Since last year the Office of the United States Trade Representative (USTR) has investigated the taxes on digital services adopted by France. In June 2020, the USTR again commenced a similar investigation into taxes on digital services adopted or proposed by the European Union and eight countries, including Indonesia. The Indonesian Government has responded with a written response addressed to the USTR.

In 2016 the Business Competition Supervisory Commission (KPPU) examined the allegations of cartel-like practices involving 32 feedlotters. The KPPU later decided that the said companies had conspired to influence beef prices around the Greater Jakarta area. They were ordered to pay a fine commensurate to the extent of their involvement in the conspiracy. Two companies accepted the punishment, while 30 companies decided to file an objection at the Central Jakarta District Court. The companies that objected to the decision asked the Panel of Judges to conduct an additional examination before continuing with the trial. Nevertheless, the Panel of Judges declined the request and rejected the objection in the hearing held on August 1, 2017. The companies refused to surrender and filed for reconsideration (PK). At the end of 2019, the Supreme Court declined the objections, and on July 24, 2020, the KPPU announced the reconsideration decision as legally binding. 

In October 2019, the Business Competition Supervisory Commission (KPPU) handed out sentences to companies that had allegedly violated the Law by delaying their notification of corporate action (acquisition). Among the companies sentenced is PT Citra Prima Sejati, a subsidiary of PT Bumi Resources Tbk (BUMI). The Company was declared guilty in three different cases. PT Citra Prima Sejati filed objections at the South Jakarta District Court. Towards the end of 2019, one of the objections was rejected, while another partially granted. The third objection was rejected in January 2020. The Company filed a cassation, but the Supreme Court ultimately ruled in favor of the KPPU. The Supreme Court handed over a copy of one of the decisions to the district court and the parties recently.

In the past few weeks the Corruption Eradication Commission (KPK) has been busy with examining witnesses who are supposedly familiar with cases of alleged corruption that had actually been announced during Agus Rahardjo’s leadership. One of the investigations and inquisitions that finally has shown progress is the case related to the allegations of corruption in the state EPC and toll road developer PT Waskita Karya (Persero) Tbk (WSKT). The KPK officially announced the investigation back in December 2018, and on July 23, 2020, the KPK under Firli Bahuri’s lead finally announced that they had named three new suspects. With the announcement, now the case already have five suspects. 

The Jakarta High Prosecutors’ Office (Kejati Jakarta) recently revealed an allegation of corruption committed by several parties, including an officer of the Financial Authority Services (OJK), in the interest of Bank Bukopin. The Kejati began investigating the case in 2019. It recently escalated the process to the stage of inquisition. On July 21, 2020, the suspected OJK officer was detained.

On June 22, 2020, the Corruption Eradication Commission (KPK) summoned the Regent of East Kotawaringin in Central Kalimantan one Supian Hadi (PDI-P) to be examined as a graft suspect. Since then, there has been almost no news on the development of the said investigation. Supian, whose involvement is suspected in a case that allegedly caused over Rp5 trillion in State losses, is still leading East Kotawaringin. 

In June 2020, the Board of Directors of Geo Energy Resources Limited (SGX: RE4) announced a potential dispute related to the Company’s corporate action dated September 2019. The corporate action in question is related to the purchase of 100 percent of the existing shares in PT Titan Global Energy (PT TGE), a part of PT Titan Infra Energy (PT TIE). The current or former shareholders of PT TIE are reportedly in dispute in Indonesia.

Over four months ago, a lawsuit against PT Karya Citra Nusantara (KCN) was registered at the Commercial Court of the Central Jakarta District Court. Listed as the plaintiff is the Company’s former legal counsel Juniver Girsang. The Court granted the lawsuit and KCN was forced to restructure its debt. KCN used the temporary PKPU to resolve the issue with the majority of its creditors. The quick process proved that KCN was a healthy Company. On May 14, 2020, the Panel of Judges was supposed to read the peace agreement, but the hearing was postponed for two months. This has never happened before, but all parties abided by the process. On July 20, 2020, another issue arose. The Court was forced to again postpone the promulgation of the peace agreement. 

The Ministry of Finance issued the Regulation of the Minister of Finance (PMK) No. 86/PMK.03/2020 towards the end of last week. So the Government officially extended the validity period of the tax incentives for taxpayers affected by the Coronavirus outbreak. The PMK notes more incentives and regulates several other things, which will be effective until December 2020.

The National Police (POLRI) have removed three generals from their posts for negligence related to the scandalous entry of fugitive Joko Tjandra (colloquially known as Joker) into Indonesia. One of the generals dismissed supposedly maintained a direct communication channel with Joko.