Law

PT Morula Indonesia (Morula IVF), a subsidiary of PT Bundamedik Tbk (Bundamedik Healthcare System – BMHS), took a corporate action in 2022 by acquiring a majority shares in PT Medika Sejahtera Bersama (PT MSB), a company that manages the Pusura Mother and Child Hospital (RSIA Pusura) in Tegalsari, Surabaya. Referring to the provisions of the existing law, Morula IVF is obliged to report or provide notification of this corporate action to the Business Competition Supervisory Commission (KPPU) within a certain time limit. Unfortunately, the notification was made past the time limit. Morula IVF was then examined on suspicion of committing a violation. Morula IVF, interestingly, admitted to having committed a violation, and with that acknowledgement, KPPU decided to impose sanctions for the company.

The problems for PT Waskita Beton Precast Tbk (WSBP) is getting worse, as expected. We all know that towards the end of 2023, the subsidiary of PT Waskita Karya (Persero) Tbk (WSKT) is being sued by one of its creditors, PT Bank DKI. At the heart of the dispute is the decision to settle debts through Mandatory Convertible Bonds (OWK) which, supposedly, was not approved by Bank DKI. In early 2024, Bank DKI withdrew this lawsuit, only to file a new lawsuit in a different district court. The parties tried to mediate but to no avail. The trial continued far from the media coverage. Not long ago, we learned that Bank DKI won the lawsuit, but WSBP refused to surrender. The company filed for an appeal immediately.

It has been quite a while since the last time we reported on PT Visi Asia Media Tbk (VIVA), the parent of TVOne and part of Bakrie Group. Back then, we already knew that the company suffered too many losses already and since then nothing special happened, until the beginning of this year. One of VIVA creditors filed a lawsuit for Suspension of Debts Payment (PKPU) to the Commercial Court at the Central Jakarta District Court and requested that VIVA and several of its subsidiaries restructure their debts. This application was accepted and now the company is in the PKPU period, far from the media coverage. The process by far recorded verified debt amounted to over Rp8 trillion and the group now has until November 2024 to convince its creditors. In the midst of this process, VIVA filed another lawsuit against 14 parties, most of them are investment managers, and the court proceedings are ongoing.

President Joko “Jokowi” Widodo’s administration will end in a couple of weeks and as the end is near, several National Strategic Projects (PSN) that had not yet been completed were delegated to the responsibility of the new Government. As per July 2024, there are at least 43 PSNs whose construction will be continued.

The Corruption Eradication Commission (KPK) conducted years of investigation before finally announcing the case of alleged corruption at the Ministry of Manpower earlier this year. The case eventually ensnared several suspects including one Reyna Usman, a PKB...

The East Java High Prosecutors' Office (Kejati Jatim) has just named the former President Director of PT INKA, Budi Noviantara, as a suspect in a case of alleged corruption. Budi is suspected of being involved in the misappropriation of bailout funds intended to...

PT Atlas Resources Tbk (ARII) and its subsidiary PT Gorby Putra Utama (PT GPU) is unlikely to be free of problems any time soon. After going through several years full of lawsuits in Jakarta, last year we learned that the company has been in a prolonged dispute with...

In recent years we have seen several examples of poor management of pension funds (dana pension – dapen) for employees of State-owned Enterprises (BUMN). The case related to the Dapen Pertamina, for example, even ensnared high profile convicts, including Edward...

Back in 2018, the Corruption Eradication Commission (KPK) conducted a sting operation in North Sumatera and arrested the then Regent of Labuhanbatu, Pangonal Harahap (PDIP). Just like a lot of other graft cases, Pangonal received bribes from local contractors namely Effendy Sahputra (nicknamed Asiong Cobra). The trial ended in 2019. Effendy tried his luck the next year and filed for a Reconsideration (PK) but the attempt failed. Towards the end of January 2024, however, the KPK conducted another sting operation in the same regency and once again arrested the regent, this time Erik Adtrada Ritonga (NasDem). What caught our attention is the fact that the KPK also arrested Effendy and named him suspect as one of the bribers, just four years after he was sentenced. The inquisition and prosecution stage continued far from media coverage. Effendy had been found guilty for the second time and this week Erik was found guilty.

Since the beginning of this year, we have witnessed how the Business Competition Supervisory Commission (KPPU) has responded seriously to various alleged reasons that have resulted in unreasonable airline ticket prices. Towards the end of the year, KPPU finally came to a temporary conclusion that there was an alleged monopoly practice in the sale of fuel (avtur). After going through a long process, KPPU finally decided to start an investigation.