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 CORRUPTION

 

 

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THE NAZARUDDIN CASE:

TRIAL & CONVICTION

 

 

 

 

 

 

 

CORRUPTION HISTORY

 

 WESTERN CORPORATOCRACY
THE SOURCE OF INDONESIA'S DEEPROOTED CORRUPTION

 

 

 

THE OTHER GAME IN TOWN - Looking the other way

Football may be Indonesia’s most popular sport,
but it is also riven with corruption –

and the Indonesian media is looking the other way

 

 

 

 

 

Andi Mallarangeng Sentenced to 4 Years Over Hambalang Graft
By Jakarta Globe on 02:53 pm Jul 18, 2014

Jakarta. Former Youth and Sport Affairs minister Andi Alfian Mallarangeng was sentenced to four years in jail on Friday over his role in corruption connected to the construction of a training center for Indonesian elite athletes in West Java.
“The defendant has been proved validly and convincingly guilty of corruption,” the presiding judge said at the Jakarta Anti Corruption Court on Friday.
On top of the jail sentence the judge ordered Andi to pay a fine of Rp 200 million ($17,000).

Corruption Eradication Commission (KPK) spokesman Johan Budi said he had expected the judges to sentence Andi according to the prosecution’s demand of 10 years in jail and a Rp 300 million fine. The prosecutor also wanted Andi to compensate the state loss of Rp 2.5 billion, or receive a further two years in jail.

Andi was convicted of receiving Rp 4 billion and $550,000 from a company called Global Daya Manunggal through his brother, Andi Zulkarnaen Mallarangeng, who also goes by Choel. Rp 2 billion was allegedly used to fund his campaign in the Democratic Party chair election, although the accusation of fraudulent campaign contributions was not a part of this trial, which addressed the graft charges only.

High-profile officials, businessmen and politicians have been brought to book over the case, many of whom were from President Susilo Bambang Yudhoyno’s Democratic Party.
Dedy Kusdinar, the former financial and domestic bureau chief at the Sports Ministry, was the first individual to be charged. The former treasurer of the Democratic Party, Anas Urbaningrum, is awaiting trial for his part in the affair.

The verdict marks a spectacular fall from grace for Andi, once regarded as a politician of great promise. The first day of his trial heard that he had initially requested a $4 million bribe to push through the contract to Adhi Karya, a state-owned construction company. Teuku Bagus M. Noor — the operations chief at Adhi Karya — has also been convicted.
“In mid-2010, Deddy and Wafid met Choel Mallarangeng in the Japanese restaurant of the Grand Hyatt hotel in Jakarta,” prosecutor I Kadek Wiradana said when reading out Andi’s indictment prior to the trial. “During the meeting, Choel said his elder brother Andi Mallarangeng had been serving [as the sports minister] for a year but hadn’t received anything.”

The Hambalang sports center was intended to be a promising piece of sports infrastructure from where Indonesia’s athletes could make use of first-class facilities to further their prospects in domestic and international competition.
Instead, corruption allowed the budget to balloon to approximately Rp 2.5 trillion, running up a loss to the public purse of Rp 470 billion in the process, before it was mothballed. The center now lies unfinished, blighting the landscape on a West Java hillside.

Andi said he would file an appeal.

 

 

 

 


Long Way to Go to Rid Indonesia of Corruption
By Jakarta Globe on 10:23 pm Jul 07, 2014

Jakarta. Regardless of who gets elected on Wednesday, the winner has to realize that there is much that needs to be done to ensure that the rule of law is upheld in Indonesia.
The Jakarta Anti-Corruption Court sentenced Akil Mochtar, former chief justice of the Constitutional Court, to life in prison recently. He was found guilty of having sold off Indonesia’s powerful local government seats to corrupt politicians.

In one sense, the sentencing proved that justice can prevail in Indonesia. But in another sense, one cannot help but wonder how the chief justice of the nation’s highest court could end up on trial for corruption. How did we get there? How could the nation’s embodiment of justice be found guilty of breaking the law?

As it is, upholding the rule of law remains a serious challenge in Indonesia. The Rule of Law Index Report released this year by the World Justice Project indicates that corruption is still rife among the nation’s judiciary and law enforcers. The report also shows that civil justice is not effectively enforced in the archipelago.
Hikmahanto Juwana, a law professor from the University of Indonesia, told the Jakarta Globe that although inadequate law enforcement has long been a serious problem, reform has proved elusive.

In this respect, it is especially important that the next elected president is one who is committed to not only improve the nation’s legal system but also clean it from corruption.
“Back in [former president] Suharto’s time, the law was just an ornament,” Hikmahanto said.
The 32 years of Suharto’s authoritarian rule have left a deep mark on the nation’s legal system.
Hikmahanto pointed out that little had changed even after Suharto’s New Order era came to an end with the brief presidency of B. J. Habibie in 1998-99.
“Since Habibie’s term, each president had always wanted to improve law enforcement here. But always to little avail. Nothing changed.”

The WJP’s effective enforcement index measures the effectiveness and timeliness of the enforcement of civil justice decisions and judgments in practice.
Indonesia received a score of 0.29 on the effective enforcement index, below nations such as Serbia, which scored 0.31. By contrast, Singapore, one of Indonesia’s nearest neighbors, scored 0.85.

 

Corruption

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WorldBank/IMF in Indonesia

Corruption in the legal system
On top of problematic law enforcement, corruption is also prevalent in the nation’s legal system, according to the report.
The WJP reported that Indonesia ranked 80 out of 99 countries in terms of freedom from corruption in the country’s legal system.
“Problems related with bribery are everywhere, whether it be with judges, prosecutors, or lawyers. This is a real problem,” Hikmahanto said.

On the judiciary corruption index, Indonesia scored 0.34, lower than Ethiopia, which scored 0.35. Singapore scored 0.84.
The WJP’s judiciary corruption index measures whether judges and judicial officials refrain from soliciting and accepting bribes. It also measures whether the judiciary and judicial rulings are free of improper influence from government, private interests and criminal organizations.
Subsequently, with respect to the level of corruption in the police or the military, Indonesia scored 0.37, alongside Afghanistan, which received the same rating.

The WJP’s police/military corruption index measures whether police officers and criminal investigators refrain from soliciting and accepting bribes to perform basic police services such as investigating crimes. It also measures whether government officials in the police and the military are free from improper influence by private interests or criminal organizations.

Serious consequences
Serious social and economic consequences await Indonesia should it fail to improve the rule of law. Without the rule of law, public order is difficult to maintain. Consequently, without order, a nation can hardly progress at all. Additionally, the extent to which rule of law is upheld in a country is often a yardstick that businessmen and investors use when considering where to operate.
“It causes dismay to investors, people who want to do business,” Hikmahanto said. “Were it not for that, Indonesia, I believe, would have been five times as developed.”

Besides economic impacts, the failure of the rule of law is felt in enforcement of Indonesia’s environmental and human rights legal framework.

The World Justice Project is an independent, non-profit organization based in the United States.
Among its honorary chairs are a former US secretary of state, Madeleine Albright, former US president Jimmy Carter, and South African activist Desmond Tutu.
The WJP claimed that the Rule of Law Index Report 2014 captured the experiences and perceptions of ordinary citizens as well as in-country professionals. The WJP claims to have identified, on average, more than 300 potential local experts per country. The report’s data was compiled by the WJP with the assistance of an Indonesian polling company, MRI-Marketing Research Indonesia. The poll was conducted by meas of face-to-face interviews, with as many as 1,067 samples collected in 2013.

This article is part of a special coverage on Indonesia’s presidential election.

 

 

 

 


End of the Line for Akil Mochtar as Disgraced Court Chief Jailed for Life

By Jakarta Globe on 10:25 pm Jun 30, 2014

Jakarta. Akil Mochtar’s disgrace was complete late on Monday night after the Jakarta Anti-Corruption Court sentenced the former chief justice of the Constitutional Court to life in prison. Akil was found guilty of having sold off Indonesia’s powerful local government seats to corrupt politicians.
“The defendant has been proved guilty beyond doubt of corruption,” the presiding judge at the court said, reading out the verdict.

Akil was also found guilty of corruption and money laundering during his term as the chief of Constitutional Court between 2010 and 2013. He was arrested at his house in October last year after Corruption Eradication Commission (KPK) investigators arrived with a warrant for his arrest. The commission would later say they had tapped his phone to confirm longstanding suspicions that he was taking bribes to issue favorable verdicts in election disputes.

The Constitutional Court is the highest authority in the country in such disputes. Its decisions are binding and complainants have no further recourse once it has ruled. Lawyer Susi Tur Andayani and businessman Tubagus Chaeri Wardana, better known as Wawan, were also brought in by investigators on graft charges. Wawan was caught red-handed, trying to bribe Akil to rule in favor of candidates loyal to his family in the Lebak district of Banten.

It was not long before the case widened to take in Wawan’s sister, the governor of Banten province, Ratu Atut Chosiyah, a matriarch whose vice-like grip on the province’s finances allegedly extended to rigging just about every public contract for the province — which lies contiguous to both Jakarta and West Java — but did not include working to improve the down-at-heel province’s education system or better the lot of its citizens.

Indonesia’s highly decentralized political framework confers vast budgets and significant powers on provincial and district chiefs.
“The defendant has ruined public trust in the Constitutional Court, and it will take quite some time to revive it,” KPK prosecutor Pulung previously said in court, while Indonesia Corruption Watch said at the time of Akil’s arrest that the case was “a disaster for law enforcement in Indonesia.” ICW went on to accuse Atut of conducting graft on an industrial scale in Banten — again and again awarding tenders to companies owned by her and her family.

Several other cases against Akil have since come to light — including district seats in Central Kalimantan and the mayoralty of Palembang — and the disgraced former judge may face further charges as investigators work their way through a backlog of similar complaints.
Akil — who recently conceded he was “no angel” — was defiant prior to the ruling, insisting he would file an appeal “to heaven” if necessary.

 

 

 

Akil Mochtar divonis seumur hidup
Senin, 30 Juni 2014 22:38 WIB |


Jakarta (ANTARA News) - Mantan Ketua Mahkamah Konstitusi Akil Mochtar divonis seumur hidup dalam perkara dugaan tindak pidana korupsi penerimaan hadiah terkait pengurusan 10 sengketa pemilihan kepala daerah (pilkada) di MK dan tindak pidana pencucian uang.
"Menjatuhkan pidana penjara terhadap terdakwa M Akil Mochtar dengan pidana seumur hidup," kata Ketua majelis hakim pengadilan tindak pidana korupsi (Tipikor) Jakarta, Suwidya, Senin.

Pidana tersebut sesuai tuntutan jaksa penuntut umum meski tanpa pemberian denda dan hukuman tambahan dengan karena jaksa meminta agar Akil divonis penjara seumur hidup dan denda Rp10 miliar dan pencabutan hak politik untuk memilih dan dipilih.
"Hal yang memberatkan terdakwa adalah ketua lembaga tinggi negara yang merupakan benteng terakhir pencari keadilan sehingga harus memberikan contoh terbaik dalam integritas, kedua perbuatan terdakwa menyebabkan runtuhnya wibawa MK Republik Indonesia, ketiga diperlukan usaha yang sulit dan lama untuk mengembalikan kepercayaan kepada lembanga MK," ungkap Suwidya.

