Latest on the BLBI Scandal: Gondokusumo et al

Satuan Tugas Penanganan Hak Tagih Negara Dana Bantuan Likuiditas Bank Indonesia (BLBI), a task force under Minister of Finance Sri Mulyani Indrawati’s supervision to recover funds from some businessmen related to 1997-1998 financial crisis, continue giving pressures. The task force, established by President Joko Widodo through President Decree No. 6/2021, seeks to recover Rp4.89 trillion from Trijono Gondokusumo, former shareholder of PT Bank Putra Surya Perkasa (PSP), and Rp822 billion from Suyanto Gondokusumo (former owner of Bank Dharmala). Last week, the task force decided to confiscate a huge plot of land in Bogor supposedly related with Trijono. Interestingly, although several obligors decided to challenge the task force through legal measures, until now there has been no resistance from the Gondokusumo family.

Peace for Garuda Indonesia

State-Owned airlines PT Garuda Indonesia (Persero) Tbk, which has been in constant trouble for the past three years, will finally be able to breathe a little easier after the majority of its creditors approved the peace proposal they offered in the debt restructuring process (PKPU). However, there was a small obstacle that delayed the promulgation of the peace agreement by the Panel of Judges.

On the Geostationery Orbit Scandal : Suspects

Earlier this year, the Coordinating Minister for Political, Legal, and Security Affairs, Mahfud MD, announced that President Joko “Jokowi” Widodo had ordered an investigation into alleged violations of law in satellite management cooperation at the Ministry of Defense. The case supposedly cost the State around Rp800 billion. Before the announcement, the last time we reported on the subject matter was in 2018, when the Government was sued by one of its partners on suspicion of default. But something bigger than just a breach of contract is brewing: allegations of corruption. Five months later, earlier this week, the Attorney General’s Office (AGO) announced that it had named three suspects in the case. Now, the responsible sector is the Solictor General for Military Crimes.

On Corruption in Langkat : Trial of the Disgraced Regent 

The Corruption Eradication Commission (KPK) ‘s third sting operation in 2022 ensnared then Regent of Langkat, Terbit Rencana Peranginangin (Golkar). Terbit is the 16th regional head of North Sumatera embroiled in a corruption scandal in less than a decade. But Terbit’s arrest reveals crimes that are more horrific than “mere” corruption. With the help and support of many people, including his own son, Terbit has committed a gross violation of human rights for a long time and has consciously taken many lives. The crimes are being investigated by the police with the help of National Commission on Human Rights, while the investigation into the case of alleged corruption continues. On June 15, 2022, Terbit stands trial as graft defendant.

Legal Issues Surrounding Zulkifli Hasan

On June 15, 2022, President Joko “Jokowi” Widodo accompanied by Vice President, Ma’ruf Amin, announced their decision to reshuffle the officials in the Indonesia Maju Cabinet. A number of Ministers and Deputy Ministers were removed, and several new names were appointed. Among the newly appointed names, one name garnered attention, but for all the wrong reasons. He is Zulkifli Hasan, the general chairman of the National Mandate Party (PAN) who as of today is the minister of Trade replacing Muhammad Luthfi. Zulkifli is not a new name for Indonesian politics, but his name was previously associated with several major corruption cases. Although Zulkifli often denied it, the public did not believe him.

On Corruption in Penajam Paser Utara

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.

Foot and Mouth Disease and the Weak Importation Regulation (2)

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.

Foot and Mouth Disease and the Weak Importation Regulation (1)

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.

New Regulation on State-Owned Enterprises

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?

Corruption in Jakpro

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.

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