Jakarta. Indonesia prosecutors have seized two luxury hotels in the resort island of Bali as part of the ongoing corruption and money laundering investigation against palm oil tycoon Surya Darmadi, the Attorney General’s Office announced on Monday.
“The seized assets include land and two buildings namely Holiday Inn Resort Bali Hotel and Holiday Inn Express Bali Hotel," AGO spokesman Ketut Sumedana said in a statement.
Prosecutors obtained a warrant for the seizure of Surya’s assets from the Denpasar District Court in Bali, he added.
The move came after prosecutors were also authorized to seize Surya’s assets in Jakarta and Riau including residential and office buildings and lands.
The seizure was based on probable cause of corruption and money laundering which, according to an earlier AGO statement, have inflicted a loss of Rp 78 trillion ($5 billion) to the state.
Surya, the owner of business conglomeration Duta Palma Group, was arrested upon his arrival at Soekarno-Hatta Airport after a flight from Taiwan last week.
He is also wanted by the Corruption Eradication Commission (KPK) for allegedly bribing state officials and regional leaders in a separate land conversion case.
Prosecutors accused Surya, Duta Palma Group, and the company’s subsidiary Palma Satu of illegally occupying state lands for personal and corporate gains.
Both companies reaped Rp 600 billion in monthly profit from doing business on the illegally-occupied lands, causing a total loss of Rp 78 trillion to the state, according to the AGO.
The Indonesian law allows business entities to become corruption suspects. Another suspect in the case is identified as Suheri Terta, the group’s legal affairs manager.
The AGO didn’t say when the suspected crime began but Surya is accused of conspiring with Raja Thamsir Rachman, the two-term district head of Indragiri Hulu from 1999-2008 who is currently serving a jail term for misappropriating the district budget.