Key facts
- Indonesia's Corruption Eradication Commission (KPK) arrested eight high-ranking immigration officials, including former deputy minister Silmy Karim.
- Nine visa agents were also detained for acting as intermediaries in an alleged extortion scheme.
- The scheme, running from 2022 to 2026, reportedly collected over $8 million (145.5 billion rupiah) in "extra fees" from foreigners.
- Foreigners paid up to $82 to speed up residency permit processing, facing delays or rejections otherwise.
- Silmy Karim allegedly received a weekly payment of 100 million rupiah (approximately $5,500).
- The illicit funds were allegedly used for personal assets and business ventures.
A significant corruption scandal involving alleged extortion by high-ranking immigration officials could jeopardize Indonesia's aspirations to attract foreign investment and skilled workers. The nation's Corruption Eradication Commission (KPK) arrested eight senior immigration officials, including former deputy minister Silmy Karim, on suspicion of running a systematic scheme to extract "extra fees" from foreigners seeking residency and work permits.
From 2022 to 2026, the accused allegedly collected a total of 145.5 billion rupiah (approximately US$8 million) from applicants. Foreigners were reportedly charged up to 1.5 million rupiah (about US$82) to expedite their permit processing, with the threat of delays or rejections if the fees were not paid. KPK Chairman Setyo Budiyanto stated that Silmy Karim personally received a regular weekly allocation of 100 million rupiah (around US$5,500).
Investigators revealed that the collected funds were used to acquire personal assets and establish businesses, such as a towing company, indicating the "systematic" nature of the operation. The scandal risks further damaging investor confidence in Southeast Asia's largest economy.