State Land Fraud Scheme Uncovered in Indonesia's Whoosh Rail Project

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November 11, 2025 | 12:37 pm

TEMPO.CO, Jakarta - Indonesia's Corruption Eradication Commission (KPK) has uncovered a new modus operandi in the alleged corruption case involving land acquisition for the Jakarta-Bandung High-Speed Train project, also known as Whoosh.

State-owned land was reportedly resold by several parties to the government for use in this national strategic project.

“There are individuals who resold land that should have belonged to the state back to the state,” said KPK Acting Deputy for Enforcement and Execution, Asep Guntur Rahayu, at the KPK Merah Putih building in South Jakarta on Monday, November 10, 2025.

Asep said the finding emerged as part of the KPK’s ongoing investigation into alleged budget inflation, or mark-up, within the high-speed rail project jointly developed by Indonesian and Chinese consortia.

The alleged scheme involves manipulating land ownership status, making state assets appear as privately owned and then selling them to the government at inflated prices.

He explained that land already under state ownership should not require payment when used for government projects. If located in forest areas, it can be exchanged or converted with other plots.

However, in practice, some parcels were sold at prices far exceeding market value.

“This is not only unreasonable but also clearly structured to yield substantial illicit profits,” Asep said.

The KPK is currently tracing the flow of funds and identifying parties suspected of being involved in the fraudulent transactions. According to Asep, the financial losses from the fictitious sale and purchase of state land could be significant and pose a serious detriment to state finances.

The investigation is part of the broader KPK probe into alleged corruption surrounding the Whoosh project, which began construction in 2018. The anti-graft agency suspects that, aside from price manipulation, irregularities also occurred during the land procurement process at several points along the rail line.

Asep emphasized that the investigation would not affect Whoosh operations, which began in 2023. “Our focus is not on the project itself but on individuals who exploited it for personal gain,” he said.

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