Caught in the KPK's Hand-Catch Operation, How Much Does the Krakatau Steel Director Earn?

The Corruption Eradication Commission (KPK) arrested Wisnu Kuncoro (WK), the Director of Technology and Production at PT Krakatau Steel Tbk, in a hand arrest operation (OTT) conducted on Friday (March 22, 2019). WK and three other suspects were caught by the KPK for allegedly committing bribery in one of the state-owned enterprise's projects.

Despite the substantial salaries of SOE directors, reaching hundreds of millions of rupiah per month, the desire for self-enrichment persists. According to Krakatau Steel's annual report, the total salary and allowances for the board of directors reached Rp 16.32 billion per year. This amount comprises Rp 11.44 billion in salaries, Rp 2.4 billion in allowances, and Rp 2.47 billion in post-retirement insurance.

If Krakatau Steel has 6 directors, the average monthly salary per director is approximately Rp 146 million/month; however, the CEO's salary is usually higher. This figure is obtained by annualizing the salary (Rp 11.443 billion) and dividing it by 6 directors, then further dividing by 13 months (12 months' salary + 1 month's performance bonus). This monthly salary does not include allowances and post-retirement insurance.