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.
Financial Relations between Central and Regional Governments
In the first week of this month, the Government and the House of Representatives agreed to ratify the Bill on Financial Relations between the Central and Regional Governments (HKPD) into a Law with a transition period of at least five years. The new Law made many changes, one of which is imposing levies on the palm oil sector.
Yudi Widiana Adia and Money Laundering
The Trans-Seram case ensnared dozens of individuals, including politicians from five different political parties. The last suspect was convicted in 2020. Yudi Widiana Adia (PKS), the last politician involved in the Trans-Seram corruption case, was found guilty in 2018. After nearly four years of investigation, Yudi faces a new trial as a money laundering defendant.
More on the Corruption in Kuansing
Over two months ago the Corruption Eradication Commission (KPK) arrested several parties, including the Regent of Kuantan Singingi (Kuansing) Andi Putra following a sting operation in Riau. The Regent is the sixth regional leader the KPK has arrested in 2021 and yet another Golkar politician embroiled in corruption. Note that the former Regent of Kuansing Mursini (PPP) was detained by the High Prosecutors Office (Kejati) on suspicion of corruption.
Tutut Soeharto v. Marga Nurindo Bhakti et al
It has been almost six years since we last heard of PT Marga Nurindo Bhakti (Marga Nurindo). The company, which is closely related to President Soeharto’s family, once had a dispute with the Government regarding the right to manage the Outer Ring Road South Section (Pondok Pinang-Jagorawi) (JORR-S Toll Road). The Company is in dispute again, but this time with its own shareholders. In early December 2021, the South Jakarta District Court registered two lawsuits filed by PT Citra Lamtoro Gung Persada (Citra Lamtoro) represented by Siti Hardiyanti Hastuti (Tutut Suharto). The first lawsuit was examined earlier this week.