Earlier this year, PT Pertamina (Persero) announced their intention to hold tenders of the development project of Olefin Complex for PT Trans-Pacific Petrochemical Indotama (TPPI) with a Design-Build Competition (DBC) strategy. Four consortiums followed this tender. Two gave the best bid. The tender process, however, was questioned by several parties due to the participation of the Hyundai Engineering Co consortium. 

The dispute related to the debt-claiming rights (cessie) involving PT Geria Wijaya Prestige (GWP) and several other parties will not be over anytime soon. Last year, the Denpasar District Court, with the help of the Denpasar Office of State Wealth and Auction Services (KPKNL), had planned to auction off the disputed land and buildings where the Kuta Paradiso Hotel stood. The plan was canceled because of ongoing lawsuits. Recently, the KPKNL announced the same plan, with the auction ending on October 6, 2020. Fireworks Ventures Limited tried to cancel the auction.

A Suspension of Debts Payment (PKPU) lawsuit was recently filed against PT Mega Pasanggrahan Indah (a subsidiary of PT Megapolitan Developments Tbk – EMDE). The lawsuit is registered at the Commercial Court of the Central Jakarta District Court. Separately, since July 2020 the same court has examined a bankruptcy lawsuit filed against PT Global Mediacom Tbk (BMTR) by KT Corporation, South Korea’s oldest and largest telecommunications company. On September 30, 2020, the court dismissed KT Corporation’s lawsuit. 

In a hearing held on September 30, 2020, prosecutor Pinangki Sirna Malasari (who is now standing trial for supposedly conspiring in a scheme to help fugitive Joko Soegiarto Tjandra) read her objection to the indictment. Pinangki denied all allegations. Separately, in a hearing held a day before, the Minister of Finance and the former Minister of State-owned Enterprises were mentioned when the former executives of State-owned insurance company PT Asuransi Jiwasraya (Persero) read their defense plea. 

The Commercial Court at the Central Jakarta District Court is still receiving more Suspension of Debt Payment (PKPU) lawsuits, which has now exceeded 54 lawsuits. Among the lawsuits are the ones filed against PT Pollux Aditama Kencana (a subsidiary of PT Pollux Properti Indonesia Tbk – POLL) and PT Mega Pasanggrahan Indah (a subsidiary of PT Megapolitan Developments Tbk – EMDE). Both companies are engaged in the property sector and both have faced PKPU lawsuits since the beginning of this year. Herein we cover the lawsuit against PT Pollux Aditama Kencana. 

Earlier this year, the Supreme Audit Agency (BPK) submitted the result of its audit into the management of state property over the 2017 and 2018 period. The BPK found that state assets could not provide maximum income due to weak control. The Ministry of State Secretariat coordinated with the Corruption Eradication Commission (KPK) to regulate and recover the state property under its care.

Two weeks ago, the Commercial Court of the Central Jakarta District Court registered a lawsuit on Suspension of Debts Payment (PKPU) against PT Alfa Retailindo, the Company that built the foundation for Alfamart business chains. The lawsuit was withdrawn a week later.

In September 2020, the Commercial Court of the Central Jakarta District Court registered 53 PKPU lawsuits and two bankruptcy lawsuits. Among these lawsuits is the dispute related to PT Bumi Hasta Mukti. We also recently learned that senior advocate Otto Hasibuan had filed a PKPU lawsuit against graft convict Joko Soegiarto Tjandra.

Towards the end of last week, the deliberation on the Employment Cluster in the Omnibus Bill on Job Creation began unexpectedly. The Cluster is the last to be discussed. That said, achieving progress will not be easy. Many in the workers’ unions and the House of Representatives still reject the content of the Cluster.

The Supreme Court continues to reduce the punishment of graft convicts. Last week, the Corruption Eradication Commission (KPK) published 20 disappointing decisions given by the Supreme Court in a show of protest, but that did not stop the Justices. Earlier this week, the Supreme Court reduced the punishment of three other graft convicts, two of whom were found guilty in the E-KTP graft case.