Taxing Transactions through Electronic System
The Government’s decision to start imposing Value Added Tax (PPN) on the use of intangible foreign goods and services consumed domestically through electronic system transactions (PMSE), otherwise called digital transactions, have attracted much attention. Businesses have responded to the development. Some said that it would follow the Government’s policy, others have chosen to refrain from commenting.
End of Nurhadi’s Escape
After being on the run for four months, on the evening of June 1, 2020, the former Secretary of the Supreme Court Nurhadi Abdurrahman and his son-in-law were arrested by the Corruption Eradication Commission (KPK). The investigators brought the two men and Nurhadi’s wife, Tin Zuraida, to the KPK building in the morning. Several hours later, the KPK officially detained the two men, and Tin Zuraida was released once again. The arrest ended Nurhadi’s escape and should be the beginning of a new investigation chapter for the KPK.
Jiwasraya’s Collateral Damage: WanaArtha Life
On June 3, 2020, the Corruption Court of the Central Jakarta District Court will hold the first hearing of the trial of the defendants of PT Asuransi Jiwasraya’s graft case. The Attorney General’s Office (AGO), with the help of the Supreme Audit Agency (BPK), predicts that the case has resulted in more than Rp16 trillion in losses. The AGO froze the bank accounts of those suspected. One of them is PT Asuransi Jiwa Adisarana Wanaartha, also known as WanaArtha Life. The Company cannot fulfill its obligations to its clients as a result. One of its clients filed an objection to the AGO’s decision to the Central Jakarta District Court. The Company also took legal action, questioning the AGO’s decision with a pre-trial lawsuit at the South Jakarta District Court.
A Judicial Review of the Broadcasting Law
On May 27, 2020, PT Visi Citra Mitra Mulia (INEWS TV) and PT Rajawali Citra Televisi Indonesia (RCTI), part of MNC Group, filed a Judicial Review petition at the Constitutional Court. The applicants challenge Art. 1 number 2 on the Law No. 32/2002 on Broadcasting, specifically questioning the definition of broadcasting laid out. They believe the applicable definition does not cover the activities carried out by internet-based services, such as over-the-top services. So the applicants argue that there is an unequal treatment between conventional broadcasters on radio frequency spectrum and OTT providers.
Update on the Corruption in KPU
The Corruption Eradication Commission (KPK) started 2020 by uncovering corruption involving a Commissioner of the General Election Commission (KPU) Wahyu Setiawan. The KPK named Wahyu and three other people as suspects, including PDIP politician one Harun Masiku who is the alleged briber. Nevertheless, Harun Masiku has managed to stay in hiding. Recently, rumors about Harun’s death spread, but nobody seemed to understand what was happening. The KPK escalated the inquisition of the detained suspects to the stage of prosecution. On the morning of May 28, 2020, the trial of Wahyu Setiawan started. Wahyu is indicted together with his aide. Several hours later, the Panel of Judges of the same Corruption Court read its decision for Saeful Bahri, the intermediary in the case who was a cadre of PDIP.
Updates on the BPJN XII Corruption Case
In October 2019, the Corruption Eradication Commission (KPK) conducted a sting operation and uncovered a bribery scheme related to the construction of a national road in East Kalimantan. The KPK ensnared several people, including the Head of the National Road Implementing Agency (BPJN XII) Refly Ruddy Tangkere. The inquisition process continued until the end of the same year, and by the first month of 2020, the stage of prosecution started. Far from the media coverage, the suspects’ trials are examined by the Corruption Court at the Samarinda District Court. Recently, the prosecutors read their demands for the bribee, including Refly.
KPK’s Mid Year Performance
On May 26, 2020, the Head of the Supervisory Board (Dewas) of the KPK Tumpak Hatorangan Panggabean said that the Dewas had carried out various activities as mandated by Law No. 19/2020 concerning the KPK. Tumpak said that the Dewas—which is a new organ in the KPK—had prepared facilities and infrastructure, conducted operational activities, and monitored and evaluated the performance of the leaders of the KPK.
Update on the Problems in Kospin Indosurya Cipta
Problems in the Koperasi Simpan Pinjam Indosurya Cipta (Kospin) will not be over soon. Its period of Suspension of Debt Payment (PKPU) had to be postponed until mid-June 2020. The report as of last week was that the receivables registered by Kospin’s creditors had reached tens of trillions of rupiah. This situation is bad enough to force the Ministry of Cooperative Unions and Small and Medium Enterprises to issue stricter rules, especially for cooperative unions affiliated with conglomerates.
On the Revised Minerba Law
In the plenary session held on May 12, 2020, the House of Representatives passed the revised Law on Mineral and Coal Mining (Minerba) and the Government Regulation in Lieu of a Law (Perppu) on the reallocations of the 2020 State Budget for COVID-19 mitigation. The Perppu officially became Law No. 2/2020 as per May 16, 2020, and was enacted on May 18, 2020. That said, the President has not yet signed the revised Minerba Law.
Latest on Nur Pamudji’s Case
The former President Director of PT PLN (Persero) Nur Pamudji, has been on trial for corruption in the procurement of High-Speed Diesel (HSD) fuel supplied by PT Trans-Pacific Petrochemical Indotama (TPPI) since September 2019. The trial continued on May 18, 2020.