Updates on Choel Mallarangeng’s Trial

The trial Andi Zoelkarnaen Mallarangeng (familiarly called by the name Choel), who is being suspected of graft in the development of the Hambalang Sports School (P3SON), continues. Within several weeks, the Panel of Judges have heard the accounts of several important witnesses, including the former Democratic Party politician Angelina Sondakh. In the hearing held on May 29, 2017, the Corruption Court of the Central Jakarta District Court heard the accounts of Muhammad Nazaruddin, the former treasurer of the Democratic Party.

Confusion with the Minister of Energy and Mineral Resources Regulation No.34/2017

To this day there has not been any new progress on the development of smelters. The Ministry of Energy and Mineral Resources (ESDM) noted that as of 2016, only 30 percent of the mining companies required to construct a smelter have done so, despite the requirement being put in place since 2014 with the raw minerals export ban. In a bid to change the situation for the good, ESDM decided to publish the Minister of ESDM regulation (Permen No. 34/2017), which contains a clause promising extended operating license to those building their smelter.

PT Diratama Jaya Mandiri & The Helicopter Procurement Graft Case

Military commander General Gatot Nurmantyo has named three suspects in the controversial procurement of AgustaWestland (AW) 1010 helicopter. They are all active military officers, including high-ranking officer Fachry Adamy. Preliminary review pointed to Rp220 billion of State losses in the Rp738 billion project.

The Dispute Related to the Imported Cattle and Beef Cartel

Last year, the Business Competition Supervisory Commission (KPPU) examined the allegations of cartel-like practices involving 32 feedloter. The KPPU later decided that the companies had conspired to influence the prices of beef around the Greater Jakarta area. All of them were sentenced to paying a fine to the extent of their involvement in the conspiracy. But the companies decided to file an objection at the Central Jakarta District Court and the first hearing was held on May 23, 2017.

Sandiaga Uno and Nazaruddin’s Cases

The former Democratic Party Treasurer Muhammad Nazaruddin, who is now a graft convict, ran a side business under his Permai Group, which used to be the bank for a lot of private companies and State-Owned Enterprises (BUMN). The companies and BUMNs paid Permai Group for the service the latter provided related to the construction projects funded by the Government. Nazaruddin’s involvement in crime have been investigated and prosecuted since 2009, but the process is still ongoing. In connection to this investigation, on May 23, 2017, the Jakarta Vice Governor-elect Sandiaga Uno (Sandi) was examined by the Corruption Eradication Commission (KPK). Sandi was questioned in his capacity as a witness for the former President Director of PT Duta Graha Indah (DGI) (now PT Nusa Konstruksi Enjiniring) Dudung Purwadi, who is a suspect on two different cases of corruption.

Updates on the E-KTP Graft Case

The Corruption Court of the Central Jakarta District Court continued the trial of the two defendants in the electronic identity cards (E-KTP) procurement graft case. In the hearing held on May 22, 2017, the Court listened to the accounts of several civil servants familiar with the case. Apart from the trial, the examination of the witnesses of Andi Agustinus a.k.a Andi Narogong, the new suspect on the case, also moved forward. Several politicians in Golkar made statements cornering the Speaker of the House of Representatives Setya Novanto, who allegedly played an important role in the case.

Miryam’s Pre-Trial and Allegations

Miryam S. Haryani, the Hanura politician and former member of the House Commission II of the House of Representatives, was named as a suspect of perjury on April 5, 2017. Miryam filed a pre-trial lawsuit and claimed that the KPK had no legal basis to investigate her on perjury. On May 23, 2017, the South Jakarta District Court decided in favor of the Corruption Eradication Commission (KPK) and Miryam’s status as a suspect was upheld.

More on Sandipala Arthaputra and the E-KTP Graft Case

Last week, Paulus Tannos, the director of PT Sandipala Arthaputra and the key person in the trial of the electronic identity cards (E-KTP) graft suspects, gave his testimony via teleconference. Paulus chose attendance via teleconference out of fear for his and his family’s safety. What did Paulus say in the trial?

Tehate Putra Tunggal Escaped Bankruptcy

PT Tehate Putra Tunggal (a partner of PT Perusahaan Listrik Negara (PLN)), and its subsidiary PT Trimanten Gemilang has escaped bankruptcy after they were able to resolve their period of Suspension of Debts Payments (PKPU) peacefully. All of the Company’s creditors agreed to accept the former’s peace proposal and the result was promulgated on May 17, 2017.

Sandipala Arthaputra v. STMicroelectronics Asia Pacific Pte Ltd and others (Part II)

The heart of the dispute between PT Sandipala Arthaputra and Oxel Systems Pte Ltd is an agreement both parties had entered into. The Singapore High Court’s judgement document explains that between October 2011 and early November 2011, Paulus Tannos had several meetings with Andi Winata. On around November 9, 2011, against all odds, Sandipala entered into an agreement with Oxel under which Oxel agreed to supply 100m chips described as “ST-Micro ST23YR12AW0NPACA”. These are ST23YR12 chips encoded with Oxel’s proprietary PAC software for the chip’s operating system. The PAC operating system was owned by one of Oxel’s suppliers, Logii Inc. Sandipala and Paulus claimed that they had been induced into contracting for the supply of chips that could not be used to produce the E-KTP Cards, or which could not be used without changes to the E-KTP system as a whole. According to Sandipala, the PNRI Consortium, through Quadra and its sub-contractor, Softorb, contracted with ST-AP to supply 100,000 pieces of electronic chips for use in the tender evaluation. Sandipala also claims that Oxel has breached its duty of care by:

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