On the BPK Graft Scandal: The Trial
The Indonesian Supreme Audit Agency (BPK) and the Ministry of Villages, Development of Disadvantaged Regions, and Transmigration (Kemendes) are under intense scrutiny after the Corruption Eradication Commission (KPK) arrested several of their officials on account of bribery in May 2017. The KPK named four suspects on the case and the first trial began in August 2017. The trial has uncovered some interesting trivia.
The Arthaloka Land Dispute
Last week, the South Jakarta District Court registered a tort lawsuit filed by one Sri Rachma Chandrawati against one Raden Mas Endytiokusumo and one Bernando Andliano. In the petition, Rachma demands the defendants to pay compensation of Rp200 billion. The parties have been in dispute for several years, and the main case is related to a land dispute that has lasted for decades involving PT Arthaloka Indonesia, a subsidiary of PT Tabungan dan Asuransi Pensiun (Persero) (Taspen). What is really going on?
On the E-KTP Graft Case: Pre-Trial and a New Suspect
On September 27, 2017 the South Jakarta District Court continued the hearing on the pre-trial lawsuit filed by the Speaker of the House of Representatives Setya Novanto. Novanto’s legal counsels and the Corruption Eradication Commission (KPK) both summoned expert witnesses to support their reasonings. Apart from the trial, the investigation and inquisition on the E-KTP graft case continues, with the KPK announcing a new suspect.
Kutai Kertanegara Graft Case
The Corruption Eradication Commission (KPK), with the help of the Kutai Kertanegara Police, raided the Kutai Kertanegara (Kukar) Regent Office in the morning of September 26, 2017. The incident led to reports that the Regent of Kukar was ensnared in a Sting Operation (OTT). The KPK, however, dismissed the reports. The KPK said that they did indeed name the Regent of Kutai Kertanegara Rita Widyasari (Golkar) a suspect of a graft case, but she was not caught in an OTT. She’s been named a suspect as a result of an investigation. The KPK didn’t provide any more details..
Allianz Insurance Under Investigation
The Jakarta Metropolitan Police (Polda Metro) recently confirmed the reports that they’re investigating allegations of crime committed by PT Asuransi Allianz Life Indonesia. The Polda Metro have named two suspects in this case, including former President Director of the Company Joachim Wessling. Two Allianz Life insurance policy holder reported the crime to the police.
The Amendment of the Broadcasting Law
The amendment of the Broadcasting is still under deliberation. The process has entered the stage of harmonization with Legislative Body (Baleg) and the House Commission I of the House of Representatives in charge of the process. Discussion, however, has reportedly reached a dead end due to differences of opinion between the two parties. The House Commission 1 considers Baleg as without authority in changing the substance of the amendment bill, whereas Baleg insists that they have the authority as per the law.
Updates on Petroselat’s Bankruptcy
Petroselat Ltd, the subsidiary of PT Sugih Energy Tbk (SUGI), is on the edge of insolvency and they have only three weeks to find new investor after the previous potential investor suddenly cancelled their plan in the middle of the due diligence process. If Petroselat cannot make amends with the creditors after the deadline, then the process of insolvency will commence, but it would be a loss for the creditors.
Setya Novanto’s Pre-Trial Continues
The sole presiding judge on the hearing of the pre-trial lawsuit filed by the Speaker of the House of Representatives Setya Novanto Judge Cepi Iskandar decided to reject the exceptions (eksepsi) or answer to the lawsuit presented by the Corruption Eradication Commission (KPK). So the examination of the lawsuit continues with the South Jakarta District Court having the authority to examine the dispute. Meanwhile, the KPK continues the examination of witnesses on the E-KTP graft case.
KPK’s Latest Sting Operation and the Management of Football Clubs
The Corruption Eradication Commission (KPK) conducted a Sting Operation and arrested the Mayor of Cilegon Tubagus Iman Ariyadi (Iman). The KPK said the case uncovered a new method of bribery—by way of Corporate Social Responsibility (CSR) funds for Cilegon United Football Club (CUFC).
Bank Mandiri and A Series of Fictitious Credit Facility
The Attorney General’s Office (AGO) announced that it is investigating allegation of corruption on the provision of credit facilities from PT Bank Mandiri (Persero) Tbk (bmri) to PT Tirta Amarta Bottling (TAB). The estimated losses sustained by the State is Rp 1 trillion. This is not the first time for the AGO to investigate such an allegation against BMRI.