A week ago we reported that Minister of Finance Sri Mulyani and former Minister of State-Owned Enterprises Rini Soemarno were mentioned in a follow-up hearing on the corruption case involving PT Asuransi Jiwasraya (Persero). Hary Prasetyo, the former finance director, had tried to assign the blame on the two ministers. There are more to the defense plea conveyed by the other defendants that we need to note. 

Towards the end of October 2019, President Joko “Jokowi” Widodo in his first second-term speech noted five targets that he’d like to achieve. One of them is simplifying various regulatory constraints. The Government, said Jokowi, would invite the House of Representatives to make two large-caliber laws that will later become Omnibus Laws—laws that are issued with various objectives and at the same time, revise many other relevant laws. Nearly a year later, despite so many refusals, the controversial Omnibus Bill on Job Creation was passed into Law in a Plenary Meeting held on Oct. 5, 2020.

The Minister of State-Owned Enterprises Erick Thohir stated his plan to dissolve 14 State-Owned Enterprises (BUMN) as a form of transformation and downsizing of BUMN. This was conveyed by the special staff to the Minister one Arya Sinulingga in a virtual discussion held on September 28, 2020. Several days after that, the notorious lawmaker Andre Rosiade of Gerindra mentioned several names of companies to be liquidated including PT Merpati Nusantara Airlines (Persero) and PT Kertas Leces ( Persero). The news was widely circulated, but for us this is not surprising. The companies mentioned have been in trouble for a long time.

It has been a while since the Corruption Eradication Commission (KPK) said it would focus on the alleged use of the mining licensing process as a means of corruption, including to obtain political campaign funds. We have seen many regional leaders convicted of abusing their authority and because of this certain regions have received the KPK’s special attention. This year, the KPK conducted its supervision in East Kalimantan and the result shows that abuse of authority is still happening.

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.