More on the Dispute in Kawasan Berikat Nusantara
PT Kawasan Berikat Nusantara (Persero) (KBN) has been in dispute with its subsidiary PT Karya Citra Nusantara (KCN) since recent years on various issues. At the beginning of this year, KBN decided to sue KCN related to the utilization of several piers located in the concession area owned by KBN. KBN states that the KCN’s activities resulted in State losses, but the dispute is confusing because KCN can manage the disputed area by obtaining permission from the Ministry of Transportation. Two months ago, the verdict given by the North Jakarta District Court added to the confusion because the Panel of Judges ruled in favor of KBN. The Ministry of Transportation filed an appeal, stating that the dispute should not cause delay in the development of national strategic projects. But several national media outlets had reported that the President must intervene to resolve the dispute. But why now after the trial is already over?
Sting Operation in Pasuruan
Last week, news broke that the Corruption Eradication Commission (KPK) had conducted a sting operation in Pasuruan, East Java. A regional leader was reportedly detained. This news caused a stir because the brother of the Vice Governor of East Java one Syaifullah Yusuf is the Regent of Pasuruan Irsyad Yusuf. But apparently, the discreet operation was conducted in the city of Pasuruan, not in the regency of Pasuruan. The investigators had arrested four people including the Mayor of Pasuruan one Setiyono. All four men were named suspects of bribery.
Sting Operation in Ambon
Last week on October 3, the Corruption Eradication Commission (KPK) conducted a sting operation in Ambon, Maluku. The day after the KPK held a press conference and said that they had named the Head of Ambon City Primary Tax Office (KPP) one La Masikamba; tax examiner one Sulimin Ratmin; and owner of CV AT one Anthony Liando as graft suspects.
Law Journal: Merpati Airlines’ PKPU and the New Lawsuit related to BFIN’s Shares Dispute
The process of Suspension of Debts Payment (PKPU) of Merpati Airlines will end soon but the Panel of Judges of the Commercial Court at the Surabaya District Court decided to grant another time extension. Merpati have until October 18, 2018 to convince their creditors. Even though the time limit will be over on November 3, 2018, the peace agreement should be promulgated before that because as a State-owned Company, the process of PKPU is not over with only a peace agreement. Meanwhile, the dispute of shares ownership between PT Aryaputra Teguhartha, a company with links to PT Ongko Multicorpora (PT Mitra Investindo Multicorpora) and Kaharudin Ongko (Bank Umum Nasional and former defendant in the BLBI graft case), and PT Bunas Finance Indonesia Tbk (now PT BFI Finance Tbk) (BFIN) continues. Aryaputra announced that they have filed another lawsuit, this time against the consortium of investors lead by Garibaldi Thohir and Patrick Walujo.
On Riau Power Plant Graft Case: Johannes Kotjo’ Trial
On October 4, 2018, the Corruption Court of the Central Jakarta District Court finally held the first hearing of the trial of conglomerate Johannes Budisutrisno Kotjo—a defendant in the case of alleged corruption related to the construction of the Riau Power Plant. The indictment for Johannes revealed the alleged involvement of big names in Golkar, including Setya Novanto.
Indonesia v. United States: Trade War Updates
In August 2018 the United States (U.S.) notified the Dispute Settlement Body (DSB) of the World Trade Organization (WTO) that they considered Indonesia had failed to comply with the recommendations and rulings of the DSB, and therefore urged the WTO to impose sanction on Indonesia. The parties had met to discuss the issue and on October 2, 2018, the Indonesian representatives stated that the parties agreed to resolve the problems bilaterally.
More on the Corruption in North Konawe
On October 2, 2017 the Corruption Eradication Commission (KPK) conducted a field investigation in North Konawe, Southeast Sulawesi and named the former Regent of North Konawe one Aswad Sulaiman a suspect the next day. Aswad Sulaiman is allegedly involved in two cases of alleged corruption related to mining licenses in the regency. Despite the lack of reports from the press, the investigation and inquisition continues to this day. Aswad who had been convicted in another case of alleged corruption earlier this year, will have to serve a long time in prison if the KPK can prove his crimes.
Advocates Turned Convicts (Part II)
The Corruption Eradication Commission (KPK) surprised many in the legal profession after naming senior advocate Otto Cornelis Kaligis (OC Kaligis) a graft suspect three years ago. Since then, a lot has happened and more advocates were caught under the suspicion of corruption. One of whom was Fredrich Yunadi, who was named a suspect of obstruction of justice in the case related to the procurement of electronic identity card (E-KTP). Fredrich, who was the legal counsel for Setya Novanto, was convicted three months ago. On October 1, 2018, after a 10-hour examination, the KPK named the notorious lawyer Lucas a suspect, making him the 23rd advocate caught by law enforcers in the last decade.
Indonesia v. Churchill Mining: Annulment of Award Updates
The Governor of East Kalimantan who was inaugurated on October 1, 2018 one Isran Noor has publicly endorsed Prabowo Subianto for the upcoming 2019 Presidential election. The announcement, though not surprising, is still interesting because it reminds us of the case implicating Churchill Mining Plc, which also implicated Prabowo’s Nusantara Group. What is the status of the dispute now?
On the Budget Mafia Case
The so-called Budget Mafia is getting more interesting after the trial of one of the suspects in the case began last week. The trial of the Former Section Head for Housing and Settlement Funding Development at the Directorate General of Fiscal Balance of the Ministry of Finance one Yaya Purnomo revealed a large scale bribery scheme. Yaya allegedly received bribes from as many as ten regional leaders. Note that Yaya is only a section head.