The latest scandal in the Corruption Eradication Commission (KPK), namely the case brokering scandal, entered a new chapter last month as the trial of the disgraced Mayor of Tanjungbalai (who used the service of the case broker) started. The KPK announced that it was investigating a case of corruption related to the regional career pattern system of Tanjungbalai. The disgraced Mayor allegedly demanded that several officials pay him to earn promotions. One of the bribers is the current regional secretary of Tanjungbalai. 

The Corruption Eradication Commission (KPK) has not been able to wrap up all of its cases quickly. The Trans-Seram graft case, which was first uncovered in 2016, is still on-going. Defendant Yudi Widiana Adia (PKS) is now being examined as a suspect on allegations of money laundering. Separately, the last two defendants in a case that was the result of the investigation into the Bakamla graft case were finally found guilty. 

The feud between Bambang Trihatmodjo, son of the late President Soeharto, and the Ministry of Finance continues. Bambang has filed four lawsuits in two different courts. He lost once, but he refuses to give up. This week, Bambang filed the fifth lawsuit, assisted by the same legal counsel. 

Towards the end of 2020, the Corruption Eradication Commission (KPK) held a Sting Operation and arrested dozens of individuals, including the Mayor of Cimahi Ajay Muhammad Priatna (PDIP). Ajay was immediately named a suspect for allegedly accepting Rp1.6 billion in grafts. On April 14, 2021, Ajay’s trial started and the proceedings lasted for four months. This week, Ajay was found guilty but the Panel of Judges only sentenced him to less than a third of the punishment demanded by the prosecutors.

Three years ago the Corruption Eradication Commission (KPK) conducted a Sting Operation in West Bandung. Six were arrested, and three were later named suspects, including then Regent of West Bandung one Abubakar (PDIP). Abubakar was declared guilty. Earlier this year, after months of speculation, on April 1, 2021, the KPK named the Regent of West Bandung Aa Umbara Sutisna (NasDem) a suspect for allegedly receiving bribes in the procurement of disaster emergency response goods or social assistance related to the COVID-19 pandemic. Sutisna denied the accusation to this day, stating that the case is politically motivated.

Eight months ago, the Corruption Eradication Commission (KPK) conducted a Sting Operation and arrested six people on suspicion of corruption involving the Ministry of Social Affairs. The KPK named several suspects, including then Minister of Social Affairs Juliari Peter Batubara. It took the KPK four more months to complete Juliari’s docket for prosecution. The proceedings lasted for another four months. On Aug. 23, 2021, the Panel of Judges declared Juliari guilty as charged. The punishment was heavier than what the prosecutors demanded, but several of the Judges’ considerations made the public furious.

The dispute between PT Media Property Indonesia (PT MPI, a part of Surya Paloh Media Group), and PT China Sonangol Media Investment (PT CSMI) and its holding CS Real Estate Pte Ltd continues. After facing two attacks from PT MPI, this week, CS Real Estate finally faced the public through their legal counsel, the prominent advocate Otto Hasibuan and explained the situation from their position. The explanation made it clear that there was a problem from the start of the parties’ cooperation.

The Indonesian Government will inject more capital (PMN) to seven State-Owned Enterprises (BUMN) in 2022. The allocated amount is less when compared to what the House of Representatives approved in July 2021. That said, it’s important to note that no PMN for 2021 has been executed as planned.

Referring to the Financial Note document in the 2022 State Budget Draft, the Indonesian Government noted that its tax reform agenda (policy changes and incentives) could increase tax disputes. Regulatory changes generally require time for comprehension to build. In such a phase, it is common to find differences in understanding between taxpayers and tax authorities. So the Government has begun to mitigate by, among others, improving the dispute resolution mechanism.

Satuan Tugas Penanganan Hak Tagih Negara Dana Bantuan Likuiditas Bank Indonesia (BLBI), a task force under Minister of Finance Sri Mulyani Indrawati’s supervision to recover funds from some businessmen related to 1997-1998 financial crisis, has stepped up pressures. The task force, established by President Joko Widodo through President Decree No. 6/2021 issued two interesting public announcements this morning.