2023 Outlook : Perppu on Job Creation
Towards the end of last year, the Constitutional Court made a historic decision. With four dissenting opinions, the Assembly of Justices ruled that the process of establishing Law No. 11/2020 concerning Job Creation is formally flawed. This is the first time in Indonesia’s judicial history that the Assembly has granted a judicial review application related to the formal aspects of a law. The Government has two years to fix all the problems, and as expected, the first thing that was corrected was the Law on the Establishment of Legislation. What we did not anticipate was the Government’s decision to issue a Government Regulation in Lieu of Law (Perppu). The possibility of the Perppu being ratified to overcome legal vacuum had previously been dismissed by the Government, then the situation had calmed down a bit. But here we are, welcoming the new year with the said Perppu. The Government is now arguing that a Perppu is needed to face 2023. Interesting.
2023 Outlook : Corruption Eradication Commission
Over the past three years, the KPK under the leadership of Firli Bahuri has worked under pressure and ridicule from the public. There are many reasons for public disapproval, this was exacerbated by the revelations of scandals, including one that forced one of the...
On the Aksi Cepat Tanggap Scandal : Demands
Trial of three defendants in the case of alleged crimes committed by the officials of Aksi Cepat Tanggap (ACT) will end soon. The proceedings concluded within less than two months so we did not expect much, and indeed the prosecutors only demanded light punishment for...
Latest on the AW-101 Procurement Case
Six years has gone by since the Corruption Eradication Commission (KPK) announced that they had named the President Director of PT Diratama Jaya Mandiri, Irfan Kurnia Saleh, a graft suspect in a supposedly problematic procurement of AgustaWestland helicopter. Irfan...
Latest on Corruption in Pemalang
The prosecution stage in the case of alleged corruption in the Pemalang regency continues. This week, Pemalang Regent, Mukti Agung Wibowo, finally stands trial. Mukti is accused of accepting over Rp7.5 billion in grafts. As we previously reported, the Corruption...
Revisiting the Troubled Pelita Cengkareng Paper
Four years ago, the dispute between Luxembourg’s Molucca Holdings S.à.r.l and PT Pelita Cengkareng Paper (PT PCP) emerged. Since then, the parties continued to exchange lawsuits. The dispute ended in Pelita Cengkareng’s victory. Last year we learned that another lawsuit was registered at the Commercial Court at the Central Jakarta District Court with the aim of having Pelita Cengkareng restructure its debts. The company still managed to resolve their dispute with peace agreement with the creditors. However the peaceful situation did not last long. From October 2022 until last week, multiple lawsuits were registered against PT PCP, all of which aimed to annul the peace agreement.
On the Cooking Oil Scandal : Demands
One of the Attorney General’s Office (AGO) biggest achievements this year was probably the revelation of the cooking oil scandal. However, what started as a shock to the nation, turned out to be less of a surprise in court. The public no longer paid much attention to the trial. The indictments for the defendants were read out in the last week of August 2022, and in just four months, towards the end of last week, the demands for the defendants were read out.
Bank Mega v. Gudang Garam
A business dispute involving companies under the CT Corp and Gudang Garam business group took place far from the media spotlight. This dispute has been examined in court for more than a year and now the latest court proceeding is ongoing at the Sidoarjo District Court. What happened?
Revisiting Lumpur Lapindo
Nearly 17 years ago, on May 29, 2006, the Lapindo mudflow in Porong, Sidoarjo regency, East Java, overflowed for the first time. It is known that the mudflow originated from an explosion on a gas drilling site owned by Lapindo Brantas Inc. As a result of the explosion, 16 villages in three sub-districts were submerged and had to be erased from the map. On top of that, at least 30 factories were forced to close. The company and the Government are still throwing responsibility at each other due to the complexity of this problem, victims must seek their own justice. This week, several companies filed a lawsuit against the President and the Minister of Public Works and Public Housing (PUPR).
2023 Outlook : Taxing Transactions through Electronic Systems
It has been over two years since the Ministry of Finance expanded the tax base by collecting Value Added Tax (VAT/PPN) for digital products in trading through the electronic system (PMSE). The number of collectors continues to increase, towards the end of this year, there are already 134 companies with the same set of responsibilities. The Government has received more than Rp9.6 trillion tax value in total and has issued an additional legal basis, which provides authority for the Government to appoint local collectors. Will this new legal basis be useful and contribute to the 2023 VAT/PPN revenue target?