Corruption Journal : Developments in Jepara and Tulungagung

By the end of 2018, the Corruption Eradication Commission (KPK) makes a move in Central Java and raided the office of the Regent of Jepara one Ahmad Marzuqi. Although it was not a sting operation, the KPK still announced that they have conducted an inquisition and named two suspects in the case of alleged bribery, including Marzuqi. On May 13, 2019, after several examination sessions, the KPK finally detained Marzuqi. Separately, the KPK continue investigating the case of corruption in Tulungagung which had ensnared the disgraced Regent one Syahri Mulyo. On May 13, 2019, the KPK announced that they had named a new suspect in the case.

On Corruption in Pasuruan: Verdicts

In October last year, the Corruption Eradication Commission (KPK) conducted a sting operation in Pasuruan, East Java, and arrested several people including the then Mayor of Pasuruan one Setiyono. KPK named four suspects in the case of alleged bribery. The trials of the defendants started not long after and did not gain much attention because the Corruption Court examined the case at the Surabaya District Court. Three defendants had been convicted entering 2019, and on May 13, 2019, the court read the verdict for Setiyono, the last defendant in the case. The Panel of Judges found Setiyono guilty of the charges.

Pre-Trial Lawsuits against the KPK

The hearing to examine the pre-trial lawsuit filed by Romahurmuziy, the chairman of United Development Party (PPP), against the Corruption Eradication Commission (KPK) continues and is scheduled to end on May 14, 2019. Meanwhile, the former President Director of PT PLN (Persero) Sofyan Basir, who the KPK recently named suspect, filed a pre-trial challenging the KPK’s decision. The first hearing is scheduled to be held on May 20, 2019.

On Transparency of Palm Oil Plantations’ HGU Data

A letter signed by one Musdalifah Machmud, the deputy for Food and Agriculture Coordination unit at the Coordinating Ministry for Economic Affairs dated May 6, 2019, has caused a heated debate. The debate was triggered by the affirmation that the data on the License on Right to Cultivate (HGU) of Palm Oil Plantations are information excluded from public information. This means no party can get information about the HGU owned by companies in the industry. Environmental organizations strongly reacted against this development, but the Ministry’s decision is supported by representatives of the House of Representatives.

Latest on Wirajaya Packindo’s Insolvency

It has been years since the Commercial Court at the Central Jakarta District Court declared the corrugated carton company PT Wirajaya Packindo bankrupt, but the process of the Company’s insolvency continues to this day. Last year the team of curators announced that the Company owned three factories in two different locations, and they succeeded in auctioning one factory. Today, not much has changed other than that the team of curators already sold one other factory. The amount of money from sales is far from enough to pay for the Company’s debts.

Troubled Hardaya Inti Plantation

The Buol Regency Government and Walhi submitted a non-litigation complaint about a legislation dispute to the Ministry of Law and Human Rights related to the issuance of forest area exchange license (IPKH) for PT Hardaya Inti Plantation (HIP) in Buol. They considered the decision was issued in violation of the applicable legal norms and overstepping the authority of the local government. The problem is, Amiruddin “Rudi” Rauf, the Regent of Buol, has rejected the request to obtain a location license for the Company which should be a must-have condition before the Ministry of Environment and Forestry can give the disputed IPKH license. However, due to overlapping regulations, the disputed license can be given to the Company. How can this happen? Speaking about the HIP, we certainly cannot forget the corruption case uncovered by the KPK several years ago which involving the owner of the Company Siti Hartati Murdaya and then Regent of Buol one Amran Batalipu.

Latest on the Corruption in the Ministry of Youth and Sports

The Corruption Court at the Central Jakarta District Court recently begin the trials of the bribees in the case of alleged corruption involving officials of the Ministry of Youth and Sports and the Indonesian National Sports Committee (KONI). The first hearing of the trials was held to listen the to Prosecutors indictment for three defendants, and the three defendants are being prosecuted in two separate trials.

Problems in AISA: Bankruptcy of Subsidiaries

Two years ago PT Tiga Pilar Sejahtera Food Tbk (AISA) made headlines when the Food Task Force (Satgas Pangan) raided one of the warehouse of its subsidiary PT Indoberas Unggul on the suspicion of fraud. The case which started as a “simple” case of rice mixing turned out to be the beginning of the Company’s series of miseries. Soon after the case was uncovered, we witness how the Company’s executives and shareholders publicly fought against each other over the control of the Company. We eventually heard that the Company’s line of business where PT Indoberas Unggul is one of the subsidiaries had been declared bankrupt.

Update on the Corruption in Mesuji

The Corruption Eradication Commission (KPK) conducted the first sting operation of 2019 on January  23, 2019 in the regency of Mesuji in Lampung. The KPK arrested dozens of people and named five people as suspects including the Regent of Mesuji one Khamami. The trial of the first batch of defendants is ongoing.

The Case of Citra Sari Makmur

Towards the end of April 2019, PT Citra Sari Makmur (CSM) who used to be a business partner of PT Telekomunikasi Indonesia Tbk (TLKM – Telkom) filed a lawsuit against the Minister of Communication and Informatics at the Jakarta State Administrative Court. The Company questioned the Minister’s decision to terminate its license on Operation of a Fixed Closed Network (Izin Penyelenggaraan Jaringan Tetap Tertutup). We know that the Company escaped bankruptcy in 2014 and since then several of its creditors had attempted to cancel the peace agreement.

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