PKPU for Biotis
The Commercial Court at the Central Jakarta District Court has just registered a lawsuit filed by a Chinese super conglomerate against PT Biotis Prima Agrisindo (PT BPA), the parent of PT Biotis Pharmaceutical Indonesia (PT BPI). The conglomerate is asking for the company to restructure its debt.
On the Geostationary Orbit Scandal: A New Chapter
Three weeks ago 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. This case supposedly cost the State around Rp800 billion. At the same time, the Attorney General’s Office (AGO) said it had commenced investigation into the case a week before the announcement. The examination of witnesses continues, but the Government refuses to remain silent. On Feb. 2, 2022, the Central Jakarta District Court registered a new resistance lawsuit filed by the Ministry of Defense against the order for execution of the Singapore arbitration award in favor of Hungary-based Navayo Research Ltd.
Revisiting the West Cengkareng Land Mafia Case: Suspects
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. This week the National Police’s Criminal Investigative Unit (Bareskrim POLRI) announced two suspects in this case.
Corruption in Buru Selatan
Last week, the Corruption Eradication Commission (KPK) named suspects in the case of bribery related to the procurement of goods and services in the Buru Selatan regency, in the province of Maluku. The announcement was made after an investigation into the allegations of crimes committed during the tenure of former Regent Tagop Sudarsono Soulisa (PDIP). Tagop served for two periods from 2011 to 2021. Tagop allegedly received Rp10 billion in bribes. The KPK also named Tagop a suspect of money laundering. We are expecting to see more details unfold.
On the Pani Gold Project: Merdeka, Provident, and Lion Selection Deal
The dynamics of problems that accompany the management of the Pani block deteriorated in recent years. But towards the end of 2021, the dispute, which was originally to be examined through arbitration in Singapore, was successfully resolved without going through a legal process. A month later, the Lion Selection Group (ASX: LSX), which owns shares in PT Pani Bersama Jaya (PT PBJ), stated that it would sell its share in PT PBJ to PT Merdeka Copper Gold Tbk (MDKA) and Andalan International Pte Ltd (Andalan, an entity controlled by Provident Capital). Payments will be made in stages in cash and in the form of shares in MDKA. Thus, Lion Selection is to become a shareholder in MDKA.
Corruption in Kolaka Timur
The Corruption Eradication Commission (KPK) only conducted five sting operations in 2021. One of them is the sting operation that caught the Regent of Kolaka Timur, Andi Merya Nur (NasDem). Recently, the KPK announced the result of the investigation and named Andi Merya a suspect for allegedly bribing an official at the Ministry of Home Affairs. At the heart of the case is the Regent’s attempt to take advantage of the National Economic Recovery (PEN) funds handed to regions for overcoming difficulties due to the COVID-19 outbreak.
More Problems surrounding PICO
Last year, we reported on several legal issues faced by PT Pelangi Indah Canindo Tbk (PICO), a cylinder tank manufacturer. In addition to the lawsuit on Suspension of Debt Payment filed against the Company, the Company is also in dispute with one of its creditors in two different courts. The problems do not end there. Until two weeks ago, PICO was involved in seven lawsuits registered in three different courts, but all the lawsuits are related to each other.
On Garuda Indonesia’s PKPU
PT Garuda Indonesia continues to show commitment to its creditors in the Suspension of Debts Payment (PKPU) process. Last week, the PKPU process was again extended for another 60 days. Garuda Indonesia has until March 21, 2022 to compile their peace proposal.
On Tax Corruption Scandal: A New Trial
We began 2021 with a corruption case involving tax officials. The allegation was scandalous. Officials had allegedly transacted and helped three large companies avoid their tax obligations. One of said companies was owned by the notorious Haji Isam. After several months of speculation, the Corruption Eradication Commission (KPK) announced the suspects, but nothing really interesting happened in the trial of suspect Angin Prayitno Aji. Later, the KPK named two new suspects; both were employees of the Directorate General of Taxation. The inquisition of the two suspects progressed rapidly. The details mentioned in the latest indictment is even more shocking than the predicate crime. One of the suspects allegedly laundered money with the help of his son.
KPK’s Corporate Suspect: The Trial of PT Merial Esa
In 2016, the Corruption Eradication Commission (KPK) successfully cooperated with the Supreme Court and ratified the Supreme Court Regulation (Perma) No. 3/2016 on the procedures for examining cases involving corporations. According to the Perma, companies involved in cases of corruption can be held accountable. In 2017 the KPK named the first corporation suspect and to date, seven companies have been named suspects. Nevertheless, the inquisition process is more difficult than expected.