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.

The trials on the lawsuits for Suspension of Debt Payment (PKPU) against the textile giant PT Sri Rejeki Isman Tbk (SRIL or Sritex) continues. On May 6, 2021, the Panel of Judges granted the lawsuit filed by CV Prima Karya, despite rejections from other parties. A day prior, the lawsuit filed against PT Rayon Utama Makmur (PT RUM) was granted. The other lawsuit filed by PT Bank QNB Indonesia Tbk (BKSW) against an affiliated company was surprisingly rejected on May 10, 2021. But on the same day, another lawsuit was registered against the same company. So there are two ongoing temporary PKPU processes related to Sritex and one ongoing PKPU lawsuit. 

On May 10, 2021, a Sting Operation was reportedly held in Nganjuk, East Java. It was a joint operation between the National Police’s Criminal Investigation Unit (Bareskrim POLRI) and the Corruption Eradication Commission (KPK). Later on, the Bareskrim named several suspects, including the current Regent of Nganjuk Novi Rahman Hidhayat. This is the second time in the past three years that a regent of Nganjuk has been caught for corruption. The previous regent, Taufiqurrahman, was also arrested in a Sting Operation in 2017.