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Capital injection in Gibran, Kaesang's business unreasonable: Economist

Tempo - January 12, 2022

Imam Hamdi, Jakarta – Two of President Joko Widodo's children, Gibran Rakabuming and Kaesang Pangarep, have been reported to the Corruption Eradication Commission (KPK) over alleged corruption and money laundering through their businesses that have ties to companies suspected of forest fires.

The companies through their affiliates deposited hundreds of billions of funds into Gibran and Kaesang's company in stages between February 2019 and November 2020.

"The investment value of a very, very unreasonable amount was disbursed for start-up culinary businesses owned by the President's children. The total investment value reached almost Rp100 billion," said Wakil Kamal, the attorney of Ubedilah Badrun as the case reporter, Tuesday, January 11.

Last November, the investor company's officials were also appointed as state ambassadors. "This confirms the alleged KKN (corruption, conspiracy, and nepotism)," Kamal added.

Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira assessed that the capital injection was unreasonable amid a sharp decline in the general business of food and beverages in the wake of the pandemic.

"So it's odd if a culinary business is injected with very large funding. It will raise a question on what basis investors do huge financing," said Bhima on Tuesday, January 11.

Some of their businesses also proved to run shortly, such as the martabak business owned by Kaesang. The economist recalled that the food business was aggressive in opening branches in a number of cities before it dimmed.

According to him, investors dared to provide huge capital for businesses of the president's sons because they did the calculation.

"Because it has entered the realm of politics, inappropriate funding can surely be related to the affiliation of entrepreneurs with power," he added. "The calculations will be different. It is not just business prospects anymore."

As quoted from Antara on Tuesday, January 11, Gibran Rakabuming Raka, who is now the Mayor of Solo, demanded the allegations be proven first and claimed ready to be detained if he is found guilty.

Source: https://en.tempo.co/read/1549143/capital-injection-in-gibran-kaesangs-business-unreasonable-economis