On Aviation Cartel : KPPU Latest Examination
Back in 2019, the Business Competition Supervisory Commission (KPPU) examined allegations on cartel-like practices related to soaring ticket rates and cargo transportation in the national aviation industry. The KPPU read its decision in 2020 amid the pandemic and declared the reported parties guilty, albeit not of cartel-like practices. In May 2024, the KPPU summoned the parties to ensure their compliance with the implementation of the decision, especially because similar situations, namely high domestic flight ticket prices, still occur. Towards the end of last week, KPPU announced that among the airlines examined along the process, only Lion Group wouldn’t comply with the decision of the Supreme Court. KPPU, therefore, took the initiative to commence an investigation on the group.
Indofarma Downfall : Criminal Investigation
Earlier this year we reported that the State pharmaceutical firm PT Indofarma Tbk (INAF) is having a rough time. In addition to a series of losses over the years, the company also faces legal issues. By the time we wrote the report, Indofarma and its subsidiary PT Indofarma Global Medika (PT IGM) had faced three lawsuits demanding the company to restructure its debts (PKPU). However, the situation got worse in an instant as more lawsuits were filed and the company’s problems were finally revealed to the public, including that the officials of the company deliberately used the employees identity to apply for online personal loans which caused a debt of over Rp1 billion. This week, the Prosecutors’ Office announced their investigation.
Chasing the Land Mafias (2)
The land acquisition process for the DP 0% housing program, which was the flagship program of then Governor of DKI Jakarta, Anies Baswedan, was very flawed and carried out without proper supervision so that many parties could intervene and take advantage. The program ended with four criminal investigations and ensnare individual and corporate suspects, including Yoory Corneles Pinontoan, the former president director of the Regional Public Corporation Pembangunan Sarana Jaya (PD Sarana Jaya). This week, the Corruption Eradication Commission (KPK) finally announced the suspects in the latest investigation, including Commissioner of PT Totalindo Eka Persada Tbk (TOPS).
PKPU for Adhi Karya and the Hambalang Case
Last week a PKPU lawsuit was filed against PT Adhi Karya (Persero) Tbk (ADHI). The plaintiffs are one Machfud Suroso and PT Dutasari Citralaras. Machfud is identified as the company’s president director. At first glance, there is nothing strange about this lawsuit, but PT Dutasari Citralaras is a familiar name. One of the company’s directors was said to be an influential party in uncovering the corruption scandal of the Hambalang project, but was later imprisoned on suspicion of tax evasion. Let’s revisit the case.
Problems Following Waskita Karya
The legal issues that follow Waskita Karya are getting more complicated. In the middle of this year we know that tycoon Edwin Soeryadjaya et al filed a lawsuit against the company in a dispute related to construction work for the Indian Embassy office and now the trial is still ongoing, however, two months earlier Edwin et al had filed a lawsuit to the Jakarta State Administrative Court (PTUN Jakarta) against the Head of the Jakarta Capital Investment and One Stop Integrated Services Department. The allegation is that there was manipulation in the provision of building construction permits for the said construction work. Not long ago, the lawsuit was granted by the PTUN.
Utilizing the Sedimentation Products in the Sea
Over a year ago the Government’s decision to issue Government Regulation (PP) No. 26/2023 concerning Management of Sedimentation Products in the Sea has generated controversy and rejection from many parties. At the heart of the problem was the existence of an article permitting the export of sea sand to foreign countries when sand export activities had been prohibited through a Decree of the Minister of Industry and Trade in 2003, during President Megawati’s administration. Unfortunately, just like many other problems, the purpose of forming the PP as a whole has been sidelined because of the commotion. Despite the initial rejection, the Government has determined water locations where sedimentation management will be carried out. Recently, the Government announced that there are over 60 companies waiting to obtain a license/permit for the utilization, but this is not an easy process. On the other hand, questions remain.
Satgas BLBI Reform?
After two years of chasing the BLBI obligors, President Joko “Jokowi” Widodo extended the term of office of the Satuan Tugas Penanganan Hak Tagih Negara Dana Bantuan Likuiditas Bank Indonesia (Satgas BLBI) through a Presidential Decree (Keppres) towards the end of 2023 to the end of 2024.
KPK Leadership Selection : MK Decision
Mid 2023, the Constitutional Court granted the Judicial Review petition filed by Nurul Ghufron, deputy chief of the Corruption Eradication Commission (KPK), and extended the term of office of the KPK leaders for five years. In the midst of public criticism that this decision is political, towards the end of the same year, the President decided that Ghufron et al’s term of office would be extended until the end of 2024. Now, the selection process for the new set of leaders is underway and interestingly, even though in the past Ghufron’s decisions were criticized, now there are parties who are following in his footsteps and asking the Constitutional Court to redefine the provision of the law. They are none other than the former employees of the commission. Far from media coverage, this week the Court decided to deny the petition.
KPPU Institutional Transformation
In the midst of rapid changes in the world, the duties and responsibilities of the Business Competition Supervisory Commission (KPPU) have also changed and become increasingly complex. However, the magnitude of this responsibility has not been supported by the ability of KPPU as an institution. Therefore, to support the optimization and effectiveness of the implementation of duties and functions in the field of business competition supervision and supervision of partnership implementation, on Sept. 10, 2024, President Joko “Jokowi” Widodo issued Presidential Regulation No. 100/2024 which regulates the new organizational structure and work procedures in KPPU.
On the Mining Licenses for Ormas Keagamaan
Back in May 2024, President Joko "Jokowi" Widodo signed Government Regulation (PP) No. 25/2024 which amends PP No. 96/2021 concerning Implementation of Mineral and Coal Mining Business Activities. The amendments contain several new clauses, including that special...