After nearly two years of investigation and inquisition, the defendants’ trials in the case of corruption involving PT Asuransi Sosial Angkatan Bersenjata Republik Indonesia (familiarly known as PT ASABRI) began earlier this week. The Attorney General’s Office (AGO) initially named nine suspects in the case, but one of the suspects passed away near the end of the inquisition stage. So the prosecution stage started with only eight defendants, three of whom are also indicted for money laundering. The indictments detail the scheme.

The court examination into the corruption case that brought down former minister of social affairs Juliari Peter Batubara will soon end. Several weeks ago the prosecutors read their demands for Juliari. Near the end of last week, the prosecutors read their demands for...

In the first week of June 2021, the Jakarta State Administrative Court (PTUN Jakarta) registered a lawsuit filed by PT Toshida Indonesia, a mining company located in Southeast Sulawesi. The Company sued the decision made by the Minister of Investment (Head of the Investment Coordinating Board – BKPM). A week later, the Southeast Sulawesi High Prosecutor’s Office (Kejati) announced that its investigation of the Company had been escalated to the stage of inquisition. It named four suspects of graft, including two executives of the Company and two former regional officials. Three suspects filed pre-trial lawsuits. One lawsuit was denied, but the pre-trial lawsuit filed by the President Director of PT Toshida was granted. The Kejati has reportedly asked the Corruption Eradication Commission (KPK) for assistance to help resolve the issue.

Earlier this year, we reported that a lawsuit on Suspension of Debt Payment (PKPU) was filed by PT Acset Indonusa Tbk (ACST) against PT China Sonangol Media Investment (PT CSMI) had been granted. PT CSMI, which is currently building “INDONESIA 1”, entered its period of PKPU. The process lasted until March 2021, before the parties decided to end it peacefully. In July 2021, PT CSMI took corporate actions without notifying its shareholder PT Media Property Indonesia (PT MPI), a part of Surya Paloh Media Group. PT MPI submitted a police report on an allegation of embezzlement. A month later, it decided to take the dispute to court. On Aug. 10, 2021, the Central Jakarta District Court registered a lawsuit filed by PT MPI, who accuses PT CSMI of default.

In March 2021, the Corruption Eradication Commission (KPK) investigated the allegations of corruption in the arrangement of excisable goods managed by the Concession Agency (BP) in the Bintan Free Trade and Free Port Zone (FTZ) (BP Bintan). The KPK said that the BP Bintan case was already in the inquisition stage, so there should already be a suspect. However, the current KPK leadership is not as eager to announce the suspect’s identity compared to the previous leadership. It took the KPK four more months to finally arrest and announce the suspects, one of whom is the Regent of Bintan Apri Sujadi (Democratic Party).

Several months ago, the Commercial Court of the Central Jakarta District Court registered a lawsuit against PT Indonesia Power, a subsidiary of PT Perusahaan Listrik Negara (Persero) (PT PLN). The lawsuit was filed by Liliana Wibisono, the chief of Kinarya Liman Margaseta Consortium (KKLM). It seeks Indonesia Power’s bankruptcy. The lawsuit was withdrawn a month later, but we know that this is a complicated dispute. The South Jakarta District Court examined a different lawsuit. The district court eventually decided in favor of Indonesia Power. However, the Supreme Court later decided to annul the decision and declare that Indonesia Power had defaulted. Indonesia Power refused to accept the decision. It filed a Reconsideration, while Liliana filed another bankruptcy lawsuit. 

Richard Joost (RJ) Lino, the former CEO of State-owned port management company PT Pelabuhan Indonesia II (Persero) (Pelindo II), who is a suspect of corruption, finally faces his trial. The Corruption Eradication Commission (KPK) believes that Lino is guilty despite the controversies.

The Corruption Eradication Commission (KPK) is not done with Jambi. A corruption case in the province was uncovered a few years ago. Dozens of people have been convicted, including the disgraced Governor Zumi Zola. That said, the KPK has not stopped developing its investigation. After naming four new suspects two months ago, towards the end of last week, the KPK announced one new suspect.

Last week the public was shocked by the news that politician Emir Moeis was made a commissioner of PT Pupuk Iskandar Muda (PT PIM), a subsidiary of State-owned PT Pupuk Indonesia (Persero), in February 2021. Emir was convicted of graft in the Tarahan corruption case. Many see this as Minister Erick Thohir breaking his promise to bring about change in State-Owned Enterprises. The Minister had boasted about the “Mental Revolution” slogan of President Joko “Jokowi” Widodo. Yet, he appointed a former graft convict when he could’ve appointed others with a better track record.

The domestic textile industry is struggling, but PT Pan Brothers Tbk (PBRX) takes the problem to another level. The pandemic has taken a toll on the Company’s performance just like other companies in the same industry. The situation deteriorated when one of the Company’s executives was examined as a witness in a corruption case involving State-owned insurance company PT Asuransi Jiwasraya (Persero). In the last week of May 2021, PT Maybank Indonesia Tbk (BNII), filed a lawsuit on Suspension of Debt Payment (PKPU) against Pan Brothers but the lawsuit was denied. Earlier this week we learned that Maybank decided to file another lawsuit, this time seeking Pan Brothers’ bankruptcy.