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Indonesian Oil Regulator Arrested in Corruption Probe

FILE - Rudi Rubiandini, head of Indonesian energy regulator SKKMigas, March 6, 2013.
The head of Indonesia's energy regulator has been arrested for allegedly taking bribes from an oil company.

The Corruption Eradication Commission (KPK) says SKK Migas Chairman Rudi Rubiandini was taken into custody after allegedly receiving a $400,000 cash bribe at his home in Jakarta.

KPK spokesman Johan Budi says a full investigation is underway.

"In the process of arresting Rudi Rubiandini, KPK investigators confiscated around $400,000 in U.S. currency. We are investigating this further. Later we also found more cash in U.S. currency. We are still counting the money," he said.

Two other individuals, at least one of whom works for an unnamed oil firm, have also been arrested in the case.

Another spokesman for the energy regulator, Elan Biantoro, says the case will not affect operations.

"There is no change whatsoever ... This Special Task Force has a number of leadership units. Mr. Rudi has one deputy and seven deputy level directors. These deputies oversee different strategic areas, like finance, operational, planning, commercial, internal oversight, and secretariat. We have standardized business processes, so everything runs normally in the absence of the chief," he said.

Analysts say the case could deal a blow to Indonesia's attempts to attract more foreign energy companies. Widespread corruption is seen as a major problem in Indonesia, which has been waging a high profile battle against graft.

This report was produced in collaboration with VOA's Indonesian Service

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