The Troubled Food Estate Project

In 2016, President Joko “Jokowi” Widodo officially recognized the customary forests of several indigenous people and customary communities. The recognition was given in the form of a Decree on the Inclusion of Customary Forest and Customary Forest Determination Letter to nine customary communities in the State Palace. Four years later, however, the Pandumaan Sipituhuta learned that their land was included in the Food Estate project. 

Update on the Corruption in Danareksa

In August 2018, we reported on an investigation conducted by the Attorney General Office (AGO) related to allegations of corruption involving State-owned Enterprise PT Danareksa (Persero). At the beginning of 2020, the investigation escalated to the stage of inquisition. The AGO has named six suspects in two different cases. Far from media coverage, by the end of 2020 the trials started. 

Rohadi’s Crimes

The former Registrar of North Jakarta District Court Rohadi, who was caught receiving bribes related to the case of sexual abuse involving a celebrity named Saipul Jamil, was found guilty in 2016. This seemingly trivial case became the Corruption Eradication Commission (KPK) ‘s entry point to discovering many more crimes that Rohadi allegedly committed since 2005. Rohadi was named a suspect of money laundering, but it took the KPK a long time to investigate the case. Rohadi’s trial began earlier this week.

Special Autonomy in Papua and West Papua 

The indictment against the former Registrar at the North Jakarta District Court one Rohadi mentions a case of corruption in West Papua. It’s a reminder that two decades of special autonomy and the Rp138 trillion in regional transfer funds have not transformed the Papua and West Papua for the better. The House of Representatives is now expected to double the special autonomy funds for Papua and West Papua.

On Social Assistance Graft Case: Case Reconstruction 

Towards midnight of Dec. 4, 2020, the Corruption Eradication Commission (KPK) conducted a Sting Operation in Jakarta. It uncovered a case of corruption in the Ministry of Social Affairs. The KPK named several people as suspects, including then Minister of Social Affairs Juliari Batubara (PDIP). On Feb. 1, 2021, the KPK conducted a case reconstruction. More details were revealed. 

ASABRI Scandal: The Suspects

We first reported on a legal issue related to PT Asuransi Sosial Angkatan Bersenjata Republik Indonesia (familiarly known as PT ASABRI) in 2011. The case had been under investigation since 2008. It mentioned the involvement of several important figures. A decade later, one of the names mentioned appeared in connection with the allegation of corruption in PT Asuransi Jiwasraya. By the end of 2020, the Minister of State-Owned Enterprises Erick Thohir visited the Attorney General’s Office (AGO) with a number of documents related to the allegations of corruption in ASABRI. On Feb. 1, 2021, the AGO announced progress and named the suspects, including Benny Tjokrosaputro and Heru Hidayat—both had been convicted as the key perpetrators in the Jiwasraya case—and two retired military generals.

Losses to BUMN Subsidiaries are not Losses to the State (2)

The Supreme Court issued the game-changer Circular (SEMA) No. 10/2020 in Dec. 2020. Among the important issues noted in the SEMA, the Supreme Court referred to the precedent laid out in the cassation decisions given to Ferederick Siahaan and Karen Agustiawan. The decisions also rely on the Constitutional Court decision No. 01/PHPUPres/XVII/2019, which is related to Vice President  Ma’ruf Amin.

SEMA 10/2020

Karen Agustiawan was accused of corruption related to the purchase of shares of Australia-based ROC Oil Company Limited while serving as president director of PT Pertamina (Persero). She’s not the first State-Owned Enterprise (BUMN) leader to be convicted for a bad business decision. But what happened to Karen and several former Pertamina officials sparked a debate over the definition of corruption. The debate continues as the Supreme Court rules that the actions of Karen, and those like her, are not corruption. 

More on the PKPU for Jiwasraya

Problems related to PT Asuransi Jiwasraya (Persero) have multiplied after two of its customers submitted a lawsuit for Suspension of Debt Payment (PKPU) to the Commercial Court of the Central Jakarta District Court. The trial began recently. Many hope that this lawsuit will not be accepted by the Panel of Judges, given its complexity. That said, the same Court recently granted a PKPU lawsuit against another insurance company, so there is already a precedent. 

Latest on the Digital Services Tax Investigation: New Chapter

Last year, we reported that the Office of the United States Trade Representative (USTR) had begun investigating taxes on digital services adopted or proposed by the European Union and eight countries, including Indonesia. The Indonesian Government responded with a written response addressed to the USTR. On Jan. 13, 2021, the USTR issued a status update on the investigations. 

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