Month: January 2017

E-KTP Case: How Far Up Can the KPK Go? (3)

The Corruption Eradication Commission (KPK) has on yesterday (Jan. 3) scheduled a questioning session for several of the witnesses in the electronic identity card (e-KTP) graft case. One of said witnesses is businessman Andi Agustinus a.k.a. Andi Narogong, who, according to Muhammad Nazaruddin (a graft convict and former Treasurer of Democratic Party) and his lawyer Elza Syarief, delivered cash to the tender committee of the e-KTP project, Irman (former director general at the Home Affairs Ministry and one of the suspects in the case), and those in the House of Representatives (DPR). Andi seems to be a key witness in this case. But who is he, really? Is he the real briber, or is he just a broker?

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Market & Inflation

Yesterday (Jan. 3), Vice President Jusuf Kalla opened the trading in the stock market. Only local investors dominated the transaction as many foreign investors remained on holiday. Trading value only reached Rp4.61 trillion, while the composite index of the Indonesia Stock Exchange (IDX) closed lower 0.4% at 5,276 yesterday.

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Adaro Shareholder Dies

Ir Subianto (otherwise known by his nickname Benny Subianto), partner of Edwin Soeryadjaya, Teddy Rachmat, and Boy Garibaldi Thohir in Adaro passed away earlier today (Jan. 4). Benny Subianto is survived by three daughters, one of whom is Arini Subianto, whose husband Andre Mamuaya (director at Adaro Energy) passed away in 2012.

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Perma No. 13/2016 on Corporate Crime

The Supreme Court finally published the long-awaited Regulation of the Supreme Court (Perma) to handle criminal offences committed by corporations. Perma No. 13/2016 specifically mentions that corporations can be a place to hide wealth that are proceeds of crime and thus left untouched by the law due to the legal vacuum on the issue. Indeed, the procedures and inspection guidelines against corporation as a criminal entity were not clearly regulated. And so the Supreme Court takes the role as the judicial power to fill the legal vacuum and provide guidelines for law enforcement officers in the handling of criminal cases committed by a corporations.

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Market: Domestic Investors Dominate

Today is the first trading day at the Indonesia Stock Exchange (IDX) for the year 2017. The composite index of IDX gained 15.32% during 2016, and many believe it will continue to gain this year on the back of domestic factors. Domestic investors are more optimistic, as reflected in their investment in capital market portfolios over last year.

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A Look Back on KPK’s Sting Operations (Part II)

Throughout 2016, the Corruption Eradication Commission (KPK) conducted dozens of Sting Operations (OTT) and expanded their investigations to more than 20 cases of corruption. Over 100 suspects comprised of State Officials, businessmen, and other parties were named. We summarized six OTT in the first article. In this second part, we summarize the 7th to the 12th OTT.

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Tax Amnesty & JP Morgan Chase Bank

The Finance Ministry (MoF) has, per January 1, 2017, taken out JP Morgan Chase Bank N.A. from its list of partners for the tax amnesty program. The MoF issued letter number S-10023/PB/2016 in Dec 9, 2016 to officiate the decision. After observing JP Morgan Chase Bank, the MoF believe that JP Morgan had interfered with the stability of the national financial system.

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Agus Yudhoyono’s Campaign

Agus Harimurti Yudhoyono, the son of the Sixth President of the Republic of Indonesia Susilo Bambang Yudhoyono (who is also the chairman of the Democratic Party), entered Jakarta’s 2017 gubernatorial race with a big sacrifice: his military career. The then Major of the Indonesian Army had to retire early for the sake of pursuing a career in politics. Much is at stake. It’s about Agus’ future, and to some degree, his father’s face. So far, however, survey figures place Agus on the lead. The research wing of a prominent national media outlet Kompas (Litbang Kompas), for instance, found Agus leading with 37.1% electability. But this lead is by no means significant enough to make the election Agus’ to lose. The question now is whether or not Agus can maintain/increase his electability with only weeks before D-day.

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Market: Better Year in 2017?

The stock market will start trading tomorrow (Jan 3), as today it is still closed for the New Year holiday. The Indonesia Stock Exchange (IDX) management reported on Friday last week that the composite index gained 15.32% last year, the 2nd best performer among the global indices, behind Thailand’s SET Index (+19.62%). The U.K. and U.S. indices 3rd and 4th with gains of 13.71% and 12.59% respectively.

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