Hakim juga tidak melihat ada hal yang meringankan dari perbuatan Akil.
"Terdakwa dituntut dengan ancaman maksimal maka hal yang meringankan tidak dapat dipertimbangkan lagi," tambah Suwidya.

Dalam pertimbangnya, majelis memang melihat bahwa perbuatan Akil harus dihukum berat.
"Setelah majelis bermusyararah, majelis sependeapat dengan dakwaan tuntutan penuntut umum mengingat perbuatan terdakwa yang berat khususnya terkait penyelenggaraan pilkada di daerah sehingga denda tidak relvan lagi karena terdakwa dituntut pidana maksimal sehingga pidana itu tidak dapat diganti lagi bila terdakwa tidak bisa membayar tuntutan denda itu," ungkap Suwidya.

Akil dituntut berdasarkan enam dakwaan yaitu pertama adalah pasal 12 huruf c Undang-undang No 31 tahun 1999 sebagaimana diubah UU No 20 tahun 2001 tentang Tindak Pidana Korupsi jo pasal 55 ayat 1 ke-1 KUHP jo pasal 65 ayat 1 KUHP tentang hakim yang menerima hadiah yaitu terkait penerimaan dalam pengurusan sengketa pilkada Gunung Mas, Lebak, Pelembang dan Empat Lawang.

Dalam sengketa pilkada Gunung Mas, Akil dianggap terbukti mendapat Rp3 miliar dari bupati terpilih Gunung Mas Hambit Bintih melalui anggota Komisi II dari fraksi Partai Golkar Chairun Nisa.
Selanjutnya dalam sengketa pilkada Lebak, Akil dinilai mendapatkan Rp1 miliar dari calon bupati Lebak Amir Hamzah melalui pengacara mantan anak buah Akil, Susi Tur Andayani. Uang tersebut berasal dari pengusaha Tubagus Chaeri Wardana alias Wawan yang merupakan adik dari Gubernur Banten Ratu Atut Chosiyah.

Dalam sengketa pilkada kota Palembang, Akil dinilai menerima uang sebesar Rp19,87 melalui Muhtar Ependy yang diberikan calon walikota Palembang Romi Herton melalui rekening CV Ratu Samagat.
Kemudian dalam sengketa pilkada kabupaten Empat Lawang, Akil mendapat Rp15,5 miliar melalui Muhtar Ependy dari bupati petahana Budi Antoni Aljufri.

Dakwaan kedua juga berasal dari pasal 12 huruf c Undang-undang No 31 tahun 1999 sebagaimana diubah UU No 20 tahun 2001 tentang Tindak Pidana Korupsi jo pasal 55 ayat 1 ke-1 KUHP jo pasal 65 ayat 1 KUHP yaitu penerimaan dalam pengurusan sengketa pilkada Lampung Selatan, Buton, Morotai, Tapanuli Tengah.
"Dalam pilkada Lampung Selatan tidak ditemukan penerimaan uang untuk terdakwa sehingga dakwaan tersebut tidak terbukti," kata anggota majelis hakim Sofialdi.

Hakim menilai Akil tidak terbukti menerima Rp500 juta melalui Susi Tur Andayani yang berasal dari pasangan bupati terpilih Rycko Menoza dan Eki Setyanto.
Sedangkan pada sengeketa pilkada kabupaten Buton Akil menerima Rp1 miliar dari pasangan calon bupati Samsu Umar Abdul Samiun dan La Bakry yang diberikan melalui rekening CV Ratu Samagat.

Dalam perkara sengketa pilkada kabupaten Pulau Morotai, Akil menerima Rp2,99 miliar dari calon bupati Rusli Sibua.
Selanjutnya untuk pengurusan sengketa pilkada kabupaten Tapanuli Tengah, Akil menerima Rp1,8 miliar yang diberikan oleh bupati terpilih Tapanuli Tengah Raja Bonaran Situmeang.

Dakwaan ketiga berasal dari pasal 11 UU No 31 tahun 1999 sebagaimana diubah dengan UU No 20 tahun 2001 tentang Pemberantasan Tindak Pidana Koruspi Jo pasal 55 ayat 1 ke-1 KUHP jo pasal 65 ayat 1 KUHP tentang penyelenggara negara yang menerima hadiah atau janji dalam sengketa pilkada Jawa Timur dan kabupaten Merauke, kabupaten Asmat dan kabupaten Boven Digoel.
Akil mendapatkan janji untuk menerima uang Rp10 miliar dari Ketua Dewan Pimpinan Daerah I Golkar Jawa Timur yang juga ketua bidang pemenangan pilkada Zainuddin Amali, namun sebelum janji itu terwujud Akil sudah ditangkap pada 2 Oktober 2013.
Akil juga menerima Rp125 juta dari Wakil Gubernur Papua 2006-2011 Alex Hesegem sebagai imbalan konsultasi mengenai perkara permohonan keberatan pilkada kabupaten Merauke, kabupaten Asmat dan kabupaten Boven Digoel.

Dakwaan keempat juga berasal dari pasal 11 UU No 31 tahun 1999 sebagaimana diubah dengan UU No 20 tahun 2001 tentang Pemberantasan Tindak Pidana Koruspi Jo pasal 55 ayat 1 ke-1 KUHP jo pasal 65 ayat 1 KUHP dalam pengurusan sengketa pilkada Banten.
Akil pun mendapatkan hadiah sejumlah Rp7,5 miliar dari Tubagus Chaeri Wardana dalam sengketa pilkada provinsi Banten yang dikirimkan ke rekening CV Ratu Samagat secara bertahap dengan keterangan "biaya transprotasi dan sewa alat berat serta "pembayaran bibit kelapa sawit".

Dakwaan kelima adalah pasal 3 UU No 8 tahun 2010 tentang Pencegahan dan Pemberantasan Tindak Pidana Pencucian Uang jo pasal 55 ayat 1 ke-1 KUHP jo pasal 65 ayat 1 KUHP mengenai tindak pidana pencucian uang aktif saat menjabat sebagai hakim konstitusi periode 2010-2013.
KPK menduga ada Rp161 miliar yang merupakan harta kekayaan Akil itu merupakan hasil tindak pidana korupsi sejak 22 Oktober 2010 sampai 2 Oktober 2013.
Namun majelis hakim tidak menyetujui semua harta tersebut merupakan tindak pidana pencucian uang.
"Menimbang mengenai pasal 55 ayat 1 ke-1 terdakwa didakwa melakukan tindak pidana pencucian uang secara bersama-sama dengan saksi Muhtar Ependy berkaitan dengan penitipan uang sejumlah Rp35 miliar yang berasal dari pemberian pihak pemohon yang berperkara di MK, terkait sengketa pilkada di kabupaten Empat Lawang dan Palembang, majelis hakim tidak menemukan adanya hubungan kasualitas antara harta kekayaan yang dikelola Muhtar Ependy dengan terdakwa selain Muhtar Ependy mentransfer Rp3,86 miliar ke rekening CV Ratu Samagat," kata anggota majelis hakim Alexander Marwata.

Artinya hakim hanya melihat ada Rp129,86 miliar yang menjadi bagian tindak pidana pencucian uang Akil.
"Tidak ditemukan alat bukti bahwa harta kekayaan yang dikelola Muhtar Ependy adalah harta kekayaan terdakwa yang dititipkan ke Muhtar Ependy. Majelis hakim berpendapat secara yuridis hal itu menjadi tanggung jawab Muhtar Ependy secara pribadi sehingga terdakwa tidak dapat dimintakan tanggung jawab terhadap harta kekayaan yang tidak dikuasainya dengan demikian unsur penyertaan tidak terpenuhi menurut hukum," tambah hakim Alexander.

Dakwaan keenam berasal dari pasal 3 ayat 1 huruf a dan c UU No 15 tahun 2002 tentang Tindak Pidana Pencucian Uang sebagaimana diubah dengan UU No 25 tahun 2003 jo pasal 65 ayat 1 KUHP karena diduga menyamarkan harta kekayaan hingga Rp22,21 miliar saat menjabat sebagai anggota Dewan Perwakilan Rakyat dari fraksi Golkar 1999-2009 dan ketika masih menjadi hakim konstitusi di MK pada periode 2008-2010.

Padahal penghasilan sebagai anggota DPR dan hakim konstitusi periode 17 April 2002 sampai 21 Oktober 2010 dari gaji dan tunjangan hanya sebesar Rp7,08 miliar dengan pengeluaran rutin dari 2002-2010 adalah Rp6,041 miliar.
"Terdapat ketidakwajaran dibanding penghasilan terdakwa yang menyimpang dari profil keuangan terdakwa," kata anggota majelis hakim Matheus Samiadji.

Artinya secara total Akil terbukti melakukan tindak pidana pencucian uang sebesar Rp152,07 miliar.
Namun ada dua orang hakim yang menyatakan perbedaan pendapat (dissenting opinion) yaitu hakim anggota III Sofialdi dan hakim anggota IV Alexander Marwata.
"Tentang pasal 55 ayat 1 ke-1 KUHP tentang penyertaan saksi Chairun Nisa tidak terpenuhi karena Chairun Nisa adalah penerimaan terhadap chairun nisa sendiri sebesar Rp75 juta dari Hambit Bintih bukan terhdap bersama-bersama dengan dengan hakim, dalam posisi ini Chairun Nisa tergolong pihak yang memberi janji sebesar Rp3 miliar atas permintaan Hambit Bintih," kata anggota hakim Sofialdi.

Sofialdi juga keberatan dengan peran Susi Tur Andayani yang dalam putusan perkaranya adalah sebagai pihak pemberi dan bukan bukan kawan peserta dalam pilkada Lebak.
"Disenting opinion kedua adalah penutut umum KPK tidak punya wewenang untuk TPPU sebagaimana dakwaan kelima dan
dakwaan keenam karena KPK sendiri dalam UU ini tidak punya kewenangan terhadap penyelidikan dan penyidikan, sehingga dakwaan tersebut harus batal dengan sendirinya dan tidak bisa dipersalahkan," tambah Sofialdi.
Sedangkan hakim Alexander Marwata berpendapat bahwa tindak pidana asal dalam TPPU perlu dibuktikan lebih dulu dan tidak bisa hanya dugaan.

"Menurut hakim anggota 4 penyidik masih punya utang untuk pelaku tindak pidana untuk menyidik pidana asal. KPK memiliki kewenangan tindak pidana asal yang merupakan tindak pidana korupsi bukan tindak pidana yang diduga berasal dari tindak pidana korupsi, tidak bisa hanya diduga tanpa membuktikan tindak pidana korupsi yang mana jika demikian akan menimbulkan keraguan pada pengadilan tindak pidana korupsi," kata hakim Alexander.

Atas vonis tersebut Akil menyatakan banding.

 

 

 

 

 

Ekspresi Akil Mochtar saat divonis penjara seumur hidup
Akil juga dijatuhi hukuman tambahan
berupa pencabutan hak memilih dan dipilih dalam jabatan publik.

