Indonesia Removes Deputy Minister Named in Graft Case | Company Business News

(Bloomberg) — Indonesia’s President Prabowo Subianto has signed a decree dismissing Immanuel Ebenezer from his position as Deputy Manpower Minister after being named a suspect in an extortion case, the first sitting member of his cabinet to be involved in an anti-corruption investigation.

State Secretary Minister Prasetyo Hadi said late Friday that all legal procedures regarding the case will run as they should, underscoring the President’s intention to fight against corruption.

Ebenezer allegedly participated in extorting parties seeking workplace safety certificates, charging them more than 20 times the supposed price, Setyo Budiyanto, chairperson of Indonesia’s anti-graft agency, said in a press conference on Friday. The agency known as KPK launched the investigation based on a public complaint.

The deputy minister allegedly got 3 billion rupiah ($183,000) in kickbacks in December 2024 for his involvement, Budiyanto said. He was caught, along with about a dozen others, in a sting operation that started on Wednesday night. Ebenezer will be detained for 20 days for further investigation.

Ebenezer denied his involvement in the extortion and and said he hopes to get clemency from the president, local media reported.

The incident will be a test for Prabowo, who in his annual national address last week said he would not tolerate corruption, even among big-name politicians and allies. Ebenezer previously led a pro-Prabowo volunteer group and is now a member of the president’s Gerindra party.

The issue quickly reverberated in Jakarta on Thursday when news broke about the sting operation. A lawmaker called the arrest an “own goal” for the government. On social media, Indonesians reposted controversial remarks Ebenezer made earlier this year telling those unhappy with the economy to “just leave the country.”

“This is a heavy blow for us,” Manpower Minister Yassierli said on Thursday.

D. Nicky Fahrizal, Jakarta-based researcher at the Center for Strategic and International Studies, lauded the government’s efforts to clean up its ranks. “The law is being applied without exception, and that deserves credit,” he said.

However, investors will need to see structural reforms to be convinced that corruption can be rooted out of Southeast Asia’s largest economy. “If it’s only the top people punished without deeper reform, cases like this will keep happening,” he said.

(Updates with comments from State Secretary and Deputy Minister Ebenezer in second and fifth paragraphs.)

More stories like this are available on bloomberg.com


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