(Oct 18): The arrest of a senior executive at Lippo Group, one of Indonesia’s leading business conglomerates, has thrown into doubt the future of a major development project touted as the “Shenzen of Indonesia.”

The nation’s Corruption Eradication Commission, known as KPK, this week detained the Lippo director, along with another employee, two consultants and government officials from the Bekasi regency in West Java province in a bribery case related to development of the project. It is called Meikarta.

“Given all these headlines regarding permits issues, we are concerned about the sustainability of the Meikarta project, both from sales as well as funding concern,” Trung Nguyen, a senior credit analyst at Lucror Analytics, wrote in a report.

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