The Government continues to focus on economic recovery following the impact of COVID-19. The It issued Government Regulation (PP) No. 43/2020, which amended the PP No. 23/2020 back in August 2020. In the regulation, President Joko “Jokowi” Widodo notes that regional governments could submit a loan proposal to the Minister of Finance to support the economic recovery program—a copy of the proposal must be submitted to the Minister of Home Affairs. Reportedly 23 regional governments have officially submitted such a proposal via the Ministry of Home Affairs. 

Towards the end of last week, the Budgeting Committee (Banggar) of the House of Representatives, together with the Government, agreed on several changes in the provisional posture of the 2021 State Budget Draft (2021 RAPBN). One of the results of the discussion of the Working Committee (Panja) A is the addition of spending reserves for the National Economic Recovery (PEN) program. 

On September 9, 2020, the Constitutional Court held a preliminary hearing in the trial for judicial review of Law No. 14/1985 concerning the Supreme Court, which was last amended by Law No. 3/2009 and Law No. 48/2009 concerning Judicial Powers. The petition was submitted by a citizen named Punto Wibisono, who claimed that his constitutional rights had been impaired due to the closed cassation process at the Supreme Court. Through his legal counsel, Wibisono also questioned the Law, limiting the Reconsideration effort to a single submission.

In April 2019, after three years of investigation into bribery related to the conversion of forest land in Riau and the verdicts became legally binding, the Corruption Eradication Commission (KPK) announced new suspects in the case. Among them were corporate suspect PT Palma Satu and its owner Surya Darmadi (Duta Palma Group). In the last week of June 2020, the trial of one of the key suspects, one Suheri Terta, began in the Corruption Court of the Pekanbaru District Court. Zulkifli Hasan was presented as a witness in one of the hearings. The KPK was sure that it made the right decision. But on September 9, 2020, the Panel of Judges of the Corruption Court of the Pekanbaru District Court acquitted Suheri of all charges. This is the second time the same Court decided to acquit a graft defendant. 

The Government through the Ministry of Finance continues to develop the policy on tax collection in digital transactions of products and services sold to customers in Indonesia. On September 8, 2020 the number of companies obligated to collect Value-Added Tax (PPN) went up to 28 companies.

Two months ago, the Panel of Judges of the Corruption Court at the Central Jakarta District Court handed their ruling on the graft case involving the Commissioner of PT Wahana Auto Ekamarga one Darwin Maspolim—who was accused of bribing several Tax officials. All defendants including the former Head of the Tax Office one Yul Dirga were found guilty. Both the KPK and Dirga filed for an appeal, but the appeal submitted by Dirga caught our attention. He argued that the court made a typing error in the legal consideration.

In May 2020, we reported on the changing trend of dispute resolution among business actors and how the Suspension of debts payment (PKPU) and Bankruptcy lawsuit grew increasingly in demand as a way out of financial disputes. At that time, Indonesia was still in the early stages of facing the COVID-19 pandemic. Now, the situation looks even more uncertain.

The trial on the corruption in State-owned insurance company PT Asuransi Jiwasraya (Persero) continues after a two-week break. On September 7, 2020, the Prosecutors summoned two expert witnesses, who explained how the alleged fraud happened in the Company. Meanwhile, PT Hanson International Tbk (MYRX), owned by suspect Benny Tjokrosaputro, was declared bankrupt. The legal enforcers now face a complicated situation between giving the creditors their rights or focusing on recovering State losses. 

The Corruption Eradication Commission (KPK) is still investigating the case of corruption that ensnared the former Secretary of the Supreme Court Nurhadi Abdurrahman and his son-in-law one Rezky Herbiyono. Nurhadi allegedly tried to hide the proceeds of his crime, so the KPK is focused on examining witnesses and confiscating his assets. Meanwhile, the KPK also named the Director of PT Multicon Indrajaya Terminal (PT MIT) Hiendra Soenjoto a suspect. The case is related to PT MIT—on its dispute against PT Kawasan Berikat Nusantara Persero (PT KBN). PT KBN is suing PT MIT, trying to force PT MIT to restructure its debts, again. 

Three months ago we reported on the Judicial Review petition filed by PT Visi Citra Mitra Mulia (INEWS TV) and PT Rajawali Citra Televisi Indonesia (RCTI), part of MNC Group. Both applicants challenge Art. 1 number 2 on the Law No. 32/2002 on Broadcasting, specifically questioning the definition of broadcasting laid out. The petition has received attention for all the wrong reasons, thanks to MNC Group’s poor communications management.