Business Competition Journal: Automatic Scooters Cartel, and Le Minerale v. Aqua
The Business Competition Supervisory Commission (KPPU) examined the allegation of cartel practices in the motorcycle business and on February 2017 decided that PT Yamaha Indonesia Motor Manufacturing (YIMM) and PT Astra Honda Motor (AHM) were guilty. AHM decided to file for an objection, but on December 5, 2017, the North Jakarta District Court decided in favor of KPPU and upheld the previous decision. In another case, the dispute between PT Tirta Fresindo Jaya (TFJ), a manufacturer of Bottled Drinking Water (AMDK) under the Le Minerale brand against two of their rivals—PT Tirta Investama (TI is producer of Aqua) and PT Balina Agung Perkasa (BAP is a distributor of Aqua)—will end soon. The KPPU is scheduled to read their decision next week. Some believe that the upcoming decision is KPPU’s chance to prove their neutrality.
Bankruptcy Journal: DAJK and Petroselat’s Insolvency
Petroselat Ltd, the subsidiary of PT Sugih Energy Tbk (SUGI) was declared bankrupt on July 5, 2017. Petroselat at first tried to negotiate with the creditors to find new investors, but the effort failed and the process of insolvency begins this month. Like Petroselat, PT Dwi Aneka Jaya Kemasindo (DAJK) was also deemed bankrupt. DAJK is still trying to challenge the decision, but the team of curators had already gathered information on the Company’s assets.
Environmental Journal: PT Kalista Alam’s Case and Bengkulu Coal Mining
The Government has been trying to assert authority on companies whose business concerns environmental issues. PT Kalista Alam has been in dispute with the Government since 2012, both in civil law and criminal law. The dispute continues. PT Kalista Alam filed another lawsuit against the Government a few months ago. The trial is ongoing in Meulaboh. Meanwhile, in Bengkulu, there are news of coal mining companies allegedly operating within conservation forest areas.
Law Journal: Objections from Poultry Players and the E-KTP Graft Case Appeal
On November 29, 2017 the West Jakarta District Court granted the objections filed by the chicken breeding companies that the Business Competition Supervisory Commission (KPPU) punish for cartel-like practices. This is one of the three recorded objections filed against the decision. Separately, the Corruption Eradication Commission (KPK) must face a new obstacle in investigating graft in the procurement of the electronic identity card (E-KTP graft case). The KPK’s appeal against the verdict for Irman and Sugiharto (the first two convicts in the case) backfired. The Panel of Appeals revoked the Justice Collaborator status that the KPK gave to Irman and Sugiharto.
Updates on Corruption in Jambi, and in the Ministry of Transportation
The Corruption Eradication Commission (KPK) conducted their latest Sting Operation in Jambi and Jakarta on November 28, 2017. Dozens of people were brought in for questioning, among others are members of the Jambi Regional House of Representative (DPRD Jambi). At first, news outlets reported that the officials in the Jambi provincial government had an agreement with the DPRD to facilitate the approval of Jambi’s 2018 budget, but later on the KPK added a little more detail on the allegation. The Ministry of Transportation is being investigated by the National Police’s Criminal Investigation Unit (Bareskrim Polri) on a separate case, i.e., the allegation of abuse in the procurement of marine patrol boats belonging to the Directorate General of Sea Transportation in the 2013 and 2014 fiscal year. In this case, the Bareskrim has named one suspect, who is the same official suspected of being involved in a similar case back in 2009.
OJK v. Bumi Asih Jaya: New Dispute and Other Disputes
It has been two years since the life insurance company PT Asuransi Jiwa Bumi Asih Jaya (AJBAJ) started their dispute with the Financial Services Authority (OJK) in court. The Company was deemed bankrupt by August 2015, but rejected the decision and fought to the stage of Reconsideration. After that, there has been no news on the legal disputes until on November 24, 2017, when the Central Jakarta District Court registered a new lawsuit filed by the Company against the OJK. This time, the Company wants the court to affirm their opinion that OJK’s lawsuit filed back in 2015 was an unlawful act. What interesting from the case is that the owner of the Company was arrested by the Jakarta Metropolitan Police on September 2017. The case also has been developed to several other criminal cases including the case of alleged money laundering examined by the Riau Islands Prosecutor’s Offices.
More Problems for Pertamina
Since 2015, PT Pertamina (Persero) has been subject to various National Police and Attorney General’s Office investigations on allegations of corruption. But apart from that, the Company has had various legal problems. Last week, the South Jakarta District Court registered a tort lawsuit filed by several parties against PT Pertamina Dana Ventura (PDV) over disputes on employees savings amounting to nearly Rp800 billion. A few days later, the Central Jakarta District Court registered a default lawsuit filed by Pertamina’s subsidiary PT Patra Jasa against PT Patra Indonesia. The lawsuit also lists PT Indobuild.co founded by Pontjo Sutowo as co-defendant.
Sting Operation in Jambi
The Corruption Eradication Commission (KPK) conducted a Sting Operation in Jambi and Jakarta on November 28, 2017. This is the first Sting Operation in the province since 2008 and only a week after the province signed a Memorandum of Understanding with the KPK. The KPK did not provide details, but the parties arrested are allegedly involved in a bribery attempt.
Indonesia v. Churchill Mining: Annulment of Award
On December 6, 2016, after years of hearings, the International Centre for Settlement of Investment Dispute (ICSID) ruled in favor of the Government of Indonesia in the dispute with Churchill Mining Plc and its subsidiary Planet Mining Pty Ltd over the companies’ exploration activities in East Kutai regency, East Kalimantan. The companies were required to pay compensation to the State and this is why the Tribunal award was an important victory for Indonesia. On March, 2017, however, Churchill filed for annulment of award and subsequently asked for a stay of enforcement of the award. On November 22, 2017, Churchill announced that they were considering Indonesia’s counter memorial on annulment, which was submitted on October 20, 2017 and Churchill has until December 22, 2017 to file a reply.
Corruption Journal: Mojokerto Mayor, and PT Berdikari
The Corruption Eradication Commission (KPK) announced that they had named the Mayor of Mojokerto (East Java) Mas`ud Yunus as a suspect of bribery. The KPK made the move after examining the result of the Sting Operation they conducted in June 2017. Following said Sting Operation, the KPK named 4 suspects including the Chairman of the Mojokerto DPRD. On a separate case, the KPK expedited the finalization of the docket of the graft suspects involved in the problematic procurement of urea fertilizer between PT Berdikari and PT Perhutani. The suspects will be prosecuted by the Corruption Court of the Semarang District Court in Central Java.