It has been over two years since we were exposed to the internal dispute at PT Tiga Pilar Sejahtera Food Tbk (AISA), used to be a major rice miller. Before that, we witnessed how the Food Task Force (Satgas Pangan) raided one of the warehouses belonged to the Company’s subsidiary PT Indoberas Unggul on suspicion of fraud. Since then, officials of the subsidiary were convicted, the internal dispute are heated and developed into allegation of scheme of embezzlement and resulted in each parties claiming ownership of the Company.

By the end of June 2019, the Government issued the long-awaited amendment to the regulation on the Calculation of Taxable Income and Repayment of Income Tax. The Government Regulation (PP) No. 45/2019 revised the PP No. 94/2010, and changes the provisions of two articles and insert some additional articles. Although the changes are small, this change has been awaited by the industrial sector for a long time. The entrepreneurs welcomed the changes in the PP even though there were entrepreneurs who considered the PP is way too late. Nevertheless, the Government believes that the revision dubbed as the “super deductible tax” incentive will increase Indonesia’s competitiveness vis-a-vis neighbouring countries in attractive investments. Really?

On July 9, 2019 the Supreme Court surprised the nation by accepting and granting the cassation petition submitted by graft convict the former Chairman of the Indonesia’s Bank Restructuring Agency (BPPN) Syafruddin Arsyad “Syaf” Temenggung. Syaf, as we all know was found guilty by the Corruption Court of the Central Jakarta District Court for his involvement in the corruption scheme related to the disbursement of Bank Indonesia Liquidity Assistance (BLBI) to Bank Dagang Nasional Indonesia (BDNI). The verdict remains the same at the stage of appeal, but the Assembly of Cassation decided to release Syaf from all charges. Many have since encouraged the Corruption Eradication Commission (KPK) to file a Reconsideration (PK). The question now is, can the KPK file for a PK?

Within less than three months since the sting operation, Corruption Eradication Commission (KPK) had finished compiling the dockets of the suspects in the case of alleged bribery related to projects in PT Krakatau Steel (Persero) Tbk (KRAS). The dockets of the bribers were expedited to the Corruption Court at the Central Jakarta District Court and their trials began on June 12, 2019. In the latest hearing held this week, several witnesses were present and explained the flow of funds between the parties.  

Over a year ago the public were exposed to the dispute between Luxembourg’s Molucca Holdings S.à.r.l and PT Pelita Cengkareng Paper. Since then the parties continued exchanging lawsuits. We recently learned that the last lawsuit was in the stage of mediation; the mediation failed. PT Pelita Cengkareng Paper filed a new lawsuit immediately after the mediation broke down. The paper manufacturing company listed an additional defendant in the new lawsuit, i.e., Macquarie Capital Hong Kong Limited.

The Corruption Eradication Commission (KPK) uncovered the case of corruption in the regency of Hulu Sungai Tengah, South Kalimantan, in the first month of 2018 during a Sting Operation which ensnared several people including the Regent Abdul Latif. By the end of the same year, the suspects were convicted. But the KPK developed the investigation and named Abdul Latif, a suspect in the case of money laundering. The investigation and inquisition continue to this day. 

On April 24, 2017, the Corruption Eradication Commission (KPK) named a suspect in the Bank Indonesia Liquidity Assistance (BLBI) graft case. The suspect is the former Chairman of the Indonesia’s Bank Restructuring Agency (BPPN) Syafruddin Arsyad “Syaf” Temenggung, who is also a suspect of another graft case implicating PT Victoria Securities International. In January 2019, Syaf was convicted to 15 years imprisonment after the Jakarta High Court aggravated the sentences previously given by the Corruption Court at the Central Jakarta District Court. Syaf refused to accept the verdict and filed a cassation. On July 9, 2019, the Panel of Cassation decided to release Syaf from the charges. Now that Syaf is released, what should we expect?

In February 2019, the Supreme Court announced that they had begun the process of selecting Ad hoc judge candidates for the first level corruption courts (district court) and the appellate level. Presently, there are more than one hundred candidates. The Coalition for Judicial Monitoring (KPP) stated that they had found many irregularities in the selection process. We should also note that several ad hoc judges of corruption courts have been convicted of corruption while serving as ad hoc judges.