BUMN and Economic Recovery (2)
Towards the end of 2020, the Government fulfilled the provision of State Capital Participation (PMN) funds to several State-Owned Enterprises (BUMN) with a total amount of over Rp35 trillion. The funds are still parts of the National Economic Recovery (PEN) program. The transfer was finalized with Government Regulations that briefly describe the use of the funds provided.
PKPU for Kresna Life
In November 2020, PT Asuransi Jiwa Kresna (known as Kresna Life linked to PT Kresna Graha Investama Tbk – KREN) was sued by one of its clients. Within less than a month, the company was forced to restructure its debts in a period of Suspension of Debts Payment (PKPU). The process is ongoing until today, but there is confusion regarding the court decision and the responsibility of the Financial Service Authority (OJK).
Prohibited Organization FPI, Finally…
By the end of 2016, we saw the Islam Defenders Front (FPI) leading a band of religious conservatives to accuse the then Governor of Jakarta Basuki “Ahok” Tjahaja Purnama of blasphemy. This movement briefly threatened the stability of the nation and emboldened the FPI to broadcast their deranged extremist views. An example of such views would be the accusation that the Central Bank had incorporated the logo of the banned communist party into the newly designed rupiah bills. The public has grown anxious to the point that calls for the disbandment of FPI emerged once more. But we have to wait for over three years of seemingly endless drama before it happens. On Dec. 30, 2020, the Government finally officially disbanded the FPI. The public rejoices, but FPI resist. We wonder what will happen after this decision.
Latest on Joker’s Case
The trial of Joko Tjandra bribery case will end soon. The intermediary in the case one Tommy Sumardi, Joko’s friend and also in-law of Malaysia’s ousted Prime Minister Najib Razak, has been found guilty. The Panel of Judges, however, accepted his request to be a Justice Collaborator so we wonder what will happen after the trial ended. We are now waiting for the verdict on the two police generals (Prasetijo Utomo and Napoleon Bonaparte) who are indicted of receiving approximately Rp9 billion in exchange for helping to erase Joko’s name from the fugitive list. Separately, the trial in the case of conspiracy with key defendant Pinangki Sirna Malasari, continues. After only less than two months of proceedings, the prosecutors had read their demands for Pinangki’s counterpart Andi Irfan.
On the Water Supply Bribery Case : Latest Trials
It has been over two years since the Corruption Eradication Commission (KPK) conducted a Sting Operation and uncovered a vast corruption scheme involving civil servants under the Ministry of Public Works and Public Housing. The scheme related to the construction of dozens of Drinking Water Supply System (SPAM) projects, conducted across Indonesia had ensnared a lot of people and the latest perpetrator with the highest authority ensnared is member of the Supreme Audit Agency (BPK) one Rizal Djalil, who was senior politician from the National Mandate Party (PAN). Recently the trials of Rizal and one other suspect started, and judging from the content of their indictment, we hope the KPK will not stop investigating.
Tax Issues on Electronic Transactions
The Indonesian Government is using the COVID-19 pandemic to implement several plans that have been stalled for some time, including collecting taxes from electronic system transactions (PMSE). Until the end of 2020, however, there are reportedly several companies who have not fulfilled their obligations. In addition, there is a new ministerial regulation related to the policy.
On Joker’s Forgery Case : The End?
One of the most awaited trials of the year ended recently. The Panel of Judges of the East Jakarta District Court who conducted parallel examinations of three defendants for alleged forgery and obstruction of justice related to efforts in assisting Joko Tjandra escape punishment had declared all defendants guilty. The punishment given are heavier than the prosecutors demands, but many were dissatisfied with the verdicts.
Recasting ASABRI
On Dec. 22, 2020 the public was shocked by the visit of the Minister of State-Owned Enterprises Erick Thohir to the Attorney General’s Office (AGO). Minister Erick came with a number of documents related to alleged corruption in PT Asuransi Sosial Angkatan Bersenjata Republik Indonesia (Persero) or familiarly known as PT ASABRI (Persero). With the report, although POLRI has been conducting investigation into a similar allegations in ASABRI, now a comprehensive investigation will be carried out by the AGO in coordination with the POLRI. This news, to be honest, comes as no surprise. We have reported various alleged irregularities that have dragged ASABRI in for nearly a decade.
Capital Punishment for Corruption
Three weeks ago the Corruption Eradication Commission (KPK) conducted a Sting Operation and uncovered a case of alleged corruption involving the Ministry of Social Affairs officials. The case later ensnared the Minister of Social Affairs Juliari P. Batubara. The disclosure of this case has shocked the whole country not only because of the act of corruption, but the fact that the crime occurred even though the KPK had warned that perpetrators of crimes during the pandemic could be punished by death. The public obviously want the threat of death penalty to be implemented, but it is not that easy. Among the many countries that have capital punishment for corruption offenders, Indonesia is one of the few countries who has never used this article.
2021 Legal Outlook: the KPK’s Performance
When the 2015-2019 leaders of the Corruption Eradication Commission (KPK) ended their term of office at around this time last year, they claimed to have succeeded in saving the State from losses that could amount to Rp63.8 trillion. The KPK under Agus Rahardjo’s lead was also praised for marathon Sting Operations from 2016 to 2019. This is partly why the KPK under Firli Bahuri was ridiculed, because even as of Dec. 2020, the KPK only carried out seven official Sting Operations.