Entering the third week of 2022, the Corruption Eradication Commission (KPK) has shocked the public thrice with sting operations. The latest two happened in less than a week’s time. On the second sting operation, the KPK later named the Regent of Penajam Paser Utara, Abdul Gafur Mas’ud (Democratic Party), a suspect of corruption. The inquisition process revealed allegation that the corrupt money was used for the party’s needs. The trial of the key suspects started recently.

In the previous article, we have recalled the history of how Indonesia was able to eradicate the foot and mouth disease (PMK) and the allegations that accompanied the re-emergence of PMK in recent months, including issues related indirectly to the case of bribery which implicated the former Justice of the Constitutional Court, Patrialis Akbar. The case was linked to the problematic import regulation, which reminds us of the trade dispute filed by New Zealand backed by the United States against Indonesia to the World Trade Organization (WTO) eight years ago. As previously mentioned, we believe what is happening now is not as simple as the public thinks.

The foot and mouth disease (PMK) first entered Indonesia in 1887. The virus entered Indonesia along with cattle imported from the Netherlands. Since then, the history of the PMK outbreak has “colored” the livestock governance in Indonesia. With the hard work of various parties, in 1986, then Minister of Agriculture, Achmad Afandi, issued a Ministerial Decree declaring Indonesia free of PMK. Four years later, the World Organization for Animal Health (founded as OIE) issued an official statement that Indonesia was free of PMK. This long history has recently raised many questions, along with the spread of PMK in several parts of Indonesia.

On June 8, 2022, President Joko “Jokowi” Widodo has signed Government Regulation (PP) No.  23/2022 which amends PP No.  45/2005 which regulates the Establishment, Management, Supervision and Dissolution of State-Owned Enterprises (BUMN). In the midst of the spotlight on the rampant corruption within BUMNs, there are a number of interesting new provisions to note and especially raise the question, will the implementation of PP 23/2022 later be in line with expectations? Will the changes in regulation reduce problems within BUMNs?

Towards the end of 2021, the National Police’s Criminal Investigation Unit (Bareskrim POLRI) announced that they were investigating allegations of corruption at PT Jakarta Infrastruktur Propertindo (PT JIP), a subsidiary of PT Jakarta Propertindo (Jakpro)—-a company owned by city administration of Jakarta. The POLRI also announced that it had named two suspects in the case and had prevented them from traveling abroad. Recently, POLRI announced that they had confiscated several assets in an effort of assets recovery, interestingly, many of them are located in North Sumatera.

BLBI Task Force, established by President Joko ‘Jokowi’ Widodo to recover State funds used to assist troubled banks (BLBI) during the Asian financial crisis in 1997-1998, has summoned ten persons related to PT Indauda’s Rp328 billion obligations to the State. 

The Supreme Court has on June 9, 2022 ruled against the Corruption Eradication Commission (KPK) in the bribery case of Samin Tan, owner of PT Borneo Lumbung Energi & Metal Tbk (formerly BORN). BORN is parent company of PT Asmin Koalindo Tuhup (AKT), one of only few high-calorie (semi-coking) coal miners in Indonesia. 

Six years ago, when the DKI Jakarta province was still led by Governor Basuki “Ahok” Tjahaja Purnama, a scandalous case was made public. In 2015, to construct public housing flats, the Jakarta Housing Department had spent Rp648 billion to buy a parcel of land from a supposed civilian owner. It later turned out that the land belonged to the Department of Marine, Agriculture and Food Security (DKPKP) of the Jakarta Administration. The regional government apparently bought their own land. Earlier this year, the National Police’s Criminal Investigative Unit (Bareskrim POLRI) announced two suspects in this case. Recently, POLRI said they expand the investigation to allegation of money laundering and had confiscated numbers of assets worth Rp700 billion.

In August 2021, the Corruption Eradication Commission (KPK) announced the Banjarnegara Regent as a suspect of corruption. The revelation made headlines because the Regent, Budhi Sarwono, strongly denied all allegations. The trial started in January 2022 and KPK prosecutors indicted Budhi with two charges, i.e., receiving bribes and grafts. In one of the hearings, a witness confirmed the KPK’s allegations that the disgraced Regent received a sum of money in exchange for granting construction projects. During the last hearing held on June 9, 2022, Budhi was declared guilty of the first charge, but not guilty of the second charge.

Earlier this year, the Satgas BLBI (Satuan Tugas Penanganan Hak Tagih Negara Dana Bantuan Likuiditas Bank Indonesia), a task force under Minister of Finance Sri Mulyani Indrawati’s supervision to recover funds related to the 1997-1998 financial crisis, confiscated some of the assets on behalf of Irjanto Ongko, son of Kaharudin Ongko of Ongko Multicorpora. At the time, we also learned that the Police had named suspects in the case of alleged embezzlement of assets related to BLBI. The suspects, supposedly, are individuals in the Ministry of Finance had colluded with land mafias. We have been waiting for a detailed explanation on the allegation, but no further information was made public. Instead, we learned that Irjanto filed a lawsuit two days ago, challenging the Satgas’ decision on the confiscation of his assets. Irjanto is not the first to sue the process of confiscation related to the scandal.