Judicial Review on the Law on State-Owned Enterprises
In December 2016, the Government promulgated the Government Regulation (PP) No. 72/2016 (to revise the PP No. 44/2005 on Procedure and Administration of the State Capital Investment in State-Owned Enterprises and Limited Liability Companies). The PP 72/2016 was meant to protect the Government’s plan to establish holding companies for State-Owned Enterprises (BUMN). Several months later, the Government issued PP No. 47/2017 as the the legal basis for the establishment of PT Indonesia Asahan Aluminum (Inalum) (Persero) as the holding company of State-Owned Enterprises (BUMN) in the field of mining. The legality of two PPs were then challenged at the Supreme Court. On March 2018, in relation to the issuance of the two PP, several parties decided to file a Judicial Review on the Law No. 19/2003 on State-Owned Enterprises at the Constitutional Court. The latest hearing was held on May 23, 2018.
Law Journal
PT Pazia Pillar Mercycom, one of Indonesia’s well-known electronics retailer, escaped the threat of bankruptcy last year. That said, the Company still has many problems. The peace agreement was quickly sued by the Company’s creditors and the President Director of the Company was investigated in a criminal case. Last week, the Central Jakarta District Court registered a case mentioning the name of the President Director as a defendant in a case of alleged embezzlement, but around the same time, the Company also filed a lawsuit at the West Jakarta District Court related to the same dispute.
The Counter-Terrorism Law Amended
After almost three years of waiting, the House of Representatives finally promulgated the amendment to the Counter-Terrorism Law on Friday last week. There are several new things mentioned in the amendment, making it a stark contrast compared to the previous law. The Government has not published the final version of the amendment, but the House of Representatives has mentioned the most crucial points in the new law.
Corruption Journal
The Corruption Court of the Central Jakarta District Court held the first hearing on the trial of the former Regent of Hulu Sungai Tengah (HST) Abdul Latif on May 24, 2018. Abdul stands trial as a suspect of bribery. At the same day, the same court read their verdict for the person who gave the bribes to Abdul Latif. Separately, the Corruption Eradication Commission (KPK) announced the chronology of their latest Sting Operation in Southeast Sulawesi.
Corruption Journal
On May 23, 2018, the Corruption Eradication Commission (KPK) conducted another Sting Operation in Southeast Sulawesi during which they arrested the Regent of South Buton, who’s only been in office for a year. The KPK also examined several Golkar politicians to continue their investigation into the bribery involving the Maritime Security Agency (Bakamla). Separately, the Attorney General’s Office named a new suspect in a corruption case involving PT Sang Hyang Seri (Persero).
Lawsuit Against Duta Pertiwi Tbk
Last week, dozens of individuals filed a lawsuit against PT Duta Pertiwi Tbk (DUTI), the sister company of PT Bumi Serpong Damai Tbk (BSDE). The plaintiffs claimed to be owners of land where DUTI had planned to build their next project. In the lawsuit, the plaintiffs demanded a compensation of over Rp5 trillion.
Kaharudin Ongko v. BFI Finance: Updates
Last week, the representatives of 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) announced their plan to file a lawsuit against PT Bunas Finance Indonesia Tbk (now PT BFI Finance Tbk) (BFIN). The dispute between the parties is related to shares ownership which has been going on for almost two decades. On May 16, 2018, the Company kept its promise and filed a lawsuit against the Minister of Law and Human Rights to the Jakarta State Administrative Court, demanding the Minister to annul several decisions. Two days after that, the Company’s representatives filed a police report against BFIN’s current and formers directors.
Law Journal: Bank Mandiri’s Credit Facility Case, and Jaya Smart Technology’s PKPU
The Supreme Audit Agency (BPK) visited the Attorney General’s Office (AGO) on May 21, 2018 and brought with them the audit result on the allegation of corruption on the provision of credit facilities from PT Bank Mandiri (Persero) Tbk (BMRI) to PT Tirta Amarta Bottling (TAB). The amount of calculation of State losses in the case is a lot more than the calculation previously predicted by Bank Mandiri’s internal audit. With the audit result in hand, the AGO is set to expedite the docket of the first suspect in the case to the stage of prosecution this week. Separately the process of debts restructuring of PT Jaya Smart Technology of Royal Standard Group continues, but the process is getting complicated as the Company refused to acknowledge the bills submitted by Molucca Holdings S.à.r.l. This is the collateral damage caused by Molucca’s failure to force PT Pelita Cengkareng Paper to pay off its debts.
A Judicial Review on the Traffic and Road Transportation Law
Even though Gojek is Indonesia’s first unicorn, the fact to the matter is that motorcycle taxi or ojek is not one of the recognized public transportation means in Indonesia’s laws and regulations. This is why several parties have tried to challenged the Law No. 22/2009 on Road Traffic and Road Transportation. The most recent attempt to challenge the law at the Constitutional Court came from the Confederation of Indonesian Workers Union (KSPI).
Law Journal
Last month, various national media outlets reported that the Jakarta Metropolitan police was investigating allegations of fraud committed by two politicians of two different political parties. Last week, the North Sumatera police announced that they had named Bonaran Situmeang a suspect in a similar case. The victims are civil servant candidates of the Central Tapanuli regency. At the same time, the police also named Bonaran’s former vice regent one Syukran Tanjung a suspect of fraud on another issue. The Corruption Eradication Commission, meanwhile, announced that they had named a new suspect in the Kebumen regency graft case. The suspect is a company owned by the former Regent, who is also a suspect in the case. The company is the first corporate suspect of a money laundering.