The Eradication of Pungli

“Pungli”, the illegal levies that corrupt public officials charge for, among others, the processing of licenses has become a national discussion following the raid conducted on the afternoon of October 11, 2016 at the Ministry of Transportation. The National Police’s Headquarters and the Jakarta Metropolitan Police jointly conducted the raid after receiving reports from the Minister of Transportation. Six individuals were apprehended, and three were later named as suspects. President Joko “Jokowi” Widodo monitored the raid and subsequently instructed his subordinates to crackdown on pungli in every governmental institutions and establish a special task force to eradicate pungli. On October 13, 2016, the Coordinating Minister for Politics, Law, and Security Wiranto formed the task force and named it the Saber Pungli (Pungli Eradication) Task Force.

Allegations of Food Cartel: Verdict

The Business Competition Supervisory Commission (KPPU) has finished their investigation and trial into the allegations of cartel practices involving 12 major companies engaged in chicken breeding. On October 13, 2016, the Commission’s Assembly decided in favor of the investigators and stated that the companies involved were guilty as charged.

Shinta Group: Family Feud

Juniver Girsang & Partners, attorney of Lek Chui Eng, Ms Lynn Hermijanto, and Ms Stacey Hermijanto, issued half-page announcement Thursday (Oct 13) to rebuff claims by client of Rudy Lontoh & Partners published earlier on Wednesday regarding the inheritance of the late Toto Hermijanto, founder of Shinta Group.

Updates on Grahalintas Properti’s PKPU

The debt dispute between PT Grahalintas Properti against one of its creditors PT Bank CIMB Niaga Tbk (BNGA) continues. In the last meeting of creditors held on October 11, 2016 the creditors agreed to give Grahalintas a time extension of 30 days. The extension is needed because the Company still has to discuss the requirements demanded by BNGA. BNGA, who’s the only separatist creditor with the biggest amount of bill registered, demanded a personal guarantee from Samin Tan.

Updates on Sujaya Group’s PKPU

Since last week, Sujaya Group’s two subsidiaries—PT Bintang Jaya Proteina Feedmill (Bintang Jaya) and PT Sinka Sinye Agrotama (Sinka Sinye)—has had to face a lawsuit on Suspension of Debts Payment (PKPU) filed by HSBC Banking Corporation Ltd. HSBC claims that both companies owe the Bank Rp685.12 billion. Sujaya Group, however, begs to differ. At the hearing held on October 11, 2016, Sujaya Group through its legal counsel Aji Wijaya said that the petition for debts restructuring had a legal formal defect and there was confusion about the legal system used.

Corruption in the Ministry of Transportation

In the afternoon of October 11, 2016 the National Police Headquarters and the Jakarta Metropolitan Police conducted a raid at the Ministry of Transportation. The raid was done following reports of extortion in the Ministry. What’s interesting is that Minister of Transportation Budi Karya Sumadi was the one who reported the extortion in his ranks.

The End of Dayaindo’s Insolvency

The Commercial Court of the Central Jakarta District Court terminated the bankruptcy proceeding of PT Dayaindo Resources International Tbk (KARK) and its subsidiary PT Daya Mandiri Resources Indonesia (DMRI) on October 10, 2016. The decision was made after the team of curators claimed that they could not find the company’s assets. Dayaindo was declared bankrupt since 2013 because it was unable to resolve its debt dispute.

Shinta Group & Inheritance of Toto Hermijanto

Toto Hermijanto, founder of Shinta Group, one of the largest garment and textile players in the country, passed away on July 30, 2016 in Singapore. On Tuesday, October 11, Lontoh & Partners Law Office, published a warning letter regarding the transfer/transaction of Toto’s inheritance.

E-KTP Graft Case: Developments?

Recently, the Deputy Chief of the Corruption Eradication Commission (KPK) Saut Situmorang told the press that the KPK would question Golkar Chairman Setya Novanto in connection with the allegations of graft in the procurement of electronic identity card (e-KTP). But to this day, the KPK still have not announced when they’d question Novanto; instead the KPK have summoned several other government officials and Novanto’s colleague.

MAXpower Bribery Case (3)

Ahmad Raja Siregar, lawyer for three minority shareholders of PT MAXpower Indonesia, dismissed allegations about their involvement in the bribery case being investigated in the United States of America, Bisnis Indonesia reported. The lawyer, however, revealed internal conflicts in the Company controlled by Standard Chartered Private Equity.

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