Senin, 30 Juni 2014 22:40:03

 

 

 

 

 

 


JK: Mafia Minyak Halangi Pembangunan Kilang

Sabtu, 21 Juni 2014 | 06:57 WIB

TEMPO.CO, Jakarta -Pertanyaan soal kebutuhan energi dan pembangunan kilang mengemuka dalam Dialog Kamar Dagang dan Industri (KADIN) dengan Calon Presiden dan Calon Wakil Presiden di Jakarta, Jumat, 20 Juni 2014. Calon wakil presiden nomor urut 2, Jusuf Kalla mengatakan rencana pembangunan kilang minyak di Indonesia selama ini terhambat oleh mafia minyak.

"Kilang ini mudah, tapi banyak permainan dari mafia impor minyak sehingga selalu menghalangi," kata lelaki yang akrab dipanggil JK ini dalam dialog di Djakarta Theatre, Jakarta, Jumat malam.

JK menyatakan pembangunan kilang di dalam negeri seharusnya mudah karena lahan sudah tersedia. Dari sisi pembiayaanpun menurut JK seharusnya tak ada masalah karena ada dana untuk membangun kilang. (Baca:Kilang Minyak Pertamina di Dumai Terbakar)

JK mengatakan jika terpilih bersama Joko Widodo dalam pemilihan presiden dan wakil presiden pada 9 Juli 2014, dia akan membangun kilang minyak di Indonesia. "Dalam tahun pertama, kita bikin kilang supaya mafia mati," kata JK. (Baca:Jero Wacik Komentari Mafia di SKK Migas)

BERNADETTE CHRISTINA MUNTHE

 

 


Kaitan Mafia Minyak, Pertamina, & Regim SBY

OPINI | 27 June 2013 |

 


Siapa Mafia Minyak Dan Gas Indonesia
Siapa Mafia Minyak Dan Gas Indonesia
September 7, 2013
Siapa sih sosok mafia minyak dan gas di indonesia

Penangkapan Kepala Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) Rudi Rubiandini oleh Komisi Pemberantasan Korupsi (KPK) mengejutkan banyak pihak. Banyak kolega tak percaya Rudi menerima gratifikasi. Pasalnya selama ini Rudi dikenal sebagai sosok baik dan memiliki idealisme tinggi.
Namanya moncer ketika menyoroti kasus lumpur Lapindo, Sidoarjo. Peraih gelar Dokter Ingenieurs (Dr.-Ing) bidang teknologi minyak dan gas bumi dari Technische Universitaet Clausthal, Jerman ini menentang teori lumpur Lapindo terjadi akibat dampak dari gempa di Yogyakarta. Rudi yakin bencana itu terjadi akibat kesalahan pengeboran.

Rudi bukanlah sosok yang asing dalam industri migas. Pria kelahiran 1962 ini mengawali kariernya di perguruan tinggi sebagai dosen di jurusan Teknik Perminyakan Institut Teknologi Bandung (ITB) pada 1985. Kemudian ia melanjutkan pendidikan hingga meraih doktor di Jerman pada 1991.

Kecerdasannya sudah terlihat sejak mahasiswa di Teknik Perminyakan ITB. Ia menjadi mahasiswa terbaik ITB 1984, dosen teladan ITB 1998, presenter terbaik Ikatan Ahli Perminyakan Indonesia (IATMI) 2000-2004. Sebagai peneliti, ia menghasilkan lebih dari 50 karya ilmiah nasional dan internasional. Rudi juga ikut membangun laboratorium dan peralatan penelitian di ITB dan Lemigas sehingga mengantarkan dia memperoleh penghargaan dari asosiasi IATMI sebagai Inovator Nasional bidang Migas tahun 2002. Ia dikukuhkan menjadi guru besar ITB pada 2010.
Ia dikenal sebagai konsultan untuk berbagai proyek pengembangan lapangan KKKS, menjadi trainer berbagai kursus teknis bagi karyawan di lapangan, menciptakan beberapa buku bidang migas. Rudi juga kerap memimpin beberapa kali mematikan semburan pada beberapa sumur migas yang sedang blowout.

SKK Migas seperti rumah kedua Rudi Rubiandini. Sebelum menjadi Kepala SKK Migas, sebelumnya Rudi pernah menjadi pejabat di institusi yang dulunya bernama BP Migas. Rudi pernah menjadi Corporate Secretary dan Deputi Pengendalian Operasi BP Migas. Ia melakukan berbagai pembenahan terutama pembenahan internal institusi itu.

Karier Rudi meningkat pada Juni 2012, ia ditunjuk menjadi Wakil Menteri Energi dan Sumber Daya Mineral (ESDM) menggantikan almarhum Widjajono Partowidagdo. Pasca pembubaran BP Migas oleh Mahkamah Konstitusi, Rudi diangkat sebagai Kepala SKK Migas pada 16 Januari 2013. BP Migas dibubarkan November 2012 dengan alasan tidak sesuai konstitusi. BP Migas dituding sebagai sarang korupsi dan pro asing.

Masuknya Rudi sebagai Kepala SKK Migas memberi banyak harapan. Rudi menentukan sejumlah target seperti kenaikan produksi, meningkatkan cadangan dan meningkatkan kapabilitas nasional. Untuk meningkatkan produksi, SKK Migas menetapkan 2013 sebagai tahun pemboran. Sebanyak 1.500 sumur dibor tahun ini.
Untuk mendukung program tersebut, Rudi telah menyusun 104 program kerja. Rudi bahkan mengancam akan memutus kontrak operator jika tak menjalankan komitmennya.

Gebrakan Rudi setelah enam menjabat sejak awal Januari 2013 mulai membuahkan hasil. Penerimaan negara dari hasil pengelolaan industri hulu migas mencapai US$ 18,7 miliar, melebihi target yang ditetapkan sebesar US$ 18,4 miliar untuk setengah tahun pertama. Sedangkan, produksi minyak pada periode yang sama berhasil mencapai rata-rata 831 ribu barel minyak per hari atau 99 persen dari target yang ditetapkan sebesar 840 ribu barel per hari.

Terbetik rumor, pasca-pembubaran BP Migas tahun lalu, berbagai rumor mengikuti putusan Mahkamah Konstitusi tersebut. Adalah PT Kernel Oil yang dipegang Widodo Ratanachaitong sudah berbisnis sejak era SKK Migas masih bernama BP Migas dan dipimpin R Prijono. Dan, Menteri ESDM dikabarkan memainkan peranan, sehingga Kernel bisa berbisnis minyak kala itu.
Sampai Menteri Energi dan Sumber Daya Mineral (ESDM), Jero Wacik berpesan kepada Kepala Satuan Kerja Khusus Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas), Rudi Rubiandini agar tidak melupakan mantan Kepala Badan Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (BP Migas), Raden Prijono.
“Saya bilang ke Pak Rudi, you enggak boleh lupa sama Pak Priyono. Jangan seperti kacang lupa sama kulitnya,” ujar Jero dalam sambutannya saat membuka Rapat Kerja (SKK Migas), di City Plaza, Jakarta, Kamis (14/2/2013).

Gebrakan-gebrakan yang dilakukan Rudi Rubiandini di SKK Migas selama kurang lebih enam bulan ini membuat gerah Raden Prijono dan Yohanes Chandra Ekajaya yang telah lama berkongsi mengeruk rente dari monopoli operational kapal/angkutan, rig/pengeboran dan yang paling utama eksport minyak mentah/condensate bagi hasil produksi (Production Sharing Contractor/PSC) bagian pemerintah yang telah lama dikendalikan dan dijalankan oleh Yohanes Chandra Ekajaya dengan modus permainan angkutan/kapal yang telah diatur dengan mangacu pada spesifikasi yang hanya dapat dipenuhi oleh kelompok mereka, Terbersit kabar profit sharing antara Kernel Oil 50% dan Raden Prijono / Yohanes Chandra Ekajaya 50%.

Dengan bantuan kader-kader Raden Prijono yang masih di lingkungan internal SKK Migas, diketahuilah kelemahan Rudi Rubiandini dan dimanfaatkan oleh duet ini. Sempat Badan Eksekutif Mahasiswa (BEM) Republik Indonesia melakukan aksi di depan kantor Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi di Jakarta, Jumat (23/8/2013).

Aksi tersebut menuntut Plt Kepala SKK Migas, Johannes Widjonarko diusut tuntas atas dugaan tindak pidana korupsi yang dilakukannya selama menjabat sebagai Wakil Kepala SKK Migas.
Selain itu, para mahasiswa itu juga meminta Komisi Pemberantasan Korupsi (KPK) untuk mengusut pula dugaan korupsi yang dilakukan oleh Mantan Kepala SKK Migas, Raden Priyono.
Saat ini salah satu kader Raden Prijono , Johannes Widjonarko diangkat menjadi Kepala Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) menggantikan Rudi Rubiandini yang ditangkap Komisi Pemberantasan Korupsi (KPK) terkait kasus suap, setelah sebelumnya sempat disingkirkan oleh Rudi Rubiandini .

Jejak duet Yohanes Chandra Ekajaya dan Raden Prijono di BPmigas (sekarang SKK Migas) sudah tercium sekitar tahun 2011 dalam Kasus Blok West Madura Offshore melalui PT Sinergindo Citra Harapan yang beralamat di The City Tower Lt 21 / 27, Jakarta

Korupsi pada perpanjangan kontrak migas dapat terjadi karena tidak adanya rujukan peraturan dan tarif (disenagaja?). Padahal secara global tarif akuisisi cadangan migas terbukti berkisar 10-20% harga pasar migas. Dalam kasus perpanjangan kontrak blok West Madura Offshore misalnya, negara hanya memperoleh US$ 5 juta sebagai signatory bomus dari Kodeco (Korea) untuk saham 20%. Padahal jika tarif akuisisi diterapkan, minimal negara bisa memperoleh US$ 300 juta! Siapa yang menikmati selisih pembayaran tsb?

Sebelum terjadi kasus suap Kepala SKK Migas Rudi Rubiandini pada Selasa malam, 13 Agustus 2013, terkait kasus dugaan suap senilai US$ 700 ribu dan Sin$ 127 ribu, tidak banyak yang mengenal Kernel Oil. Ada yang menyebutkan bahwa PT Kernel Oil memiliki hubungan dengan perusahaan minyak PT Indika Energy yang telah berkecimpung selama lebih dari 30 tahun di bidang konstruksi gas dan minyak.

