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Indonesia arrests eight immigration officials in US$8 million visa scandal

Corruption Eradication Commission (KPK) has taken eight senior immigration officials into custody, among them former Deputy Minister Silmy Karim, for extorting foreigners who are trying to obtain residency permits. This scandal, linked to 145.5 billion rupiah in illegal fees, poses a risk to foreign investment in Indonesia as the government continues to confront corruption challenges.

BRIC Team
BRIC Team
Jun 12, 2026 · 1 min read · 5 views

Key Takeaways

  • Eight senior immigration officials, including former Deputy Minister Silmy Karim, were arrested for extorting foreigners seeking residency permits.
  • The KPK's investigation uncovered a systematic extortion scheme that reportedly spanned from 2022 to 2026.
  • Officials allegedly amassed 145.5 billion rupiah, approximately US$8 million, through coercive fees from applicants.
  • KPK Chairman Setyo Budiyanto revealed that Karim received a weekly payout of 100 million rupiah for personal gain.
  • Analysts warn that this corruption scandal could further erode investor confidence in Indonesia's economy.

Indonesia's push for foreign investment and skilled labor took a hit with a corruption scandal involving immigration officials. The Corruption Eradication Commission (KPK) nabbed eight senior immigration officials, including former Deputy Minister Silmy Karim,accused of extorting foreigners seeking residency and work permits.

KPK's investigation found a widespread scheme running from 2022 to 2026 . Officials reportedly forced applicants to pay extra fees,totaling 145.5 billion rupiah (around US$8 million). Foreigners paid up to 1.5 million rupiah to speed up residency applications,under threat of delays or rejection .

KPK Chairman Setyo Budiyanto revealed Karim got a weekly 100 million rupiah payout. The money allegedly funded personal assets and businesses, like a towing company. Shows corruption's deep roots in Indonesia's immigration system .

Analysts call public-sector corruption in Indonesia an "open secret," urging government to boost transparency in visa processes. Scandal could shake investor confidence in Southeast Asia's biggest economy. Jakarta's plans for foreign funds and talent now face tougher questions…

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