On the BLBI Scandal : Chasing Kaharudin Ongko
Satuan Tugas Penanganan Hak Tagih Negara Dana Bantuan Likuiditas Bank Indonesia (Satgas BLBI), a task force under Minister of Finance Sri Mulyani Indrawati's supervision to recover funds related to the 1997-1998 financial crisis, has issued summons through public...
Helice Leasing v. Garuda Indonesia : Garuda’s Defeat
The past few years have been difficult for PT Garuda Indonesia (GIAA). It has to face internal strife, lawsuits, and a financial crisis due to the COVID-19 outbreak. By the end of January 2021, a United Kingdom (UK) High Court decided to grant Garuda’s application for a stay of proceedings related to one of the lawsuits. Recently, the London Court of International Arbitration granted the arbitration petition filed by two of Garuda’s lessors. A bankruptcy lawsuit previously filed against Garuda was also withdrawn.
Sorong Plantation Dispute
The West Papua provincial government with the Corruption Eradication Commission (KPK) have evaluated the licensing of oil palm plantations in eight regencies since 2018. On Feb. 25, 2021, the KPK delivered the evaluation result in a press conference. The government then implemented the recommendation and revoked the concession license held by 12 companies. Last month, several companies operating in the Sorong Regency fought back. They filed lawsuits against the Regent.
Termination of Investigation on Pelindo II
The Government plans to combine four state-owned port operators with PT Pelabuhan Indonesia (Pelindo) II (Persero) as the holding entity. The plan is to go ahead with the plan in October 2021. Meanwhile, the Attorney General’s Office (AGO) has decided to terminate its investigation and inquisition into Pelindo II. The AGO said it had not found sufficient evidence to name any suspect.
On Corruption in Indramayu: New Trials
In October 2019, the Corruption Eradication Commission (KPK) conducted a sting operation and uncovered an outrageous corruption scheme in the regency of Indramayu in West Java. KPK then arrested several people including then Regent of Indramayu one Supendi (Golkar). Tthe trial started in December 2019 and lasted until mid-2020. All defendants were found guilty, however, the KPK did not stop investigating. Towards the end of the year KPK named former member of the West Java DPRD Abdul Rozaq a suspect. Over six months later, on April 15, 2021, KPK named more suspects in the case, both of whom were Abdul Rozaq’s colleagues during his tenure in West Java DPRD. We have to wait for another five months before the trial of the latest defendants starts.
Taxing Transactions through Electronic Systems (10)
The Ministry of Finance has been expanding the tax base by appointing new collectors of Value Added Tax (VAT/PPN) for digital products in trading through the electronic system (PMSE). The number of collectors continues to increase. The Ministry recently appointed two new collectors, and by September 2021, there are already 83 companies with the same set of responsibilities.
Corruption Journal
It’s been a busy month for the Corruption Eradication Commission (KPK). Along with the revelation of the corruption case in Probolinggo, the trial for the suspect Novi Rahman Hidhayat, the disgraced regent of Nganjuk, began. Hidayat is suspected of committing crimes similar to those revealed in Probolinggo. The KPK also announced the Banjarnegara Regent as a suspect in another corruption case.
Law Journal
A noteworthy lawsuit was registered at the Commercial Court at the Central Jakarta District Court last week. The one being sued is Antonius Vidi Kamadjaja. The one seeking Anton’s bankruptcy is Robert Tantular. It’s Robert’s second attempt after his first lawsuit was denied. Separately, the Attorney General’s Office (AGO) has to face another lawsuit related to the handling of a corruption case. The lawsuit was filed by PT Inti Agri Resources Tbk (IIKP).
A New Chapter of the Jiwasraya Graft Case
Over three months ago we witnessed the trial of 13 corporate suspects in the corruption case involving State-owned insurance company PT Asuransi Jiwasraya (Persero). In the evening of Aug. 16, 2021, after listening to the objections of several defendants, the Panel of Judges decided to annul the indictment of the case, demanding the prosecutors to submit the dockets separately for each company. At first, the Attorney General’s Office (AGO) objected to the decision and said that they will file a resistance to the decision. Nothing much can be done. The AGO thus accepted the decision and re-registered the dockets of the corporate suspects one by one.
Corruption in Probolinggo and Similar Cases
The weakness of the career pattern system for Civil Servants (PNS/ASN) has been repeatedly exploited by regional leaders as a source of side income. Some regional leaders have been convicted for receiving bribes. That said, the punishments have not provided a significant deterrent effect. The Corruption Eradication Commission (KPK) has already arrested several regional leaders in similar cases this year. The most recent being the case involving the Regent of Probolinggo in East Java. There have been seven cases of positions trading in the past five years, including the one uncovered last week.