Kernel Oil merupakan perusahaan jual-beli (trader) minyak mentah dan produk-produk turunannya, termasuk produk petrokimia. Berkantor pusat di Singapura, Kernel Oil memiliki cabang di berbagai negara, seperti di Indonesia, Thailand, Australia, Swiss hingga Dubai.
Kernel Oil pernah memperoleh jatah di terminal minyak mentah dan kondensat Senipah, Delta Mahakam, Kalimantan Timur, dan terminal minyak mentah sumur minyak Minas, Jambi dari Satuan Kerja Khusus Pelaksana Kegiatan Hulu Minyak dan Gas Bumi (SKK Migas)

Seperti diketahui Kernel Oil juga pernah menjadi Kontraktor Bagi Hasil Produksi (Production Sharing Contractor/PSC) pada BP Migas (sekarang SKK Migas) pada masa kepemimpinan R. Prijono

Kernel Oil kerap ikut dalam tender bulanan pengadaan Premium yang dilakukan oleh anak usaha PT Pertamina (Persero), Pertamina Energy Trading Limited (Petral).
Petral mensyaratkan secara ketat perusahaan yang akan menjadi peserta tender dan rekanan dalam pengadaan impor minyak mentah dan BBM. Persyaratan sebagai peserta tender antara lain perusahaan tercatat di bursa saham global atau perusahaan negara. Lalu, perusahaan yang memiliki ekuitas minimum 50 juta dolar dan diaudit Ernst and Young (EY), PricewaterhouseCoopers (PwC), KPMG, atau Deloitte. Petral juga mensyaratkan perusahaan tersebut memiliki kilang, penyimpanan, pencampuran (blending), perkapalan atau mempunyai sewa fasilitas minimum satu tahun.

Selama ini Petral membeli minyak mentah dari Nigeria, Asia, Australia dan juga negara-negara eks Rusia. Hampir semua pengadaan minyak mentah tersebut pada prinsipnya dilakukan dengan cara tender terbuka yang diikuti oleh 53 perusahaan yang terdaftar sebagai rekanan Petral.

Namun, khusus untuk pengadaan beberapa minyak mentah yang tidak dijual bebas atau terbatas, Petral membelinya secara langsung kepada perusahaan nasional produsen maupun pihak yang ditunjuk oleh produsen untuk memasarkan minyak mentah tersebut. Sebagai contoh, Petral pernah melakukan penunjukan langsung pengadaan Arab Light dari Aramco yang tidak diperjualbelikan secara bebas, dan Azeri dari PTT Thailand, yang mempunyai penyimpanan minyak mentah Azeri yang terbesar di luar Azerbaijan.

Sementara, untuk tender impor BBM jenis Premium sebanyak delapan juta barel per bulan diikuti 28 perusahaan. Pemasoknya seperti Arcadia, Total, Glencore, Vitol, Concord, Verita, Gunvor, PPT, Kernel Oil, BP, Unipec, Petrochina, Petronas, Shell, Trafigura, SK, dan Conoco. Petral melakukan pembelian Premium secara tender, karena produsennya adalah trader yang melakukan proses blending di Singapura.

Sedangkan untuk tender solar secara spot melibatkan 30 perusahaan terdaftar. Sementara pengadaan secara berjangka melalui penunjukan empat perusahaan minyak nasional yaitu Kuwait Petroleum Company, Petronas Malaysia, PTT Thailand dan S-Oil yang dimiliki oleh Saudi Aramco. Keempatnya, menurut Petral, mempunyai kilang minyak yang memproduksi solar, sehingga mencegah spekulasi harga dan penyelundupan, sekaligus harga lebih murah dari spot.

Kernel Oil sendiri terdaftar sebagai perusahaan trader di SKK Migas. Anehnya, sejak era Prijono hingga Rudi, sangat aktif berbisnis hulu sampai hilir. Itu sebabnya, Kernel potensial jadi Kartel Migas

Menariknya guna memperlancar operational Kernel Oil di Indonesia untuk berbisnis minyak mentah, Kernel Oil berdampingan dengan PT Surya Parna Raya (SPN) dengan fasilitator Effendi MS Simbolon, Politisi Partai Demokrasi Indonesia Perjuangan (PDI-P), Wakil Ketua Komisi VII DPR RI yang selama ini dikenal vokal menyoroti kebobrokan tata kelola Migas itu diduga memanfaatkan pengaruhnya untuk menekan BP Migas agar menjual gas Hussky ke PT Parna Raya dengan harga lebih murah dibandingkan dengan harga jual ke perusahaan lainnya.

Tahun 2012 dan 2013 PT Surya Parna Niaga (Grup Parna Raya) berhasil mengalahkan ratusan perusahaan sejenis untuk dapat penunjukan BPH Migas.

Dengan pengaruhnya, Effendi Simbolon disebut melakukan penekanan politik dengan mengatasnamakan partai politik tertentu. Sebagai hasil negosiasi ulang, BP Migas mengusulkan kepada Menteri ESDM melalui Ditjen Migas harga yang berbeda. Untuk PT PGN seharga USD 5,8/MMBTU, untuk PT Inti Alasindo seharga USD 5,8/MMBTU, sedangkan khusus untuk PT Parna Raya lebih murah yaitu seharga USD 5,2/MMBTU.

Pada perjalanannya usulan itu disetujui oleh Menteri ESDM dalam SK MESDM tentang Harga Jual Gas Hussky kepada ketiga perusahaan tersebut. Selisih USD 0,60/MMBTU dengan volume penjualan 40 MMBTU untuk PT Parna Karya menyebabkan potensi kerugian negara sebesar USD 8,64 Juta per tahun untuk proyeksi kontrak selama 15 tahun, sehingga totalnya mencapai Rp 1,5 triliun.

 

 

 

 

 

 


Indonesian Religion Minister Resigns Amid Graft Probe

May 27, 2014
By I MADE SENTANA

JAKARTA, Indonesia–Indonesia’s religious affairs minister and head of a party backing presidential candidate Prabowo Subianto has resigned from his post after being named a suspect in a corruption case involving funds tied to the Muslim pilgrimage.
“This is a difficult problem for me and my family that I have to focus on solving,” Suryadharma Ali told reporters after telling President Susilo Bambang Yudhoyono he was giving up his position. “For that reason, I returned the mandate the President bestowed upon me (as the minister of Religious Affairs).”

Last Thursday the Anti-Corruption Committee named Mr. Ali a suspect in its investigation into the alleged embezzlement of funds dedicated to the haj pilgrimage.
Mr. Ali says he is innocent. “I pray that the decision to name me a suspect is a mere misunderstanding,” he said Thursday.
Meanwhile, analysts say the naming of Mr. Ali as a suspect in the case could have a ripple effect on Mr. Subianto.
Mr. Ali was an ardent supporter of the presidential hopeful, and the party Mr. Ali heads, the Islamic-based United Development Party (PKS), is part of a six-party coalition that nominated the ex-lieutenant general for July’s presidential contest.
“This is bad news” for Mr. Subianto and the parties in the coalition, said Bawono Kumoro, a political analyst with the Habibie Center. “Corruption is the center of public attention currently.”

The anti-corruption commission has named a number of high-profile politicians as suspected in recent corruption cases, and analysts have blamed the series of corruption scandals tied to Mr. Yudhono’s Democrat party for causing its poor performance in last month’s legislative election.
Mr. Subianto has been seen frequently in public with Mr. Ali and had previously complimented his work as a minister.
“Personally, I don’t believe Mr. Suryadharma Ali is guilty,” Mr. Subianto said last week.

Managing the Haj pilgrimage is a big part of the religion ministry’s duties in Indonesia, where the majority of the 247 million people are Muslim. In the past, pilgrims have complained of problems such as substandard catering and accommodation.
Mr. Kumoro said the case will provide ammunition for the Indonesian Democratic Party of Struggle and Joko Widodo, the candidate running against Mr. Subianto.

 

 

Suryadharma Accusation Opens Debate on KPK
By Josua Gantan on 10:12 pm May 23, 2014

Jakarta. The naming of Suryadharma Ali by the Corruption Eradication Commission on Thursday as a suspect in a case involving misuse of Hajj funds, has jeopardized the presidential bid of Prabowo Subianto who counts Suryadharma and his party, the United Development Party, as one of his closest coalition partners.

The incident has also led some to question the political neutrality of the Corruption Eradication Commission (KPK).
Abraham Samad, the KPK chief, was previously considered for a vice presidential run along with Joko Widodo, Prabowo’s arch rival in the upcoming election.
While that pairing did not materialize, Abraham’s recent attempts to enter the political realm has resulted in the institution being vulnerable to accusations of harboring political interests, thereby undermining its independence in the public eye.

Arbi Sanit, a political observer from the University of Indonesia, said the naming of Suryadharma Ali as a suspect will adversely affect public trust in him, the party he leads and ultimately, Prabowo, who is closely associated with Suryadharma.
“This will have a domino effect, public trust in the party will be hit.”


Arbi said the newly formed coalition — which Suryadharma and his United Development Party (PPP) are a part of — will also be affected, though at a different level.
“Should the PPP lose its electability, the effect will be felt by the coalition. Only, we cannot know for sure, yet, just how bad the effect will be regarding the Prabowo-Hatta [Rajasa] candidacy.”

Meanwhile, Prabowo has publicly defended Suryadharma over the corruption allegations.
Prabowo said on Friday that he was confident the PPP chairman did not misuse the hajj funds. He also said the incident would not affect his presidential campaign.
“He is the most successful religious … minister to have managed the hajj,” Prabowo said.

Observers now believe Prabowo is facing a dilemma. Should he appear supportive of Suryadharma, his public image is likely to decline.
On the other hand, if he distances himself from Suryadharma and his party, his relationship with the political elite could be jeopardized. Should that happen, the newly formed coalition and the support base he needs for the presidential election, might be badly damaged.

The corruption case Suryadharma is entangled in is a particularly sensitive one for Muslim-majority Indonesia.
It directly affects Indonesians’ ability to go on a pilgrimage, one of the five pillars of the Islamic faith.

Prabowo may be taking a bold step by defending Suryadharma publicly.
“This [corruption case] is very sensitive. People saved up money for years in order to fulfill their religious duty and now they see that Suryadharma Ali is misusing the money,” Arbi said.
“What does Prabowo do about it? If he keeps being protective of [Suryadharma], he will be negatively affected.”

Political neutrality and KPK
Abraham’s political association with Joko Widodo, a presidential candidate with the Indonesian Democratic Party of Struggle (PDI-P), only adds weight to suspicions over the KPK’s motives when it moved against Suryadharma.
“I am deeply disappointed that the KPK’s ethics council did not deal with Abraham over the matter,” Frans Winarta, a legal expert and the chairman of the Indonesian Bar Association told the Jakarta Globe on Friday.
“It should never be the case that anybody from the KPK enters politics. They have to be independent,” he said.
“It is an open secret that there might be political motives behind law enforcement in this nation.
That has given rise to suspicions over [the role of] politics in law enforcement.”

On the other hand, some contend that the KPK has no political interest in the matter.
Arbi said that the KPK’s timing in naming Surya as a corruption suspect should not be questioned as the anti-graft institution had only managed to collect adequate evidence shortly before.
He argues that those questioning the anti-corruption agency’s integrity were most likely to have a vested interest of their own in either Prabowo or Suryadharma.
“He has been made a suspect. The KPK has found evidence. There is nothing amiss.”

 

 

 

 

 

 


KPK will not use Wikileaks reports in Hadi case
Tue, May 06 2014,

The Corruption Eradication Commission (KPK) says that it will not use leaked US diplomatic reports published on Wikileaks
in its investigation into graft case involving former Supreme Audit Agency (BPK) chairman Hadi Poernomo.
The reports revealed Hadi’s alleged shenanigans during his time as taxation director general in the Finance Ministry under
Sri Mulyani Indrawati.
“The KPK will not use any information from Wikileaks […] because it has nothing to do with the Bank Central Asia [BCA]
tax case,” KPK spokesman Johan Budi said on Tuesday, as reported by tribunnews.com.

