What is currently happening in North Sulawesi is very confusing because it has never happened before, but this is also evidence of several issues, including that regional governments have powers that still need to be monitored. For the first time in history, the North Sulawesi provincial government refused to inaugurate the Regent and Vice Regent-elect of the Talaud Islands regency one Elly Lasut and one Moktar Parapaga. Governor Olly Dondokambey (PDI-P) used the Supreme Court’s decision that was just read in December 2019 as the basis for his action. Meanwhile, legal experts sided with the Regional Election Commission (KPUD) and the results of the 2018 regional head elections. This situation forced the Minister of Home Affairs to immediately bring the parties together and hold a case expose on Jan. 15, 2020.

In late 2018, the Business Competition Supervisory Commission (KPPU) began examining the allegation of conspiracy in the construction of the Kalimantan-Java gas pipeline (Kalija I). Several months ago, the KPPU decided that the allegation cannot be proven. But it is interesting to see that in the second week of January 2020, the Central Jakarta District Court registered two lawsuits related to PT Kalimantan Jawa Gas. The lawsuits are interesting because the parties in it are the parties in a consortium who won the first tender auction for the project back in 2014. The KPPU decision briefly mentioned the chronology of the tender, but we have no idea that the dispute continues to this day. 

The Ministry of Finance reacted to the PT Asuransi Jiwasraya (Persero) case. The Ministry of Finance is examining public accountants from two public accounting firms (KAP) who were Jiwasraya’s external auditors in the period of 2015-2017. The Indonesian Institute of Certified Public Accountants (IAPI) agrees with the suspicion that there was window-dressing in the Jiwasraya Financial Report. That said, the professional association stressed that its members were not involved in the incident. We should note that this allegation is not only related to financial statements in recent years. Provisional suspicion is that the problem in Jiwasraya has occurred since 2004. Many parties questioned why the public accountant did not find this problem even though it allegedly happened years ago.

Surprising news broke on the evening of Jan. 14, 2020. The notorious Benny Tjokrosaputro had been detained. Benny was arrested after answering the Attorney General’s Office (AGO) ’s summon for examination related to the allegations of corruption involving State-owned insurance company PT Asuransi Jiwasraya (Persero). The AGO named him a suspect in the case. The AGO had detained four other prominent figures and named them suspects, but the public is focused on Benny.

Major floods hit Jakarta and parts of West Java in the first day of 2020. Although other areas in West Java were affected, public attention was centered on Jakarta, particularly on the channelization of the Ciliwung River, which has been delayed for several years. Blame was also assigned to the Governor of Jakarta Anies Baswedan for failing to conduct all measures necessary to prepare Jakarta’s water management infrastructure. Lawyers have decided to help flood victims by advocating a class action. 

By the end of 2018, the Governor of Jakarta had decided to stop the controversial Jakarta Bay reclamation projects. Several months later, PT Taman Harapan Indah, a subsidiary of PT Intiland Development Tbk (DILD), filed a lawsuit against the Governor. PT Taman Harapan Indah holds the reclamation license of Island H. The lawsuit had been granted by the Panel of Judges of the Jakarta State Administrative Court (PTUN), but the provincial government decided to appeal. However, the Jakarta State Administrative High Court (PTTUN) decided in favor of the previous decision. There are three other similar lawsuits filed by different developers of the reclamation project. The latest lawsuit was filed by PT Agung Dinamika Perkasa, who do not own any reclamation license, the decision on this lawsuit is scheduled to be read today, Jan. 14. Note that the subsidiary of PT Agung Podomoro Land Tbk (APLN) is only a partner of PT Jakarta Propertindo in the plan to build Island F. By far, interesting to see how PTUN decided to decline the lawsuit filed by PT Manggala Krida Yudha.

Suspension of debts payment (PKPU) and bankruptcy lawsuits are increasingly in demand as a way out of financial disputes. In 2019, the number of PKPU and bankruptcy lawsuit applications in five commercial courts increased compared to 2018. Several business sectors are noted for being vulnerable to PKPU and bankruptcy lawsuits.

Many concerns accompany the plan to create Omnibus Law. In addition to the previously unknown term, the Government seems very ambitious and almost reckless. The President requested that the entire process be completed by his subordinates and the House of Representatives within three months. For many people, this is impossible.

Finally, the work meeting of the Legislative Body (Baleg) of the House of Representatives and the Government approved as many as 50 Bills (RUU) to be included in the 2020 Priority National Legislation Program (Prolegnas Prioritas) 2020 and 248 Bills to be included in the 2020-2024 Prolegnas on December 5, 2019. We are pessimistic that the stakeholders and authorities can meet this target, but apart from the large number of agreed Bills and the performance of legislators, several Bills in the Prolegnas are categorized as Omnibus Law. Interestingly, not all Omnibus Law are initiated by the Government. However, the Government appears to be very serious about their plan and for now it focuses on two Bills. The President has asked the House of Representatives to complete the process in no more than three months.