Global Witness urges Korean authorities to probe Hyundai bribery case in Indonesia

In this July 2010 file photo, Greenpeace members and other activists protest near the Cirebon 1 coal-fired power plant in West Java, Indonesia. Hyundai Engineering & Construction is building another coal-fired power plant in the area. Courtesy of Greenpeace

By Jung Min-ho

Adam McGibbon

Global Witness (GW), a London-based activist group, wants Korean authorities to investigate Hyundai Engineering & Construction after the major Korean builder admitted bribing an Indonesian politician for a coal-fired power plant construction project.

“This is just the latest corruption scandal involving the Indonesian coal industry,” senior GW campaigner Adam McGibbon said.

“There is a full investigation happening in Indonesia around this incident. There must also be an investigation by the Korean authorities into Hyundai's payments, which raise serious legal questions.”

The comments come in response to The Korea Times' report that Hyundai officials in Indonesia gave hundreds of thousands of dollars to Cirebon Regent Sunjaya Purwadisastra through a broker to calm protesting residents over the construction in West Java.

Hyundai, one of three main contractors, is building the 1,000 MW Cirebon 2 coal-fired power plant there. Construction began in 2016 with finance from investors including KOMIPO, a subsidiary of the state-run Korea Electric Power Corporation, and is expected to be finished next year.

“Korean companies and Korean public finance institutions must now realize that they are putting Korea's international reputation at risk by funding dirty coal across the world,” McGibbon said. “Korean financial institutions must withdraw their finance for this tainted project.”