The KPK has named Hadi a suspect for his alleged role in discriminatively approving a request by BCA, now the nation’s
third biggest lender, for tax leniency during his tenure as taxation director general between 2002 and 2004.
“The case is being investigated based on reports from the public,” said Johan of the KPK, adding that the antigraft body
had found evidence materials it deemed valid.

US diplomatic cable number 06JAKARTA5420_a, which was released in 2011 on wikileaks.org, assessed the work and
track record of former and new officials at the Finance Ministry after Sri Mulyani replaced a number of echelon 1 officials, including Hadi.

(fss/ebf)

 

 

 

WikiLeaks: "Drama" Hadi Poernomo, Bermula dari Niat SBY...

Senin, 5 Mei 2014

JAKARTA, KOMPAS.com -- Pada hari terakhir menjabat sebagai Ketua Badan Pemeriksa Keuangan (BPK), yang juga adalah hari ulang tahunnya, Senin (21/4/2014), Hadi Poernomo mendapat "kado" penetapan dirinya sebagai tersangka oleh Komisi Pemberantasan Korupsi (KPK). Berikut ini cerita di balik layar dari kisah lawas yang melatari penetapan status hukum Hadi ini.

Kasus yang menjerat Hadi merupakan kejadian lawas, terkait keberatan pajak yang diajukan PT Bank Central Asia, saat dia menjabat sebagai Dirjen Pajak di Kementerian Keuangan. Merujuk dokumen yang dibocorkan WikiLeaks, kado kepada Hadi ini ternyata bermula dari niat Presiden Susilo Bambang Yudhoyono mereformasi birokrasi.

Namun, ada sosok Menteri Keuangan, saat itu dijabat Sri Mulyani Indrawati, yang mengambil porsi besar dalam rentetan "bersih-bersih" birokrasi tersebut. Dokumen yang dibocorkan WikiLeaks kali ini dklaim sebagai kawat yang dikirim dari Jakarta ke seantero belahan bumi, tertanggal 29 April 2006.

Ringkasan dokumen ini bertutur bahwa pada 21 April 2006, Presiden SBY mengganti para pejabat yang sudah bertahun-tahun "bertakhta" di Direktorat Jenderal Pajak serta Bea dan Cukai di Kementerian Keuangan. Tak disebutkan bahwa Sri Mulyani merupakan "eksekutor" dari keinginan Presiden. Meski demikian, rentetan dari setiap rangkaian peristiwa dipaparkan di dalam dokumen itu dengan Sri Mulyani sebagai "bintang"-nya.

Dokumen bocoran WikiLeaks menyebut pergantian Dirjen Pajak serta Dirjen Bea dan Cukai pada 2006 itu merupakan bentuk dukungan luar biasa besar Presiden terhadap Sri Mulyani. Tujuan perombakan dinyatakan sebagai wujud penegakan reformasi birokrasi, sekaligus memangkas praktik korupsi, menghapus kendala dari sektor pajak dan bea cukai atas arus investasi, serta merespons keluhan para investor.
Berdasarkan kawat yang berisi 14 poin tersebut, para investor dikabarkan menyambut gembira Keputusan Presiden Nomor 45/M/2006 tanggal 20 April 2006 itu. Apalagi, sosok pengganti kedua pejabat "senior" yang digusur itu pun sosok yang relatif tidak terkenal dan karenanya dianggap akan bisa diarahkan lebih baik oleh Menteri Keuangan.

Dari dua pejabat yang diganti, tentu saja Hadi adalah salah satunya, dan saat itu pun tepat pada hari ulang tahunnya. Dia dilengserkan dari jabatan Dirjen Pajak dan digantikan oleh Darmin Nasution, yang sebelumnya adalah Kepala Bapepam-LK.
Adapun Dirjen Bea dan Cukai yang diganti adalah Eddy Abdurrahman. Posisi tersebut kemudian diisi oleh Anwar Suprijadi. Pergantian ini memunculkan pula nama Fuad Rahmany sebagai Kepala Bapepam-LK untuk menggantikan Darmin.

Pergantian ini terjadi hanya tiga hari setelah Sri Mulyani bertemu para donor di pertemuan musim semi tahunan Bank Dunia dan Dana Moneter Internasional (IMF) di Washington, Amerika Serikat. Dalam pertemuan itu, Indonesia dianggap gagal menjalankan pesan reformasi yang menjadi syarat bantuan pada masa lalu. Kegagalan itu digarisbawahi terjadi terutama di administrasi pajak.

Negara-negara donor di kedua lembaga itu pun mendesak Sri Mulyani melakukan perombakan besar-besaran. Menurut mereka, perombakan itu harus dilakukan bila Indonesia memang berniat meyakinkan para pemilik modal dan mendapatkan serangkaian leverage yang lebih besar.

Pada saat pergantian para pejabat, 26 April 2006, Sri Mulyani pun memaparkan soal visinya ke depan untuk mengambil peran ganda dalam penegakan hukum dan pelayanan publik lewat institusi pajak serta bea dan cukai. "Ada kekecewaan dan kekurangpercayaan pada sisi pelayanan publik," sebut dia saat itu.

Lewat sambutannya itu, Sri Mulyani meminta para pejabat baru untuk bekerja bersamanya secara sistematis, efektif, dan cepat. Di dalamnya termasuk soal perumusan kebijakan dan administrasi.
Selain itu, dia pun menegaskan bahwa Ditjen Pajak serta Ditjen Bea dan Cukai harus meningkatkan layanan dengan memodernisasi kantor, memaksimalkan penggunaan teknologi informasi, sekaligus meminimalkan kontak langsung antara petugas, baik di pajak maupun bea dan cukai, dengan masyarakat.

 

 

 

 

Bocoran WikiLeaks, Amerika Sebut Hadi Poernomo Arogan dan Korup
Minggu, 4 Mei 2014 | 21:42 WIB

JAKARTA, KOMPAS.com -- Mantan Ketua Badan Pemeriksa Keuangan (BPK) Hadi Poernomo rupanya termasuk tokoh yang mendapat perhatian intelijen Amerika Serikat sejak lama. Ia disebut sebagai pejabat korup yang harus dijatuhkan. Setidaknya, itulah informasi kawat rahasia yang diungkap Wikileaks.org.

Pemerintah AS menyebut Hadi Poernomo sebagai tokoh terkorup dari para koruptor pajak. Sementara di kalangan pebisnis berskala internasional, ia dianggap sebagai birokrat kotor.
Predikat tersebut melekat pada diri Hadi sejak menjadi Direktur Jenderal Pajak Kementerian Keuangan RI.
Karena praktik kotornya itulah, Badan Intelijen Pusat Amerika Serikat (Central Intelligence Agency/CIA) menggelar operasi untuk menjatuhkan Hadi Poernomo dari jabatannya sebagai Dirjen Pajak pada tahun 2006 silam.

Kronologi upaya menjatuhkan hadi Poernomo terungkap dalam kawat diplomatik rahasia berkode JAKARTA 00005420 001.2 OF 004 di situs web Wikileaks.org.
Dalam kawat rahasia itu, Amerika Serikat menggambarkan Hadi sebagai sosok angkuh nan arogan. Pemerintah AS kesal terhadap tindakan Hadi yang mencekal wajib pajak yang tengah diperiksa.

Hadi, masih menurut surat rahasia tersebut, merupakan orang yang menjadi "teladan" anak buahnya dalam praktik suap-menyuap perkara pajak di instansinya. Bahkan, berdasarkan laporan agen CIA, Hadi tidak segan-segan memonitor harta wajib pajak menggunakan foto satelit untuk memuluskan praktik kotornya tersebut.
"Di bawah kepemimpinan Hadi, kedisiplinan petugas pajak menipis. Surat ketetapan pajak menjadi norma untuk memaksa perusahaan bernegosiasi (suap)," lapor agen CIA dalam dokumen yang dibocorkan WikiLeaks tersebut.

Laporan intelijen itu juga mengutip ungkapan rasa gembira dari para pebisnis setelah Hadi Poernomo berhasil dilengserkan dari kursi Dirjen Pajak Kemenkeu RI.
"Orang terkorup dari para koruptor di Dirjen Pajak akhirnya bisa dijatuhkan. 'Pria yang tidak terkalahkan' itu akhirnya dapat digulingkan. Ini adalah peristiwa menakjubkan."

Bahkan, komentar dalam dokumen tersebut mengungkapkan rasa gembira intelijen atas kejatuhan Hadi Poernomo. Mereka menulis, "The Mighty Have Fallen" alias si kuat telah jatuh.

 

 


Sri Mulyani Lengserkan Hadi Poernomo Usai Didesak Bank Dunia dan IMF

Minggu, 4 Mei 2014 19:40 WIB

Laporan Wartawan Tribunnews.com Reza Gunadha

TRIBUNNEWS.COM, JAKARTA -

Tersangka kasus suap pajak Bank Central Asia, Hadi Poernomo, ternyata pernah menjadi orang kuat saat menjadi pejabat di lingkungan Kementerian Keuangan RI.
Hadi, menjadi Direktur Jenderal Pajak Kemenkeu RI yang korup tapi tetap dipertahankan selama era Presiden Megawati Soekarnoputri dan Susilo Bambang Yudhoyono. Ia juga tetap bertahan meski menteri keuangan sudah empat kali diganti.

Namun, keperkasaannya tersebut tak berdaya setelah SBY menunjuk Sri Mulyani sebagai Menteri Keuangan.
Hanya dalam jangka waktu lima bulan sejak dilantik, Sri Mulyani sukses melengserkan Hadi Poernomo sebagai dirjen pajak.
Ternyata, keberhasilan Sri Mulyani menggulingkan dirjen korup tersebut bukan lantaran ada programnya pribadi untuk mereformasi institusi perpajakan.

Menurut laporan dalam kawat diplomatik rahasia Amerika Serikat berkode JAKARTA 00005420 001.2 OF 004, seperti yang dilansir dari laman wikileaks.org, Minggu (4/5/2014), Sri Mulyani didesak melengserkan Hadi Poernomo yang dinilai merugikan pebisnis AS.
"Ketika Sri Mulyani mengunjungi Washington DC untuk bertemu World Bank (Bank Dunia) dan International Monetary Fund (IMF), komunitas lembaga donor mendesaknya untuk 'membuat gebrakan' yakni memecat Poernomo," terang dokumen tersebut.

Sehari setelah Sri Mulyani kembali ke Indonesia, yakni 26 April 2006, ia langsung melantik Darmin Nasution sebagai pengganti Hadi Poernomo.
Masih menurut laporan intelijen AS tersebut, Darmin Nasution dinilai bukan sosok ideal sebagai pengganti Hadi Poernomo dan juga untuk melindungi perusahaan-perusahaan AS di Indonesia semisal Freeport.
Namun, laporan itu menyebutkan seorang insurance executive di barat mengatakan, sosok Darmin bisa melakukan apa
saja untuk menyelesaikan persoalan.
Contohnya, Darmin berani "membayar" Komisi XI DPR Ri senilai 100 ribu Dolar AS pada tahun 2004, demi memuluskan amandemen undang-undang kepailitan.

