2022 Outlook: House of Representatives
The House of Representatives hasn’t changed much. Its legislative achievement is still far from the target. Throughout 2021, the House of Representatives worked in a limited capacity due to the pandemic. Its supervisory and budgeting duties were also affected because the number of physical attendance was limited. Towards the end of the year, several adjustments were made, including adjustments to the targets for drafting laws.
Government v. Agri Bumi Sentosa
The devastating 2019 forest fires still leave many problems. We know that the incident occurred simultaneously in several provinces in Indonesia’s western and central regions. In Kalimantan, fires occur almost evenly in oil-palm-producing areas, including South Kalimantan. Some of the companies and individuals accused were prosecuted after the fires were extinguished. The process continues to this day. Recently, we learned that the Ministry of Environment and Forestry had filed a lawsuit against one of the companies allegedly responsible for the forest fires in South Kalimantan, PT Agri Bumi Sentosa (PT ABS), a subsidiary of PT Jaya Agra Wattie Tbk (JAWA).
2022 Outlook: Corruption Eradication Commission
The Corruption Eradication Commission (KPK) under Firli Bahuri seems to have changed a lot. Sting operations, which became a sort of benchmark for eradicating corruption in Indonesia, have significantly decreased in number. Separately, the internal commotion that has been going on in KPK peaked in 2021, causing a nationwide uproar. A lot of homework remains done.
The Voluntary Disclosure Program (PPS)
Law No. 7/2021 on the Harmonization of Tax Regulations (UU HPP) brings many bold changes in the field of taxation. One of the most anticipated issues is also regulated in the new Law, i.e., the Voluntary Disclosure Program (PPS). The PPS program has been dubbed the second volume of Tax Amnesty. The Ministry of Finance recently issued the implementing regulation for the program, with the publication of Regulation of the Minister of Finance (PMK) No. 196/PMK.03/2021.
BUMN Achievements and Decisions
After going through two years full of difficulties due to the COVID-19 pandemic, State-owned Enterprises (BUMN) began to move forward in 2021. A series of corporate actions by Companies and its subsidiaries yielded very good results. This year, several holdings were formed. However, the Government is faced with various legal problems, apart from having to make difficult decisions, including voluntarily dissolving several troubled companies.
The Corruption in Jasindo: Prosecutors’ Demands
The Corruption Eradication Commission (KPK) first announced its investigation into allegations of corruption involving State-owned insurance company PT Asuransi Jasa Indonesia (Jasindo) over four years ago. The case concerns the provision of insurance services for the Upstream Oil and Gas Regulatory Body (BP Migas, now SKK-Migas). Two years ago the former President Director of Jasindo, Budi Tjahjono, was convicted, but the investigation continues. The KPK named new suspects earlier this year. Their trial is reaching the finish line.
PKPU for Gorby Putra Utama
It has been a while since the last time we reported on PT Atlas Resources Tbk (ARII). In 2018 the Company filed a tort lawsuit against Noble Group Limited (SGX:CGP) and several other parties. In 2019, the Company faced a lawsuit seeking its bankruptcy. In 2020, the Company faced a Suspension of Debt Payment (PKPU). Recently, we learned that a different PKPU lawsuit had been filed against a subsidiary of the company, PT Gorby Putra Utama (PT GPU).
Revision of the Law on Prosecutors’ Office
The Bill to revise Law No. 16/2004 on the Prosecutors’ Office was approved and passed into law at the plenary session in the first week of this month. The drafting this revision intensified after Joko Tjandra’s escape from law enforcement in 2020. The time needed for discussing the revision was relatively short. Of the many changes in the revised law, one has become a matter of debate: the authority of prosecutors to submit a Reconsideration (PK).
Corruption in Banjar
Towards the end of last week, the Corruption Eradication Commission (KPK) announced an investigation and inquisition into a graft case in West Java. The KPK named two suspects, including the former Mayor of Banjar, Herman Sutrisno. The KPK started its investigation after receiving a complaint from the NGO named Aksioma, led by the former Deputy Mayor of Banjar, Akhmad Dimyati, and Ajat Sudrajat.
Satgas BLBI v. Marimutu Sinivasan
Four years ago, the former chairman of Indonesia Bank Restructuring Agency (IBRA/BPPN) Syaf Temenggung was named a suspect by the Corruption Eradication Commission (KPK) for the issuance of release and discharge letter to tycoon Sjamsul Nursalim (Gajah Tunggal Group) related to the infamous Bank Indonesia liquidity support (BLBI). Three years later, Syaf was dramatically released and the investigation into Nursalim was dismissed. The Government ramped up its efforts in 2021 with its latest target being the Texmaco group. Last week the Government staged the seizure of nearly 600 assets belonging to the conglomerate. The Government forced Marimutu Sinivasan, who has been absent from the public for more than two decades, to appear and defend himself.