Updates on Mobile-8 Tax Restitution Case
The Attorney General’s Office (AGO) continues to investigate the allegation of corruption in the tax restitution of PT Mobile-8 Telecom Tbk (Mobile-8). The AGO have questioned former commissioners and directors of the Company. On February 15 and 16, 2016, the AGO moved to investigate other companies that may be implicated in this case.
Updates on the Corruption Case in the Ministry of Transportation
The investigation into the case of alleged corruption on the Phase III Development of the Education and Training Center for Marine Studies (BP21P) have been conducted for more than a year. The investigators of the Corruption Eradication Commission (KPK) have named 5 suspects and moved to trial against 3 suspects.
Updates on the Bank DKI Case
Ten months have passed since the High Court of Jakarta (Kejati Jakarta) started the investigation and inquisition into the misuse of credit facility from the Jakarta-region-owned Bank DKI to PT Likotama Harum and PT Mangkubuana Hutama Jaya worth Rp230 billion. To date, the Kejati has named 4 suspects, and detained 2 for investigation purpose.
The Arrest of MA Official and Corruption in Development Projects
The Corruption Eradication Commission (KPK) once again conducted a Caught-In-the-Act operation (OTT) on February 12, 2016 and arrested six people suspected of being involved in briberies related to delays in issuing the copy of verdict of cassation. Three of those arrested were named suspects. The KPK has reportedly targeted the suspects since October 2015.
Bankruptcy Lawsuit against Merpati
Although the company stopped operating in 2014, PT Merpati Nusantara Airlines (Persero) (Merpati) has not been able to overcome problems. After various privatization and revitalization plans failed to move forward, Merpati has to face a bankruptcy lawsuit filed by a former employee at the Commercial Court of the Central Jakarta District Court.
Batavia Air’s Shareholders v. Directorate General of Taxation
The bankruptcy dispute between PT Metro Batavia (Batavia Air) and the team of curators administering the Company’s bankruptcy is still ongoing, but the situation may have gotten more complicated. Four of Batavia Air’s shareholders reportedly filed lawsuits against the Directorate General for Taxation (Ditjen Pajak). Four mediation attempts have failed to produce favorable results. And now the fourth trial enters.
Graft Case in the Ministry of Agriculture
On February 9, 2016 the Corruption Eradication Commission (KPK) escalated the status of the case of alleged corruption in the procurement of biological fertilizer at the Directorate General of Horticulture in the Ministry of Agriculture (Kemtan) from investigation to the stage of inquisition. At the same time the KPK also named three suspects. The case has been indirectly linked to the case of alleged bribery on the determination of beef import quotas involving members of the Prosperous Justice Party (PKS).
Pressures on Djarum Group
The Supreme Audit Agency (BPK) declared potential loss of Rp1.2 trillion to the State from series of agreements between state hotel operator PT Hotel Indonesia Natour (HIN) and two entities of Djarum Group namely PT Cipta Karya Bumi Indah (CKBI) and PT Grand Indonesia.
Development in the TPPI Case
The National Police’s Criminal Investigation Division (Bareskrim POLRI) has finally detained Raden Priyono, the former chief of the powerful upstream oil & gas regulator body BPMigas in connection with the allegation of graft in the supply of condensates to PT Trans Pacific Petrochemical Indotama (TPPI). This is a breakthrough given that the Police launched their investigation last year, though the continuation of this investigation is also important to watch.
PKPU for Trikomsel
PT Trikomsel Oke Tbk (TRIO) is in their period of Suspension of Debts Payment (PKPU) after being sued by one of its creditor. TRIO is in PKPU for 45 days. On February 11, 2016, TRIO submitted a peace proposal to the creditors, but the creditors have not agreed to the proposal. TRIO only has less than two weeks to complete the negotiation of peace agreements with all of its creditors.