Prosecutors search Huadi smelter in corruption probe

Prosecutors from Southeast Sulawesi searched facilities linked to PT Huadi Nickel Alloy Indonesia as part of an investigation into alleged corruption involving nickel ore trading and shipping permits.

The search was conducted at the company’s nickel smelter in Bantaeng, South Sulawesi, and lasted around seven hours, according to Southeast Sulawesi Prosecutor’s Office spokesperson Irwan Said as reported by media.

Authorities are investigating alleged irregularities in the transport and sale of nickel ore originating from the former mining concession of PT Pandu Citra Mulia. Prosecutors allege the ore was shipped using the RKAB mining quota of PT Alam Mitra Indah Nugraha through port facilities operated by PT Kurnia Mining Resources and illegal jetties in 2023.

Investigators seized documents and electronic evidence during the search, prosecutors said. Earlier this week, authorities also searched two locations in Makassar related to the same case.

Read also: Huadi Nickel Alloy placed under debt suspension by Indonesian court

The investigation focuses on alleged abuse of authority in the issuance of shipping permits by the Kolaka Port Authority office. Two suspects have been named, including Energy Ministry mining safety analyst Asrianto Tukimin and private contractor Ridham Renggala, who allegedly handled RKAB documentation for Alam Mitra Indah Nugraha.

Separately, the Makassar Commercial Court granted temporary debt payment suspension status, known as PKPU, to Huadi Nickel Alloy Indonesia for up to 45 days starting from April 28 following a petition filed by PT Gamma Berjaya Mineral.

Huadi Nickel Alloy Indonesia is a nickel pig iron producer jointly owned by China’s Shanghai Huadi Industrial Co Ltd with a 51% stake and PT Duta Nickel Sulawesi holding the remainder.

The company operates six rotary kiln electric furnace production lines with annual nickel pig iron capacity of around 450,000 tons.

Editing by Alexander Ginting