Last year, Maria Pauline Lumowa, the key perpetrator in the misuse of PT Bank Negara Indonesia Tbk (BBNI)’s loan facility, was finally brought home for justice after being on the run for over 16 years. Her trial began earlier this year. The proceedings continue far from media coverage. On May 24, 2021, Maria Pauline Lumowa was found guilty. 

A little over a month ago the families of victims of the Sriwijaya Air flight SJ-182 that crashed on the Jakarta-Pontianak route filed a lawsuit against the Boeing Company. A couple of weeks after the lawsuit was submitted, the Federal Aviation Administration (FAA) issued an airworthiness notification for Boeing 737-300, 400, and 500 series based on information studied in the Sriwijaya Air flight SJ-182 crash investigation. The notice states unsafe conditions on board. Last week, the families and their legal representatives held a press conference. The situation reminds us of what happened over two years ago after the incident with Lion Air flight JT-610. 

Four years ago the Corruption Eradication Commission (KPK) announced that it had a new inquisition on a case involving State-Owned Insurance Company PT Asuransi Jasa Indonesia (Jasindo). The case concerns the provision of insurance services for the Upstream Oil and Gas Regulatory Body (BP Migas, now SKK-Migas). The KPK named Jasindo’s former President Director Budi Tjahjono a suspect, but the inquisition was stalled for over a year. The KPK resumed examination in July 2018. Budi was convicted in 2019. Two years later, the investigation continues. Towards the end of last week, the KPK announced new suspects in the case. 

In November 2019, Indonesian Customs officials uncovered a smuggling scandal involving executives of PT Garuda Indonesia (Persero) Tbk (GIAA). Four directors, including then-President Director Ari Askhara, were dismissed following the incident. Customs officials found similar Brompton luxury bicycle gear had entered Indonesia via the same flight that brought the Minister of Finance’s entourage back to Indonesia from Doha. Various speculations emerged. Few knew how the officials handled the situation, until a non-governmental organization filed a pre-trial lawsuit and demanded certainty in the examination of the case. The current narrative some are trying to build is that the smuggling is directly related to Minister Sri Mulyani.

Near the end of 2020, various media outlets began covering the proceedings faced by Kris Taenar Wiluan—then Executive Chairman and CEO of KS Energy Limited (SGX:578) (KSE)—and his aide. At the time, KSE announced that it would still keep Kris in his position, but a new problem emerged, and Kris filed his resignation. Two more resignation announcements followed. On May 19, 2021, Kris Wiluan finally pleaded guilty to three charges of market rigging.

In the morning of Feb. 27, 2021 the KPK surprised the entire country with a series of sting operations. It arrested several people, including Nurdin Abdullah, the then governor of South Sulawesi, who was once praised for his anti-corruption image and intellect. Nurdin is suspected of receiving bribes. The KPK only needed less than three months to finish the docket of the alleged briber. This week, the trial of the briber commences. The case is being examined in the Corruption Court of the Makassar District Court. 

PT Indosterling Technomedia Tbk (TECH) has had to face a lawsuit on Suspension of Debt Payment (PKPU) due to the High Yield Promissory Notes (HYPN) products issued by its subsidiary PT Indosterling Optima Investa (PT IOI). The company managed to resolve the dispute peacefully, but other problems still exist. The investigation into the allegations of default and fraud reported by the Company’s creditors is ongoing. The process with the police is likely to harm the continuation of the PKPU repayment process.

Bank Bukopin’s drama with Bosowa Corporindo continues. In the midst of the dispute, Bukopin announced that it would conduct a Rights Issue to strengthen capital structure and support business development.