Updates on Nur Alam’s Case
The Corruption Eradication Commission (KPK) continues to investigate the case of alleged corruption involving the Southeast Sulawesi Governor Nur Alam. Dozens of Southeast Sulawesi Regional Government officials are being examined, including representatives from private sectors and the Ministry of Energy and Mineral Resources. The KPK has already imposed a travel ban on four individuals.
Updates on Bumi Resources’ PKPU
PT Bumi Resources Tbk (BUMI), which has been in a period of Suspension of Debts Payment (PKPU), submitted a disclosure to the Financial Services Authority (OJK)’s Securities and Exchange Commission on August 30, 2016 concerning the sale of shares of its subsidiaries. In this process, BUMI acted as a guarantor and the proceeds were used for paying BUMI’s debt to one of its creditors. The PKPU administrators approved of these transactions even though it was reported within the period of PKPU. BUMI’s PKPU is supposed to end on September 30, 2016.
PLN v. Betasurya Tatagraha
PT Perusahaan Listrik Negara (Persero) (PLN) is once again facing a dispute with one of its partners PT Betasurya Tatagraha. The object of the disagreement is the implementation of an employment agreement. This dispute was supposed to have been resolved at the Indonesian National Arbitration Board (BANI) in May 2016. BANI declared PLN guilty of default and must compensate Betasurya no later than 45 days after the verdict was read, but Betasurya claimed that PLN had not honored the verdict.
Updates on Brent Ventura’s PKPU
PT Brent Ventura received a 45-day extension of period of Suspension of Debts Payment (PKPU). The Panel of Judges of the Commercial Court of the Central Jakarta District Court read the decision on September 6, 2016. Brent Ventura asked for the extension because the majority of their creditors still refused to agree on the peace proposals they had offered. What makes this process even more interesting is that there are several creditors that have acted on their own and directly brought their bills to the Director of Brent Ventura, who is currently serving his sentence in prison.
The End of the Investigation into Freeport Conspiracy? (Part II)
After six months of proceedings, on September 7, 2016, the Constitutional Court (MK) finally reached their decisions regarding the petitions for judicial reviews filed by Setya Novanto. The petitions were filed in connection with the ongoing investigation on the case of alleged conspiracy related to the renewal of PT Freeport Indonesia’s contract involving Setya Novanto and Muhammad Riza Chalid.
The End of the Investigation into Freeport Conspiracy? (Part I)
We can still remember how the political atmosphere heated in mid-2015 after the then Minister of Energy and Mineral Resources (ESDM) Sudirman Said filed a report on a suspected attempt at abuse of authority by the then Speaker of the House of Representatives (DPR) Setya Novanto. Novanto and his friend businessman Muhammad Riza Chalid had supposedly met with PT Freeport Indonesia and promised the Company an extension of contract. Sudirman Said brought a sound recording of the alleged meeting to the DPR’s Board of Ethics (MKD), and parallel to that Sudirman also reported the case to the Attorney General’s Office (AGO). It was around this time that Setya Novanto filed two petitions for judicial review at the Constitutional Court (MK). Novanto’s judicial review requests are focused on the four provisions of law he deemed unconstitutional. On September 7, 2016, the MK granted Setya Novanto’s petitions.
Sukanto Tanoto & The ‘Adoptive Father’
Last week some media quoted Anwar Nasution, former senior deputy governor of Bank Indonesia and chief of the Supreme Audit Agency (BPK), urging the arrest of tycoon Sukanto Tanoto, owner of RGE Group. This week, ministry of environment and forestry affairs, starts investigation into the alleged violation of laws committed by Riau Andalan Pulp & Paper (RAPP), subsidiary of RGE.
Lippo Group Bribery : Indictment for Edy Nasution
In April earlier this year, the Corruption Eradication Commission (KPK) caught Edy receiving bribes from Doddy Arianto Supeno, an employee of PT Artha Pratama Anugerah (APP)—a subsidiary of Lippo Group. And finally, on September 7, 2016,the Corruption Court of the Central Jakarta District Court held the inaugural hearing of the trial of their own Registrar Edy Nasution. The agenda of the hearing was the reading of the indictment against Edy, in the process of which surprises were revealed, including the amount of bribes Edy allegedly took.
The Ballooning Royalty & Fees Paid by Multinationals (1)
Holcim Indonesia (SMCB), the third largest cement producer in Indonesia, reported net loss of Rp51 billion in the first half, while two of the largest producers posted substantial profit. Holcim, parent and controlling shareholder of SMCB, however, enjoyed Rp464 billion revenues from the use of HC-Logo by SMCB in the period.
PKPU for Bhineka Karya Manunggal
PT Bhineka Karya Manunggal (BKM), a subsidiary of Guna Group, had to once again face a lawsuit on Suspension of Debts Payment (PKPU) from one of its creditors of PT Lautan Warna Sari (LWS). The lawsuit is the second PKPU lawsuit the Company has had to face within two months. Although the trials have been held since the end of July 2016, the process of verification of the amount of debt held by the PKPU administrators is still ongoing.