Month: January 2017

The End for Sutanto and Memi?

On September 17, 2016, Sutanto with his wife Memi and his brother Willy Sutanto was arrested by KPK shortly after handing over a sum of Rp100 million the residence of the then chairman of the Regional Representative Council (DPD) Irman Gusman in Jakarta. In the afternoon, the KPK directly named Irman, Xaveriandy Sutanto and Memi as a suspect. Willy was released. It took the Corruption Eradication Commission (KPK) less than 2 months to finish the docket of investigation of the suspects. On October 28, 2016, two docket of the case was transferred to the stage of prosecution and registered in the Corruption Court at the Central Jakarta District Court. The lawsuit against Sutanto and Memi was registered under case No. 113/Pid.Sus-TPK/2016/PN.Jkt Pst and the lawsuit against Irman Gusman was registered under case No. 112/Pid.Sus-TPK/2016/PN.Jkt Pst. On November 8, 2016, the court held the first hearing of the two cases.

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E-KTP Case & Novanto’s Future

The Corruption Eradication Commission (KPK) initially scheduled an examination of Setya Novanto, the chairman of Golkar Party as well as the speaker of the House of Representatives (DPR) for Wednesday (Jan. 4). It should’ve been Novanto’s second examination session as a witness in the electronic identity card (e-KTP) graft case. But Novanto failed to answer the summon because he’s still in his holiday trip abroad.

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Market & the 15th Economic Policy Package

The Coordinating Minister for Economy Darmin Nasution revealed on Wednesday (Jan 4) that the Government would soon launch the 15th Economic Policy Package with aim of maintaining the momentum of structural reform and boosting investment. This policy will focus on further reducing the average dwelling time in port.

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Cabinet Reshuffle Talks & Jokowi’s Consolidation

In the 2017 Political Outlook series we published in December last year, we mentioned that it was possible President Joko “Jokowi” Widodo would conduct another round of cabinet reshuffle. The President could be compelled to do so, we believe, if he were to grow increasingly dissatisfied with the performance of the current members of the Working Cabinet. The President would also weigh in the importance of having 2017 as the year of stability. We’re only a few days into 2017, and sure enough, political parties have already begun talking about cabinet reshuffle.

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Evergreen & Bumiputera (2)

Mission impossible! That’s the most common comment from people in financial industry about the proposed restructuring of AJB Bumiputera, pioneer of life insurance in Indonesia. But, that’s probably why it is interesting to watch, given actors involved in the process.

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Update on Power Plant Projects

On Dec. 29, 2016 Asti Holdings Limited, a small company listed on the Singapore Exchange (SGX) with total assets of S$139.4 million as of June 30, 2016, entered into a sale and purchase agreement (SPA) for the acquisition of 55% of PT Cahaya Sakti, an independent power producer (IPP), with some power plant projects in Indonesia.

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Recognition of Customary Forest

Towards the end of 2016, President Joko “Jokowi” Widodo gave a very precious gift for indigenous people and customary communities in several regions in Indonesia: the recognition of the existence of customary forests. The recognition is given in the form of Decree on Establishment of the Inclusion of Customary Forest and Customary Forest Determination Letter to 9 customary communities in the State Palace. What does this recognition mean for the related parties?

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On Ahok’s Judicial Review

The incumbent Governor of Jakarta Basuki “Ahok” Tjahaja Purnama filed a request for a Judicial Review of Law No. 10/2016 on the amendment of the Law on Regional Elections to the Constitutional Court since August 2016. The petition focuses on questioning the constitutionality of the Law that requires the incumbent to take a temporary leave from office during campaign period. But despite having months of hearings, the Constitutional Court (MK) have not yet concluded on their examination. Some are wondering what’s taking the MK so long in deciding on the matter.

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Jakarta’s Gubernatorial Election & Jokowi’s Consolidation

The Jakarta Metropolitan Police continues their investigation into the treasonous plot they’ve recently uncovered. One of the witnesses the Police examined is Gde Sardjana, the husband of Sylviana Murni. Sylviana Murni is the running mate of Susilo Bambang Yudhoyono’s (SBY) son Agus Harimurti Yudhoyono in Jakarta’s gubernatorial race. In the meantime, the National Police’s Criminal Investigation Division (Bareskrim POLRI) has just named Bambang Tri Mulyono, the author of “Jokowi Undercover”, as a suspect of slander.

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Corporate Actions to Watch

Cigarette producer Bentoel Internasional Investama (RMBA) has paid Rp12 trillion debt to Rothmans Far East B.V., funded by its rights issue proceeds (Rp13.99 trillion). The Company also allocated some Rp1.98 trillion as loan to its subsidiary, PT Bentoel Prima. Bentoel Prima is among the entities of RMBA which are in operations, including PT Bintang Boladunia, PT Perusahaan Dagang Suburaman, PT Perusahaan Dagang dan Industri Tresno, and PT Bentoel Distribusi Utama. Seven other entities of RMBA are not in operation.

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