Corruption in Pertamina: A New Case

The Attorney General’s Office (AGO) seems to be paying close attention to PT Pertamina (Persero). After announcing the investigation and inquisition into three different cases of alleged corruption in Pertamina’s subsidiaries, the AGO is starting another inquisition, this time on the purchase of shares of an Australia-based oil company.

Corruption in PT PAL Indonesia

On March 30, 2017, the Corruption Eradication Commission (KPK) conducted a Sting Operation (OTT) and arrested 17 individuals. The day after, the KPK named 4 person graft suspects, 3 of whom are the directors of PT PAL Indonesia.

Update on the E-KTP Graft Case: Miryam’s Supposed Perjury

On March 23, 2017, Miryam S Haryani, a Hanura politician and a former member of the House Commission II of the House of Representatives, attended the trial of the two suspects (Sugiharto and Irman) in the electronic identity cards (E-KTP) procurement graft case as a witness. When answering questions she suddenly asked the Court to disregard her statements in the Investigation Report (BAP) that the Corruption Eradication Commission (KPK) had compiled because she supposedly issued said statements under threat. On March 30, 2017, the Corruption Court of the Central Jakarta District Court summoned the investigators responsible for compiling Miryam’s BAP and confronted them with Miryam.

Update on Citra Maharlika’s PKPU

PT Citra Maharlika Nusantara Corpora Tbk (CPGT) (formerly known as Cipaganti) entered their period of Suspension of Debts Payment (PKPU) in November 2016 as a result of lawsuit filed by Armand Yapsunto Muharamsyah and Partners (AYMP) Law Office (formerly known as DNC Advocates). The troubled transportation company is struggling to pay their debts and offered the creditors its shares.

Bakrie’s ANTV and VIVA

Intermedia Capital (MDIA), immediate parent of TV station ANTV, booked net profit of Rp645.6 billion last year, skyrocketed 151% from 2015, thanks to strong sales revenue (advertisement) growth of 27% to Rp1.76 trillion, higher than peers (RCTI and SCTV). Intermedia, however, had only Rp15.5 billion of cash in hands.

Update on the Trans-Seram Corruption Case

On March 22, 2017 the public prosecutors of the Corruption Eradication Commission (KPK) read their demands for Amran HI Mustary, the former head of the IX National Roads Implementing Board (BPJN IX) who is now a defendant in a graft case concerning the Trans-Seram road project. Amran read his plea and admitted to his wrongdoings. In a separate hearing held on the same day, the public prosecutors read their demands for another defendant in the same case Andi Taufan Tiro, the former lawmaker from PAN.

Problems Inside the KPK

Last week, an unpleasant news made the round in journalist circles: the Corruption Eradication Commission (KPK) had published a second warning letter (SP2) for their investigator Novel Baswedan. The SP2 was reportedly issued after the institution’s own Employee Organization (Wadah Pegawai) refused the plan to ask for a high-ranking police officer to directly serve as the head of a task force in the KPK. The KPK’s Wadah Pegawai lead by Novel Baswedan believe that the request was a violation of the Law. The Chief of KPK Agus Rahardjo, however, said that Novel was not given the warning letter because of his work in the organizations.

Update on LuLu Group’s Tax Case: More Names

The trial of Rajesh “Mohan” Rajamohanan Nair, the Managing Director of a subsidiary of Lulu Group International PT EK Prima Ekspor (EKP) who was caught bribing the officials of the Directorate General of Taxation, continues. On March 27, 2017, the Court heard Mohan’s testimony and that of other parties related to the case, including the Head of the Jakarta Special Regional Office for the Directorate General of Taxation Muhammad Haniv. More names were mentioned in the hearing.

Regulatory Journal: Permenaker No. 1/2017

The Ministry of Manpower issued the Regulation of the Minister of Manpower (Permenaker) No. 1/2017 on the structure and scale of wages as per the mandate of Government Regulation (PP) No. 78/2015 on Wage System. Some workers organizations quickly voiced their dissatisfaction upon learning the new regulation. They believe that the structure prescribed do not meet the needs of workers.

The Citizen Lawsuit on Forest Fires

On March 22, 2017 the Palangka Raya District Court in Central Kalimantan partially granted the citizen lawsuit filed by the Anti Haze Movement (GAAs) and WALHI against the President of Indonesia and 6 other co-defendants. The lawsuit was filed in response to the 2015 forest fires. The demand is for the Government of Indonesia to conduct measures to prevent similar incidents in the future. The Panel of Judges agreed with the plaintiffs that the Government had ignored the safety of the people.

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