Category: Law

Waiting for the Omnibus Law: Employment Cluster

Two weeks ago, a Twitter account called Reformasi Dikorupsi listed several reasons why people should be aware of the Omnibus Law on Employment Creation—which they dubbed as UU Cilaka (adj. Cursed or Unlucky). Reformasi Dikorupsi is a forum formed by several elements of society in mid-2019. It developed along with the ratification of the amendment of the Law on Corruption Eradication Commission (KPK) and the news that the amendment to the Law on the Criminal Code would be passed. Since then, the organization often voiced opposition to various Government plans. 

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On the Corruption in the Ministry of Religious Affairs 

The Corruption Court of the Central Jakarta District Court finally wrapped up the trial of Romahurmuziy (Rommy), the former chairman of the United Development Party (PPP). Rommy was named a suspect of bribery after the Corruption Eradication Commission (KPK) arrested him in March 2019. Though Rommy was found guilty, he’s only sentenced to two years imprisonment. 

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Waiting for the Omnibus Law: Energy and Mineral Resources

Towards the end of last week, the Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso said that the academic paper and the draft of the Omnibus Law for Employment Creation would be submitted to the House of Representatives by January 21, 2020. That said, the public does not have access to the said draft. Meanwhile, CNBC Indonesia reported on things mentioned in the draft specifically related to energy and mineral resources.

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Developments on the Bengkalis Graft Case

Two years have passed since the Corruption Eradication Commission (KPK) announced their investigation and inquisition into the Bengkalis graft case. The last time the KPK announced progress was May 2019. At the time, the KPK named two new suspects, one of them is the Regent of Bengkalis one Amril Mukminin (Golkar). Towards the end of last week, the KPK (now under new leadership) announced a development. It had named ten new suspects.

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On Emirsyah Satar’s Case : The Trial

It has been nearly three years after the investigation on the corruption within PT Garuda Indonesia (Persero) Tbk began, and the wait is over. Three weeks ago, the Corruption Court at the Central Jakarta District Court began the trial of Soetikno Soedarjo, and the trial of Emirsyah Satar followed four days later. On January 16, 2020, the trial continues. 

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Latest on the BLBI Case: Reconsideration

The Supreme Court surprised the nation in July last year. The graft convict and former Chairman of Indonesia’s Bank Restructuring Agency (BPPN) Syafruddin Arsyad “Syaf” Temenggung was found guilty of corruption related to the disbursement of Bank Indonesia Liquidity Assistance (BLBI) to Bank Dagang Nasional Indonesia (BDNI). Nevertheless, the Supreme Court decided to release Syaf from all charges. The Corruption Eradication Commission (KPK) thus filed a Reconsideration (PK) petition against all debates on its legal basis. The PK hearing continues on January 16, 2020. 

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North Sulawesi v. Elly Lasut 

What is currently happening in North Sulawesi is very confusing because it has never happened before, but this is also evidence of several issues, including that regional governments have powers that still need to be monitored. For the first time in history, the North Sulawesi provincial government refused to inaugurate the Regent and Vice Regent-elect of the Talaud Islands regency one Elly Lasut and one Moktar Parapaga. Governor Olly Dondokambey (PDI-P) used the Supreme Court’s decision that was just read in December 2019 as the basis for his action. Meanwhile, legal experts sided with the Regional Election Commission (KPUD) and the results of the 2018 regional head elections. This situation forced the Minister of Home Affairs to immediately bring the parties together and hold a case expose on Jan. 15, 2020.

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Another Lawsuit on the Kalija Project

In late 2018, the Business Competition Supervisory Commission (KPPU) began examining the allegation of conspiracy in the construction of the Kalimantan-Java gas pipeline (Kalija I). Several months ago, the KPPU decided that the allegation cannot be proven. But it is interesting to see that in the second week of January 2020, the Central Jakarta District Court registered two lawsuits related to PT Kalimantan Jawa Gas. The lawsuits are interesting because the parties in it are the parties in a consortium who won the first tender auction for the project back in 2014. The KPPU decision briefly mentioned the chronology of the tender, but we have no idea that the dispute continues to this day. 

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The Jiwasraya Case and the Responsibilities of Public Accountants

The Ministry of Finance reacted to the PT Asuransi Jiwasraya (Persero) case. The Ministry of Finance is examining public accountants from two public accounting firms (KAP) who were Jiwasraya’s external auditors in the period of 2015-2017. The Indonesian Institute of Certified Public Accountants (IAPI) agrees with the suspicion that there was window-dressing in the Jiwasraya Financial Report. That said, the professional association stressed that its members were not involved in the incident. We should note that this allegation is not only related to financial statements in recent years. Provisional suspicion is that the problem in Jiwasraya has occurred since 2004. Many parties questioned why the public accountant did not find this problem even though it allegedly happened years ago.

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Benny Tjokro’s Antics

Surprising news broke on the evening of Jan. 14, 2020. The notorious Benny Tjokrosaputro had been detained. Benny was arrested after answering the Attorney General’s Office (AGO) ’s summon for examination related to the allegations of corruption involving State-owned insurance company PT Asuransi Jiwasraya (Persero). The AGO named him a suspect in the case. The AGO had detained four other prominent figures and named them suspects, but the public is focused on Benny.

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Jakarta Floods: Another Lawsuit against the Government 

Major floods hit Jakarta and parts of West Java in the first day of 2020. Although other areas in West Java were affected, public attention was centered on Jakarta, particularly on the channelization of the Ciliwung River, which has been delayed for several years. Blame was also assigned to the Governor of Jakarta Anies Baswedan for failing to conduct all measures necessary to prepare Jakarta’s water management infrastructure. Lawyers have decided to help flood victims by advocating a class action. 

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Update on the Jakarta Bay Reclamation Project 

By the end of 2018, the Governor of Jakarta had decided to stop the controversial Jakarta Bay reclamation projects. Several months later, PT Taman Harapan Indah, a subsidiary of PT Intiland Development Tbk (DILD), filed a lawsuit against the Governor. PT Taman Harapan Indah holds the reclamation license of Island H. The lawsuit had been granted by the Panel of Judges of the Jakarta State Administrative Court (PTUN), but the provincial government decided to appeal. However, the Jakarta State Administrative High Court (PTTUN) decided in favor of the previous decision. There are three other similar lawsuits filed by different developers of the reclamation project. The latest lawsuit was filed by PT Agung Dinamika Perkasa, who do not own any reclamation license, the decision on this lawsuit is scheduled to be read today, Jan. 14. Note that the subsidiary of PT Agung Podomoro Land Tbk (APLN) is only a partner of PT Jakarta Propertindo in the plan to build Island F. By far, interesting to see how PTUN decided to decline the lawsuit filed by PT Manggala Krida Yudha.

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