Law

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.

Abdul Gani Kasuba, governor of North Maluku, was arrested by the Corruption Eradication Commission (KPK) in a series of sting operations carried out in several different locations towards the end of 2023. The KPK succeeded in arresting dozens of people but named seven people as suspects in the case of alleged corruption. Among the alleged bribers was a director of PT Trimegah Bangun Persada Tbk (NCKL). In May 2024, KPK announced that they began an investigation of alleged money laundering and at the same time expedited the dockets to the stage of prosecution. The prosecutors suspect Kasuba received over Rp90 billion of grafts during his tenure. This week, the Panel of Judges finally declared that Kasuba is guilty.

Back in 2018, a plan was initiated to establish Bandung as a smart city. When Yana Mulyana (Gerindra) was appointed Mayor of Bandung in 2022, the program, Bandung Smart City, was still maximizing its CCTV services and internet services (internet service providers/ISPs). But the plan was tarnished with a case of alleged corruption. In 2023, Yana was found guilty. The investigation however did not stop there. In March 2024, the Corruption Eradication Commission (KPK) announced the development of the case and named five new suspects including four DPRD members. To everyone’s surprise, last week, three of the new suspects were re-inaugurated as DPRD members for the 2024 to 2029 term. But that did not last long. This week, KPK officially announced their development and immediately detained the new suspects.

It has been nearly a year since we last discussed the tradition of corruption in East Kalimantan, even though it was also a tradition for us to discuss this nearly every year for the past several years. The last discussion was towards the end of 2023 when there was a sting operation carried out by the Corruption Eradication Commission (KPK). This year, as if to continue the tradition, the KPK came with a new investigation on a different case of alleged corruption. There has been no further explanation regarding the case in question, but the KPK has searched the residence of Awang Faroek Ishak, the former governor of the province (now NasDem politician).

H. Jam’an Nurchotib Mansur or better known as Ustadz Yusuf Mansur has been in the public spotlight for the last few years, not because of the religious teachings he conveyed but because of the alleged problematic investments he offered. Yusuf has faced numerous lawsuits but he has avoided all of them, until June last year. The South Jakarta District Court partially granted the lawsuit filed by the victims on one of his businesses, at last. Soon after, a new lawsuit was registered to the Bogor District Court and after nearly a year of examination, last week, Yusuf lost the battle, again.

A case of alleged corruption has hit PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk (BJBR). The Corruption Eradication Commission (KPK) suspects that there are parties that have marked up advertising placement funds throughout the 2021 to 2023 budget years with an inflated amount reaching 100 percent. Reportedly, five individuals have been named as suspects. This news surprised many parties, but we know this is not the first time Bank BJB has had to deal with the law.

In the domestic aviation industry, we know that the public has been asking for years about the reasons why domestic plane ticket prices can be many times more expensive than flights abroad. Until now, there has been no answer that the public can understand. To make matters worse, stakeholders and policymakers seem confused by the small problems that must be solved. In this case, various allegations have emerged, including allegations of unfair business competition and monopolistic practices. Not long ago, KPPU conveyed what efforts have been made to resolve this problem.

Healthcare service provider, PT Bundamedik Tbk (Bundamedik Healthcare System – BMHS), kicked off its initial public offering in June 2021. Everything looks promising, but there are corporate actions that need to be explained further, that the company and its subsidiaries must face the Business Competition Supervisory Commission (KPPU). Last week, Bundamedik was found guilty of being late in notifying the takeover of PT Pintu Ilmu shares. Another examination is still ongoing.

Back in 2019, the Business Competition Supervisory Commission (KPPU) examined allegations on cartel-like practices related to soaring ticket rates and cargo transportation in the national aviation industry. The KPPU read its decision in 2020 amid the pandemic and declared the reported parties guilty, albeit not of cartel-like practices. In May 2024, the KPPU summoned the parties to ensure their compliance with the implementation of the decision, especially because similar situations, namely high domestic flight ticket prices, still occur. Towards the end of last week, KPPU announced that among the airlines examined along the process, only Lion Group wouldn’t comply with the decision of the Supreme Court. KPPU, therefore, took the initiative to commence an investigation on the group.

Earlier this year we reported that the State pharmaceutical firm PT Indofarma Tbk (INAF) is having a rough time. In addition to a series of losses over the years, the company also faces legal issues. By the time we wrote the report, Indofarma and its subsidiary PT Indofarma Global Medika (PT IGM) had faced three lawsuits demanding the company to restructure its debts (PKPU). However, the situation got worse in an instant as more lawsuits were filed and the company’s problems were finally revealed to the public, including that the officials of the company deliberately used the employees identity to apply for online personal loans which caused a debt of over Rp1 billion. This week, the Prosecutors’ Office announced their investigation.