Hingga berita ini dimuat, belum diperoleh konfirmasi dari mantan Dirjen Pajak Kementeriaun Keuangan Hadi Poernomo,
dan mantan Menteri Keuangan Sri Mulyani. (*)

 

 

TAX, CUSTOMS CHIEFS REPLACED IN REFORM EFFORT


B. JAKARTA 4964 JAKARTA 00005420 001.2 OF 004 Classified
By: Economic Counselor William A. Heidt, Reasons 1.4 b,d.

1. (C) Summary. President Susilo Bambang Yudhoyono (SBY) replaced the long-serving, corrupt, and powerful Directors General of Taxation and Customs on April 21. The decision shows SBY's strong support for Finance Minister Sri Mulyani Indrawati's efforts to reform the Ministry of Finance (MOF) bureaucracy to reduce corruption, enhance effectiveness, remove obstacles to pending tax and investment reform legislation, and respond to investor complaints. The incoming Director General (DG) for Tax while no champion of reform, appears close to Mulyani and should help bring the historically independent Directorate General of Taxation (DGT) under more effective MOF supervision. The new DG for Customs remains a relative unknown. All in all, the changes cheered the business community. Paragraphs 12-14 include bio data. End Summary. Tax, Customs Chiefs Replaced ----------------------------

2. (SBU) Just three days after Minister of Finance Sri Mulyani Indrawati told donors of the appointment of two prominent Indonesians to help steer its tax and customs reform efforts (Ref B), the MOF announced a major reshuffle of its Directors General. The changes came via Presidential Decree No. 45/M/2006 of April 20, 2006, and include, --Darmin Nasution, previously Director General for Financial Insitutions, replaced the notorious Hadi Purnomo as Director General for Taxation. -- Anwar Suprijadi, previously Chairman of the State Administrative Agency, replaced Eddy Abdurachman as Director General for Customs and Excise. --Dr. Fuad Rachmany, previously Deputy of the Department of Finance and Funding at the Reconstruction and Rehabilitation Agency for Aceh and Nias (BRR), replaced Nasution as Director General for Financial Institutions.

3. (C) The April 21 announcement came during Minister Mulyani's visit to Washington D.C. for the annual spring meetings of the World Bank and International Monetary Fund (IMF). Due to GOI failure to implement recommendations from past donor assistance programs, especially in tax administration, the donor community had urged her to "make a big gesture" (i.e. fire Purnomo) that would reassure capitals and leverage greater support. 4. (SBU) Mulyani swore in the new DGs April 26, the day after her return to Jakarta. Anggito Abimanyu, the Acting Head of the policy planning arm of the MOF (BAPEKI) and a trusted advisor to Minister Mulyani told us April 27 that replacing the three DGs comprised "the first step." In her speech, Mulyani thanked the outgoing DGs for their service, and outlined her vision of the dual roles of enforcement and public service in Tax and Customs. "There has been disappointment and a lack of trust on the public service side," she noted. The new DGs should help her implement systematically, effectively and quickly the following, -- Separate policy formulation from administration. -- Improve and modernize tax and customs offices to improve customer service. -- Maximize the use of information technology to minimize contact between tax and customs officials and the public.
Outgoing DGs: Good Riddance ---------------------------


JAKARTA 00005420 002.2 OF 004
5. (SBU) The Directorate General for Taxation (DGT), responsible for tax policy, administration and revenue collection, sits in a separate compound from the main MOF complex and has an independent, often arrogant mindset.
Outgoing DG Hadi Purnomo, while smart and capable in many respects, had a poor reputation in the business community; corruption in tax administration became one of the top business complaints. Purnomo proved notorious for strong arm tactics such as imposing travel bans on managers of companies under audit or showing wealthy individuals involved in tax cases that he had satellite photos of their property overseas. During his watch, discipline among DGT officers eroded noticeably, and inflated tax assessments became the norm, forcing businesses to negotiate (i.e., pay bribes) to obtain a more reasonable decision.

6. (C) In office since 2002, former DG for Customs Eddy Abdurachman, while not as notorious as Purnomo, allowed corruption and poor service in the DG of Customs and Excise (DGCE) to increase and become a major business complaint. Exporters and importers alike note that Customs officials routinely shake them down through a variety of ploys: arbitrary check prices, expedition fees, delays in processing, or outright demands for bribes. Companies that import or export time sensitive products (i.e., fresh and frozen foods, seasonal garments, etc.) or high value goods, remain the most vulnerable. The Indonesian media often has blamed customs officials for facilitating large quantities of smuggled goods that enter and exit Indonesia unchecked.
New DGs: Not Perfect, But an Improvement ----------------------------------------

7. (C) The newly named DG for Taxation, Darmin Nasution, seems as much of an insider as Purnomo or Abdurachman, having served since January 2000 as DG for Financial Institutions, the MOF division that supervises pension and mutual funds, insurance companies, and publicly listed companies. Nasution, although smart and tenacious, comes across as slow and deliberative and not particularly business-friendly. Despite six years in office, he has no reform record -- the MOF's regulation of the sectors under his control, as well as restructuring efforts in them, have lagged noticeably compared to the more dynamic banking sector. U.S. insurance companies have described weak regulation and corruption among MOF insurance inspectors under Nasution as major factors behind the slow growth of the sector. Nasution, however, knows how to get things done: a western insurance executive told us Nasution personally solicited insurance companies (including his own) and delivered to the DPR Commission XI a USD 100,000 payment in 2004 to ensure passage of amendments to the bankruptcy law that would protect insurance companies from fraudulent bankruptcy suits.
Despite his flaws, Nasution has the important advantage of enjoying a close relationship with Mulyani--he preceded her as Chairman of the Institute for Economic and Social Research (LPEM) at the University of Indonesia in the early 1990s.

8. (C) Rachmany, Nasution's replacement as Director General for Financial Insitutions, also brings some baggage to his new position; seen as very cautious, and with questionable probity. A U.S. Treasury Advisor who worked under Rachmany at the Directorate of Government Securities Management (DPSUN) in 2001-03 uncovered documentary evidence that Rachmany or one of his close associates rigged bid/ask prices on GOI bond buybacks in 2003, presumably to gain kickbacks from bond sellers. (GOI threw the advisor out of Indonesia for his efforts.) Rachmany has proven helpful to the Embassy in previous roles in the MOF and in the Agency for Rehabilitation and Reconstruction of Aceh and Nias (BRR), although other Aceh donors complain about the BRR's slowness in getting financial systems up and running. Suprijadi, the new DG for Customs, although not well known, apparently, according to an Embassy contact, has the trust of Coordinating Minister for Economic Affairs Boediono. JAKARTA 00005420 003.2 OF 004 Reaction from Business Community --------------------------------

9. (SBU) One long-time expatriate consultant to the MOF described Purnomo as "the most corrupt in a long line of corrupt tax DGs."
After Nasution received his appointment as the new DG, another expatriate consultant noted that "Mr. Untouchable was finally toppled.
Quite amazing." The Chairman of the Indonesian Chamber of Commerce (KADIN) Mr. Hidayat told the press that the new team seems "capable and honest. The changes will support improvement of the investment climate. KADIN will continue to intensify its dialogue with the government." The Chairman of the Indonesian Employers' Association and respected businessman Sofyan Wanandi told the media, "I have new hope there can be trust between the government and businessmen, a change from the past."

10. (C) The Vice President of a major infrastructure firm expressed delight at Abdurachman's replacement. "Imagine for a USD 3 million contract, you had to pay USD 300,000-500,000 to Customs to release your equipment off the docks. Delays were very lengthy and storage fees would pile up. Let's hope things will get cleaned up now." Others, however, remain cautious. Manufacturers and traders at medium-sized Sumatran firms said problems exist in local tax offices and did not expect miracles from changes at the top. The head of a large hardware retailer in Surabaya expressed like sentiments, "Changing the leader is not enough, corruption in DGT is everywhere, but it's a start." Comment: The Mighty Have Fallen -------------------------------

11. (C) Our Indonesian contacts unanimously view the Director General for Taxation as one of the "wettest" positions (i.e. greatest opportunities for graft) in the GOI, and Purnomo used it to maximum personal advantage. He outlasted two Presidents and four finance Ministers, and SBY's failure to replace him through the first 18 months of his administration showed that SBY had failed to gain full control over the bureaucracy. Mulyani's ability to remove Purnomo after just five months in office confirms our impression that among the GOI economic technocrats, she has the strongest relationship with SBY and appears the most willing to take risks. The new Directors General do not come across as great reformers or leaders, but do seem clear upgrades from the old crew, and should help bring the historically independent DGT under firmer MOF control. Bio Data for New MOF Directors General --------------------------------------

12. (U) Dr. Darmin Nasution, born in December 21, 1949 in Tapanuli, North Sumatra, received his Bachelor Degree in Economics from the University of Indonesia in 1976 and serves as a lecturer there. In 1986, Darmin obtained his doctorate in economics from University Paris 1 Pantheon Sorbonne, France. From 1993-95 he served as Assistant to the Coordinating Minister for Industry and Trade and from 1998-2000 Assistant to the Coordinating Minister for the Economy. He became Chairman of the Capital Markets Supervisory Agency (BAPEPAM) in March 2005 while also serving as Acting Director General for Financial Institutions (DGFI, since January 2000), both in the Ministry of Finance. Married, Nasution has two children.

13. (U) Dr. Ahmad Fuad Rahmany (51), an economist who recently served as Deputy of the Department of Finance and Funding at the Agency for the Rehabilitation and Reconstruction of Aceh and Nias (BRR), has experience as an economist, lecturer, researcher, and academician. He obtained his PhD in economics from Vanderbilt University. He teaches at several universities, including the University of Indonesia (UI) and the State Accountancy College (STAN), JAKARTA 00005420 004.2 OF 004 where he has lectured for over 20 years. Rachmany held several senior positions at the Ministry of Finance after joining in 1981. He worked as a researcher in the Economics and Financial Bureau (1997-1998); Chairman of the Debt Management Unit Team (2002); Head of State Obligation Management (2001-2004); and Director of Government Securities Management, a position he still holds. He sits on the advisory board of commissioners of PT Danareksa (a state-owned investment enterprise) and PT Bank International Indonesia (BII). 14. (U) Anwar Suprijadi, born in December 23, 1948 in Semarang, Central Java, received his Bachelor Degree in Economics from Diponegoro University, in Semarang, Central Java in 1972.

