It has been a while since the Attorney General’s Office (AGO) announced the investigation and inquisition into the allegations of corruption involving PT Asuransi Sosial Angkatan Bersenjata Republik Indonesia (familiarly known as PT ASABRI). Since then, the AGO has continued examining suspects and witnesses. It has also been aggressively confiscating the suspects’ assets. After a failed attempt to finish the dockets of the suspects, on May 27, 2021 the AGO announced that dockets of seven suspects had been completed and would be expedited to the stage of prosecution. The AGO, however, is still waiting for the report of State losses from the Supreme Audit Agency (BPK) although the AGO had started to auction off the confiscated assets. 

Nearly three months ago the Corruption Eradication Commission (KPK) confirmed the news that it was investigating a corruption case related to land acquisition in East Jakarta. The confirmation was surprising because the KPK apparently had conducted an inquisition, but decided to provide no further information. The press reported that the KPK had named four suspects in the case. The KPK did not make an official announcement until May 27, 2021. It had detained the alleged key person in the case, Yoory Corneles Pinontoan, the former president director of the Regional Public Corporation Pembangunan Sarana Jaya (PD Sarana Jaya).

Textile giant PT Sri Rejeki Isman Tbk (SRIL or Sritex) is having a rather terrible year. The last lawsuit for Suspension of Debt Payment (PKPU) against its affiliated company was granted by the Commercial Court at the Semarang District Court. Five companies in the group, including the parent company, and one affiliated company are in a temporary PKPU period. Sritex announced that it would conduct a General Meeting of Shareholders (RUPS). One of its aims is to change the Company’s business activities.

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, lost the pre-trial battle against the Corruption Eradication Commission (KPK). The sole presiding judge of the South Jakarta District Court decided that the KPK had followed the existing procedures in handling Lino’s case and that some of Lino’s questions in the petition could not be examined in a pre-trial. The KPK can now continue its inquisition. 

The year 2020 was a frightening specter for the financial services industry in Indonesia. The COVID-19 pandemic revealed many issues and caused hundreds of disputes. One of the disputes that has attracted attention is related to Koperasi Simpan Pinjam (Kospin) Indosurya Cipta. Though the dispute settled amicably, the owner of the Company was named a suspect of fraud and embezzlement. The peace agreement was also challenged by dozens of creditors.

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.