TEMPO.CO, Jakarta - Hermanto Dwiatmoko, director general of railways at the Transportation Ministry, denied allegations that members of his staff had received bribes from a Japanese transportation consultant. Hermanto said the Ministry has had a closed meeting to discuss the allegation. "It is now being handled by the Inspectorate General," he told Tempo.

AFP news agency reported that the Japanese government plans to suspend development aid to Indonesia over a possible bribe by Japan Transportation Consultants Inc. (JTC) to officials of the Indonesian railways directorate general.

The reports said that, from 2009 to 2014, JTC disbursed ¥160 million (approximately Rp18.4 billion) to three countries: Indonesia, Uzbekistan and Vietnam. In Vietnam and Uzbekistan, the financial aid has been frozen.

JTC helped with three railway projects in Indonesia. The company is suspected to have committed bribery practices in double-track construction projects in Cikampek-Cirebon, Kroya-Yogyakarta, and the electrification of Java's main line and the double double-track.

However, according to Hermanto, the ministry only works with the Japanese company for the 76-km Kroya-Kutoarjo double-track project. The cooperation did not go smoothly because the Japanese took a long time to make decisions. In the end, the government decided to fund a number of the track sections by issuing sukuks (Islamic bonds).

Indonesia Corruption Watch (ICW) researcher Firdaus Ilyas urged the Transportation Ministry to clarify the bribery allegation. "In the allegation in Vietnam is strong, it could also have happened in Indonesia," he said yesterday.

Corruption Eradication Commission (KPK) spokesman Johan Budi SP said that the antigraft body has not investigated the allegation. "We haven't heard of the news," he said.

PUTRI ADITYOWATI | KHAIRUL ANAM | MUHAMAD RIZKI