Corruption Journal
The second batch of verdicts for the defendants in the case of corruption implicating PT Asuransi Sosial Angkatan Bersenjata Republik Indonesia (PT ASABRI) was read on Jan. 5, 2022. One of the judges who gave a dissenting opinion in the first batch of verdicts maintained his opinion. The defendants were found guilty. Separately, in the case of corruption involving Nurhadi, former secretary of the Supreme Court, the KPK has failed to hold him to account as the Supreme Court rejected the anti graft body’s cassation petition.
Corruption in the Land Office: Decisions
The Corruption Eradication Commission (KPK) announced progress on their investigation into the corruption involving former officials of the State Land Agency (BPN, or the Land Office) in West Kalimantan. The institution named two suspects, both suspected of money laundering. But the important case is somehow not attractive to the media. The inquisition process to the stage of prosecution continues far from media coverage. We learned that the two suspects had been found guilty.
ASABRI Scandal: The First Batch of Verdicts
The trials of the suspects involved in the PT Asuransi Sosial Angkatan Bersenjata Republik Indonesia (PT ASABRI) corruption scandal will be over soon. In contrast to the revelation of the case that seemed so extraordinary, the trials went along quietly. The matters examined in the trials were no longer of interest to the public, except when the Prosecutors decided they could indict one of the defendants, Heru Hidayat, with the death penalty. As if made to welcome the new year, four defendants, who were former ASABRI executives, were all found guilty in the hearing held on Jan. 4, 2022. Two other defendants will hear their punishment today.
2022 Outlook: PKPU and Bankruptcy
The number of lawsuits on Suspension of Debts Payment (PKPU) and bankruptcy has increased for the past three years. It doesn’t look like the trend will stop yet. Some want a moratorium as lawsuits become an alternative solution to the challenging, pandemic-induced business climate.
Problems in Peruri
At the end of November 2021, the Jakarta Metropolitan Police announced that it had uncovered a case of alleged corruption at PT Peruri Digital Security (PT PDS), a subsidiary of the State-owned money printing company Perum Peruri. In the announcement, the police also displayed Rp8.9 billion, confiscated and suspected of being related to the crime. The problems in Perum Peruri have been going on for a long time.
Problems Surround Nipress
The past few years have been difficult for PT Nipress Tbk (NIPS). Trading in the company’s shares has been suspended since 2020. The company is now on the verge of being delisted. The company and its subsidiaries also have to face several lawsuits on Suspension of Debt Payment (PKPU). In March 2020, a PKPU lawsuit against NIPS was granted. The company resolved the dispute amicably towards the end of 2020, but the situation did not last long. Towards the end of 2021, one of the creditors, PT Bank QNB Indonesia Tbk (BKSW), filed a lawsuit, seeking to cancel the peace agreement. What a mess.
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.