Jakarta. The Corruption Eradication Commission (KPK) has launched an investigation into Sigma Cipta Caraka (SCC), a subsidiary of the state-run telecommunication company Telkom, regarding an alleged graft scandal involving "hundreds of billions of rupiah."

KPK spokesman Ali Fikri said on Thursday the scandal revolves around fraudulent procurement for the company’s data center project, implicating the involvement of a middleman.

"The KPK has initiated a graft investigation into SCC’s goods and service procurement spanning from 2017 to 2022," Ali said in Jakarta. "An initial estimate by the auditors of the BPKP (State Development Finance Controller) suggests a state loss of hundreds of billions of rupiah."

He noted that the commission has identified several suspects in the case but refrained from providing specific details, citing the ongoing process of gathering evidence and testimonies.

"We will release further information after arrests are made and will provide updates as the investigation unfolds," the spokesman assured.

Sigma Cipta Caraka, also known as Telkomsigma, is an information technology company offering cloud computing, cyber security, and various IT services to over 500 clients, including banks and financing firms, as per the company’s website. Telkom holds a 56.4 percent stake in Sigma.