In 1983, Suprijadi obtained his Masters degree in transportation from the Bandung Institute of Technology. He worked in various positions in Perusahaan Kerata Api, a national railway company, under the Ministry of Transportation from 1984-1988, becoming its President Director from 1991 to 1995. He moved to the Ministry of Cooperative and Small and Medium Enterprises in 1995 and served as DG for Small Enterprises Supervision. He returned to the Ministry of Transportation in 1998 as Secretary General (a deputy Minister function). He became State Minister for State Administrative Reform under former President Megawati Soekarnoputri in 2001, and Chairman of the State Administrative Agency in 2003. PASCOE

 

 

Menurut Wikileaks Hadi Purnomo lengser karena intrik CIA

Mohammad Atik Fajardin
Senin, 5 Mei 2014 - 11:39 WIB

 

Sindonews.com - Nama eks Ketua Badan Pemeriksa Keuangan (BPK), Hadi Purnomo, ternyata telah lama mendapat sorotan dari intelijen Amerika Serikat (AS). Berdasarkan data yang didapat dari Wikileaks.org, Hadi Purnomo merupakan pejabat Indonesia yang sudah dikenal korup.

Lewat website tersebut, jabatan Direktur Jenderal (Dirjen) Pajak yang pernah diemban Hadi, merupakan jabatan empuk alias basah, untuk mengumpulkan pundi-pundi rupiah.

Ternyata, posisi ini dimanfaatkan Hadi untuk keuntungan pribadinya secara maksimal. Akhirnya, siasat untuk menjatuhkan Hadi mulai disusun oleh Pemerintah AS melalui intelijen, Central Intelligence Agency (CIA).

Kronologi upaya menjatuhkan pria yang berusia genap 67 tahun itu, terungkap dalam kawat diplomatik rahasia berkode JAKARTA 00005420 001.2 OF 004 di website Wikileaks.org, Senin (5/5/2014).

Dalam pesan rahasia itu, AS menilai Hadi sebagai figur yang arogan dan kerap melakukan praktik kotor.
Pemerintah AS, kesal terhadap tindakan Hadi tersebut yang mencekal terhadap wajib pajak yang tengah diperiksa. Kemudian lewat Sri Mulyani Indrawati yang kala itu menjabat Menteri Keuangan (Menkeu), mencopot Hadi Purnomo dari jabatan Dirjen Pajak pada 2006.

 

 

 

 


Extortion by lawmakers exposed
Haeril Halim, The Jakarta Post
February 05 2014, 9:13 AM

A witness in the graft trial of former Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) chairman Rudi Rubiandini has further exposed the endemic corruption involving members of the House of Representatives in the country’s energy sector.

Former SKKMigas deputy for business affairs Gerhard Marteen Rumeser testified at the Jakarta Corruption Court on Tuesday that Rudi once told him that the agency “owed” the House US$1 million and that Rudi had sought his help in obtaining $500,000 to pay the “debt”.
Gerhard said Raden Priyono, who then headed BPMigas, had promised the lawmakers to give them the money. BPMigas was disbanded by the Constitutional Court in November 2012 and later replaced by SKKMigas.
“Pak Rudi asked me to find ways to look for money to pay the ‘debt’ after he had a meeting with a lawmaker who reminded him to pay it. However, Pak Rudi said it did not have to be $1 million, but just $500,000,” Gerhard said.
He added that he did not know who the lawmaker was or whether Rudi was able to collect the money and give it to the House.
He did say, however, that representatives of the House’s budget committee often contacted Rudi and that he was once asked to prepare a “package” for them.

Gerhard’s testimony confirmed allegations that systemic corruption in the energy sector had occurred long before SKKMigas was established to replace BPMigas.
Previously, state-run oil firm PT Pertamina president director Karen Agustiawan claimed she often faced extortion from House members.

In the Corruption Eradication Commission (KPK) case dossier on Rudi, a copy of which was obtained by The Jakarta Post, Karen said several officials, including Rudi and Energy and Mineral Resources Minister Jero Wacik, asked her for money to pay off lawmakers so they would approve the disbursement of the ministry’s state budget allocation.
Karen claimed that Rudi once phoned her to say Jero and he had agreed that SKKMigas would provide $150,000 to help grease the House’s deliberations on the ministry’s budget, while another $150,000 would be provided by Pertamina, according to the dossier.
The money was referred to by Jero — a senior Democratic Party politician — as “holiday bonuses”. The ruling party declined to comment on the allegations.

Two other PD politicians — Sutan Bhatoegana and Tri Yulianto — have also been implicated in Rudi’s case.
Rudi claimed he was pressed by House Commission VII overseeing natural resources to pay out Idul Fitri holiday bonuses in 2013. Rudi said he had given $200,000 to Tri, reportedly on the instruction of Sutan.

In Tuesday’s trial, Gerhard testified that Sutan — given his position as head of the House Commission VII — had instructed Rudi to favor his company, PT Timas Suplindo, in the tender of an offshore construction project held by SKKMigas.
“I received a text message from Pak Rudi that read: ‘From SB [Sutan Bhatoegana]: I heard that the tender is now open. The price that PT Timas offered is lower than [PT] Saipem’s price [another company bidding on the tender], thus, the company that offers the lowest price should be the winner’.”

Gerhard said he named PT Timas the winner of the tender after receiving instruction from Rudi through text message, although he received complaints from Deni Karmaina, a backer of PT Saipem.
Gerhard said that Deni, who is reportedly a close friend of President Susilo Bambang Yudhoyono’s youngest son, Edhie Baskoro, submitted documents to him that revealed the ineligibility of PT Timas to bid on the tender.

Sutan refused to comment on Gerhard’s claims, saying he would let the KPK do its job.

 

 

 

 

KPK Refuses Family Request for Early Visitation,
Denies Political Pressure in Anas Arrest
Jakarta Globe on 4:45 pm January 11, 2014.

 

Anas Detained by KPK Over Hambalang Corruption Case

By Rizky Amelia on 6:44 pm January 10, 2014.

The Corruption Eradication Commission (KPK) detained disgraced Democratic Party chairman Anas Urbaningrum on Friday evening over his alleged involvement in the graft-tainted Hambalang sports center construction project in the latest arrest to rock President Susilo Bambang Yudhoyono’s ruling party.

 

 

 

 

President and Son Accused of Accepting Kickbacks From Hambalang
By Rizky Amelia
November 1, 2013.

Tri Dianto, a supporter of former Democratic Party chairman Anas Urbaningrum, alleged that President Susilo Bambang Yudhoyono and his son Edhie Baskoro Yudhoyono had accepted kickbacks from the Hambalang sports center project and challenged the country’s antigraft body to question them both.

Tri, who was summoned by the Corruption Eradication Commission (KPK) as a witness for Anas, said the KPK needed to summon
Edhie because he was the member of the steering committee during the Democratic Party’s national congress in Bandung, West Java,
in 2010. He added that both the president and his son received kickbacks from other projects.
He added that the president should also be questioned by the KPK in his capacity as the party’s chief advisor.
“SBY too was in charge of the Democratic Party congress in Bandung and he was also part of Andi Mallarangeng’s campaign team,”
he added.

Former Democratic Party treasurer Muhammad Nazaruddin previously disclosed that funds from the Hambalang project went to the
party’s congress to help Anas win the chairmanship.
It was reported that Anas needed between Rp 80 billion and Rp 100 billion ($7 million and $9 million) to win the election.
The KPK widened the scope of its investigation of Anas — who had been named as one of the suspects along with Andi, a former
youth and sports minister, — from the Hambalang project to the Democratic Party’s 2010 congress.
But when asked about the flow of funds in the congress, Tri claimed that he only learned about it from news reports.
“I’ve heard about it. But, I don’t know any further. I am clean. I learned from the media that there was money distributed at the congress,” Tri said.

He also threatened that he would disclose the names of the party’s elites who often asked for projects from Nazaruddin.
“I will explain it later. One thing is certain, they often asked for projects from Nazar,” Tri said.

Nazaruddin, who owned Permai Group, often won government projects and then subcontracted it to other companies.
So far, the KPK has named four suspects: former minister Andi, Anas; former state-owned construction firm director Teuku Bagus Mokhamad Noor; and former youth and sport ministry financial controller Deddy Kusdinar.

Andi has consistently maintained that he played no part in the Hambalang graft scandal.
The KPK has also questioned Anas’ rivals in the party’s chairmanship race, such as Marzuki, Andi and Andi’s brother Zulkarnaen Mallarangeng who acted as Andi’s campaign manager.

KPK investigators have further questioned several Democratic Party officials such as deputy secretary general Saan Mustopa and
the party’s secretarial staff Eva Ompita.
The KPK has also questioned hotel staff where the congress took place and staff at another hotel where some of the participants in
the congress stayed.
The antigraft body named Anas as a suspect for accepting kickbacks in the Hambalang sports center project and other government projects during his term as a lawmaker between 2009 and 2014.

The Hambalang center reportedly cost the state as much as Rp 471.7 billion.
In response to Tri’s call for the KPK to summon President Yudhoyono and his son Edhie, who is also the party’s secretary general, Democratic Party deputy secretary general Andi Nurpati said all legal processes should be left to the KPK.

Andi said the Democratic Party respects the law that implicated her colleagues in the party.
Asked whether she had information about the Hambalang project fund, which allegedly went to the congress, Andi said she had not
joined the party at that time.
“I don’t know because I was still with the General Elections Commission at the time and I don’t know anything related to the congress,” she said.

KPK deputy chairman Busyro Muqoddas previously said it was just a matter of time before the antigraft body would take Anas into custody.
He said he understood why people thought Anas was untouchable because of his status as a suspect who had not yet been detained.
Busyro noted that Anas’ situation was similar to Andi’s.
He reiterated that Anas would eventually be arrested as the investigation was still ongoing.
He also made assurances that the KPK would not be influenced by politics when it eventually arrested Anas.
“We have never been and will never be influenced by external factors, let alone take politics into our consideration,” he said.
“That’s not allowed at all. It will be purely based on legal considerations,” Busyro said.

KPK chairman Abraham Samad previously said he intended to detain Andi soon.

 

 

 

 

Indonesia's anti-graft agency detains former minister

(AFP) – October 17, 2013

Jakarta — Indonesia's anti-corruption agency arrested a former sports and youth minister Thursday in a multimillion-dollar graft case, one of several to rock the president's party ahead of polls next year.

Andi Mallarangeng stepped down from his post in December after being named a suspect by the Corruption Eradication Commission (KPK) in the construction of a sports centre.

The KPK accused Mallarangeng of abusing his authority in handling the project, worth more than one trillion rupiah ($88 million), according to the agency.

In a bright orange vest, Mallarangeng spoke to reporters outside the KPK's headquarters after more than six hours of questioning, confirming he had been officially detained.
"I accept this so my case will be settled more quickly. I hope a fair trial will begin immediately so the truth will be revealed, to show who's guilty and who's not" said Mallarangeng, who has maintained his innocence throughout the scandal.

The detainee became the first minister to resign over graft allegations since the KPK began operations in 2003, with a mandate to crack down on graft with an arsenal of investigative powers.
KPK spokesman Johan Budi confirmed Mallarangeng's arrest, adding the case was still under investigation and that the
KPK "will question witnesses and the suspect (Mallarangeng)".

The graft case is one of several embarrassments to hit President Susilo Bambang Yudhoyono's Democratic Party.
The nation's leader had vowed a cleanup of government on a passionate anti-corruption platform.
Anas Urbaningrum stepped down as Democratic Party chairman in February after being named a suspect in the same case, causing divisions in the party, with loyalists following his exit.
The party's former treasurer Muhammad Nazaruddin was jailed in 2012 for four years and 10 months over a separate sports graft case.

