Tax Corruption: Travel Ban and Allegations
Last week was filled with a lot of speculation due to the Corruption Eradication Commission (KPK) announcement that it was carrying out an inquisition on suspicion of bribery against the Directorate General of Taxation officials. Two officials reportedly have been named suspects, and six people have been banned from traveling abroad, some of whom are tax consultants. Towards the weekend, names of three companies appeared as companies suspected of being implicated in this case, thanks to the report from Tempo Magazine. One of the companies in question has a red thread with the two articles we published earlier.
The Dispute on the Matoa Golf Course
PT Saranagraha Adisentosa (PT SAS), which runs the Matoa Golf Course & Country Club in Ciganjur, South Jakarta, had filed a lawsuit against the Indonesian Air Force Main Cooperative Union (INKOPAU) to the South Jakarta District Court. At the heart of the dispute is a land management contract. What happened?
Tax underpayment bribery cases
The Corruption Eradication Commission (KPK) has named six suspects in the bribery cases implicating three companies: PT Bank Panin Tbk (PNBN), PT Gunung Madu Plantation (GMP), and PT Jhonlin Baratama—-contractor of coal miner PT Arutmin Indonesia, subsidiary of Bumi Resources (BUMI). The three companies are among bribery cases in the examination of tax underpayment at 165 companies.
Corruption in the Airlangga University Hospital: The Trial
The investigation into the case of corruption in the procurement of medical equipment for the Tropical Infectious Hospital at the University of Airlangga has been going on for too long. Suspects were named in 2015, but we did not hear any progress for a long time until recently. On March 4, 2021, after five years of inquisition, one of the suspects’ trials started.
Demands for Joker
Joko Tjandra’s appearance last year caused a stir and led to investigations on three new cases, two of which were investigated by the POLRI. The cases are one general crime namely case of alleged forgery and obstruction of justice, the other is a specific crime namely case of alleged bribery. Towards the end of the same year the East Jakarta District Court had convicted all defendants in the case of forgery. Meanwhile, a corruption examination began in November 2020. Joko Tjandra and two police generals alongside his friend Tommy Sumardi are the defendants. On March 4, 2021, the prosecutors read their demands for Joko.
Deja Vu: Tax Corruption & Coal Miner (2)
Some of you might still remember Gayus Tambunan, tax officer who reportedly got US$2 million for his service in helping out Bumi Resources (BUMI) and its coal operating subsidiaries PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia. Gayus was tax officer who reviewed and examined objections filed by taxpayers at directorate general tax, ministry of finance.
Corruption in Bintan and Directorate General of Customs and Excise
The Corruption Eradication Commission (KPK) has not only conducted Sting Operations. It has also developed investigations that have been running for a long time. Recently, the KPK stated that it was investigating allegations of corruption related to the Directorate General of Taxation (DJP) and allegations of corruption related to 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 stage of inquisition. So there should already be a suspect, but the current KPK leadership is not as eager to announce the suspect’s identity as the previous leaderships.
Corruption in South Sulawesi: Makassar New Port
Nurdin Abdullah, governor of South Sulawesi and the icon of anti-corruption, was arrested along with five other people as the Corruption Eradication Commission (KPK) conducted a series of Sting Operations on Feb. 27, 2021. He was named a suspect later on the same day and was immediately detained. The KPK used a construction project as an entry point in uncovering the corrupt scheme. Since the arrest, many have demanded the KPK to also investigate the construction of the Makassar New Port.
Bribery Case at Tax Office: Which coal miner?
The Corruption Eradication Commission (KPK) is investigating a bribery case implicating high-ranking officials at directorate general of taxation, ministry of finance, and one coal mining company located in Kalimantan and owned by famous businessman known for strong political connection. Tax consultant for the coal mining company reportedly paid Rp30 billion of bribery to the tax officials.
Omnibus Law: Investment in the Alcoholic Beverages Sector
In February 2021, President Joko “Jokowi” Widodo issued Presidential Regulation (Perpres) No. 10/2021 concerning the Business Sector for Investment, one of the implementing regulations for Law No 11/2020 concerning Job Creation. This Perpres, as the title suggests, regulates business sectors that are open to investment with special requirements. Of the 46 business sectors mentioned, three of them are about alcoholic beverages. A month after the Perpres was issued, news emerged that the President had legalized the sale of alcoholic beverages. The Perpres was dubbed the “Perpres Miras”. Resistance quickly spread on religious grounds, even though the mentioned investment was limited to four provinces in central and eastern Indonesia. Unexpectedly, on March 2, 2021, the President decided to remove the annex in the Perpres that created controversy. Of course, the President’s actions need to be questioned, but most importantly, is it legal to remove only part of annexes in a Perpres?