resignation at an annual meeting scheduled for June 3, it said.
Last month, Indonesia's government suspended the construction of 17 artificial islands off the northern coasts of Jakarta. The mega-project has been dogged by the bribery scandal, bureaucratic wrangling and opposition from environmentalists and fishermen.
Agung had planned to build apartments, offices and shopping malls on parts of the artificial land.
The company's stock has lost around 15 percent since Widjaja was named a suspect by the KPK. After Widjaja was named, Agung said in a statement that its directors and legal team were studying the case and were committed to obeying the law.
Reuters
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