Rampant corruption touches every level of government and public service in Indonesia, with the constitutional court's chief judge, Akil Mochtar, arrested this month for allegedly accepting bribes in election dispute cases.
The country ranks 118th of 176 in Transparency International's annual index, which rates the least to the most corrupt states.

Copyright © 2013 AFP. All rights reserved.

 

 

 

 

Ex Youth and Sports Minister Andi Mallarangeng Arrested
October 17, 2013.

Former Youth and Sport Minister Andi Alfian Mallarangeng was
detained by the Corruption Eradication Commission (KPK) on
Thursday over the Hambalang sports center case.

ndi arrived at the KPK at 10 a.m. and was questioned by antigraft investigators for six hours

Money binge in Hambalang graft case

 

 


A. He was seen leaving the building at 4 p.m. wearing the orange jacket given to those arrested on corruption charges.“Today I start my detention at the KPK,” Andi said outside the antigraft agency’s headquarters. “I accept this as a process to accelerate the investigation of this case. I expect this to be a fair trial at which the truth will be revealed — who’s wrong and who’s right. Thank you.”

Andi was taken straight to a car and driven away by the KPK.
“After questioning [Andi] on Friday last week and today, KPK investigators have concluded that A.M. should be detained,” KPK spokesman Johan Budi said. ““He is being charged with Article 2, Subarticle 1 as well as Article 3 of the 1999 Law No 31 [on Anti-Corruption]. The KPK will continue the investigation by questioning witnesses and suspects in connection with the corruption of the Hambalang project.”

 

 

 

 


 

 

QUOTE


This is my idea,
rather than sentence corruptors to death,
it’s better to combine impoverishing them
and cutting off one of their fingers.


Akil Mochtar, March, 13

 

 

 

 

KPK Confirms Drugs Found at Akil Mochtar’s Office
By Jakarta Globe
October 4, 2013.

Indonesia’s legal reputation was in tatters on Friday after the Corruption Eradication Commission (KPK) confirmed reports that ecstasy and marijuana had been found at the Constitutional Court offices of disgraced chief justice Akil Mochtar.

“The process of searching the Constitutional Court room was witnessed by some officials of the court… During the search, goods were found that we assume to be narcotics or illegal drugs. We don’t know the type,” KPK spokesman Johan Budi said on Friday afternoon.

A source at the KPK speaking on condition of anonymity, however, told the Jakarta Globe that ecstasy and marijuana were found at the Constitutional Court during a search on Thursday night, but declined to comment on exactly where in the offices the drugs were found.

We will update this story as it develops.

 

 

Drugs, Ferraris and Travel Bans: Akil Mochtar Scandal Widens
By Harry Jacques on 9:12 pm October 4, 2013.

The scandal surrounding disgraced Constitutional Court chief justice Akil Mochtar mounted on Friday as the nation’s
antigraft agency seized luxury cars and narcotics, and placed a travel ban on a Provincial governor in a corruption case
that threatened to critically undermine Indonesia’s reputation for electoral integrity.
“This case is a disaster for law enforcement in Indonesia,” Tama S. Langkun at Indonesia Corruption Watch told the
Jakarta Globe. “During this period in the battle against corruption, the Constitutional Court was one of the few institutions
that the public in this country could still rely on…”

Following Akil’s arrest by the Corruption Eradication Commission (KPK) on Wednesday night for allegedly accepting
bribes at his house in South Jakarta, the KPK’s list of suspects stood at six by Friday night,
while Banten Governor Ratu Atut Chosiyah was issued with a travel ban.
“The KPK has issued a travel ban for Ratu Atut Chosiyah. The letter was sent today and is valid for the next six months,” KPK spokesman Johan Budi said on Friday afternoon, adding that the restriction was related to a disputed election in
Lebak regency, Banten.
“We will surely [question Ratu Atut], but we don’t know when,” Johan said.
“A travel ban is issued for investigation purposes.”

The KPK has arrested three suspects in relation to the Lebak district head election case — Akil (who is also a suspect
in a case linked to a local election in Central Kalimantan), lawyer Susi Tur Andayani and Tubagus Chaeri Wardana.
Tubagus is Ratu Atut’s brother and the husband of the South Tangerang mayor, Airin Rachmi Diany.
Tubagus and Susi are suspected of having given Rp 1 billion ($87,000) worth of kickbacks to Akil to persuade the chief justice to issue a favorable ruling in the case.
Tubagus and Susi were seeking a ruling that would have ordered the General Elections Commission (KPU) in Lebak district to scrap the results of the district election held in August and call a revote.

KPK officials found numerous luxury cars parked in Tubagus’s home during a raid on Thursday, including a Bentley, two Ferraris, one Lamborghini, one Nissan GT-R, one Rolls-Royce, a Lexus and a Harley-Davidson Sportster, in addition to a Toyota Camry, a Toyota Innova and two Toyota Land Cruisers, Tribunnews.com reported.
A security officer named Husni said that Tubagus had been living in the area with wife Airin since 2003.
“They owned those luxury cars since they first came here,” Husni said, as quoted by Tribunnews.com. “Pak Wawan [Tubagus] often drives those cars, sometimes alone, sometimes with his wife.”

QUOTE

This is my idea, rather than sentence corruptors to death,
it’s better to combine impoverishing them and cutting off one of their fingers.
Akil Mochtar, March, 13

 

 

 


KPK Charges Constitutional Court Chief Justice in Bribery Scandal

Oct. 3, 2013]

The Corruption Eradication Commission (KPK) charged Constitutional Court chief justice Akil Mochtar with allegedly accepting a bribe to fix the court’s ruling on a contested election on Thursday in the latest high-profile corruption case to stain one of Indonesia’s most powerful institutions.

The chief of the Indonesia’s antigraft body announced the charges in a Thursday evening press conference, naming Akil, Golkar Party lawmaker and Indonesian Council of Ulema (MUI) treasurer Chairun Nisa and four others suspects as the allegations against the chief justice grew to include at least two cases.
“This is related to the Gunung Mas election,” KPK chief Abraham Samad said. “A.M. and C.N. have been named suspects as recipients [of the bribes].”

Antigraft investigators staged raids on several locations last night, detaining at least seven people on bribery allegations. Up to Rp 3 billion ($261, 000) in Singapore and US bank notes and a white Toyota Fortuner were seized from Akil’s South Jakarta home.
The men stand accused of conspiring with Hambit Bintih, the incumbent district head of Gungung Mas, Central Kalimantan, to rig Indonesia’s democratic process, selling off the authority of the Constitutional Court to fix the court’s ruling on Hambit ‘s contested victory in the district’s Sept. 4 elections.

Hambit was arrested with a businessman identified as Dhani at the Redtop Hotel & Convention Center, a hotel north of the National Monument (Monas) and a short distance off Jalan Hayam Wuruk. Another businessman, Cornelis, was also detained and charged in connection with the case.
Hambit and Arton S. Dohong were re-elected in an election rife with allegations of voter fraud levied by rival candidates Jaya Samaya Monong and Daldin. The rival pair contested the election results, filing a suit against the local General Elections Commission (KPU) that landed before Akil in the Constitutional Court.
The chief justice had presided over four court sessions before his arrest.

Allegations of corruption mounted on Thursday as the KPK charged the Golkar Party-connected Tubagus Chaeri Wardhana and a woman identified as Susi in a separate bribery case allegedly involving Akil.
Tubagus, the husband of South Tangerang Mayor Airin Rachmy Diany and brother of Banten Governor Ratu Atut Chosyiah, was arrested at his home on Jalan Denpasar, in Kuningan, South Jakarta, early on Thursday morning. Susi was arrested in Lebak, Banten.
The pair stands accused of bribing Akil for a favorable ruling in a case that would have ordered the Lebak district KPU to scrap the results of a district election and hold a re-vote. Local Golkar Party board chairman and candidate Kasmin filed
the complaint against the KPU, alleging widespread voter fraud, after he lost the election.
The allegations prompted one observer to call the arrest of Akil a “constitutional disaster” on Thursday, while former Constitutional Court Chief Justice Jimly Asshiddiqqie went as far as to moot the death penalty in an interview with the Indonesian news portal Republika, calling the threat of capital punishment “a deterrent effect.”

Indonesian President Susilo Bambang Yudhoyono held a televised press conference at the State Palace following the arrests, expressing shock at the allegations, before warning of the dangers of corrupting one of the nation’s highest courts.
“This is very shocking, especially as the Constitutional Court is a very important institution and has a big role in the
country’s administration,” Yudhoyono said.
“The Constitutional Court’s role [in Indonesia] is very strong. The verdict is final and binding as stated in our 1945 Constitution… just imagine if the decision is wrong and there is a deviation of the verdict.”

The Constitutional Court issued a recommendation to suspend Akil in the wake of the charges. The court also reassigned the chief justice’s ongoing cases to another judge, according to reports on the Indonesian news portal Vivanews.
Akil’s arrest is the second to implicate a high-ranking Indonesian public figure in less than three months.
The head of Indonesia’s oil and gas regulator SKKMigas Rudi Rubiandini was named a suspect over allegations that he accepted more than $600,000 in bribes from an oil company interested in receiving a tender from the Ministry of Energy
and Mineral Resources.

Indonesia is routinely ranked as one of the most corruption nations on earth despite 2009 campaign promises by
Yudhoyono to rid the nation of its endemic graft.

 

 

 


MK chief justice, Golkar lawmaker arrested for bribery charges


October 03 2013, 6:42 AM

The Corruption Eradication Commission (KPK) has announced
the arrest of
Constitutional Court (MK) Chief Justice Akil Mochtar,
a Golkar Party politician named Chairunissa,
Gunung Mas Regent Hambit Bintih and two businessmen identified as CN and DH, over bribery charges on Wednesday night in a sting operation.

 

 

KPK spokesman Johan Budi SP said the investigators had also seized around Rp 3 billion worth of Singapore dollars from Akil’s house as evidence. “We are now still questioning them,” Johan said as quoted by kompas.com.

The money was allegedly given to Akil as bribe money so he would deliver a ruling in favor of the regent during the Gunung Mas elections lawsuit currently being tried at the MK.

KPK investigators first arrested Akil, Chairunisa and CHN at Akil’s official house at the Widya Chandra housing complex in Kuningan, South Jakarta. Following the lead, the investigators then went to a hotel in Central Jakarta and arrested two more people, Hambit and DH.

Akil has just replaced Mohammad Mahfud MD as the new chief justice. Before serving as a judge, Akil was a Golkar politician. Three years ago, scholar Refly Harun went public with accusations regarding Akil’s alleged involvement in a graft case but Akil denied the accusations and no inquiries materialized. (dic)

 

 

 


Indonesia’s Top Judge Held in Corruption Case

JOE COCHRANE
Published: October 3, 2013

Indonesia — In the latest graft scandal in Indonesia, the chief justice of the country’s Constitutional Court was in custody on Thursday following a late-night raid on his official residence by anti-corruption investigators who allege he took a bribe to issue a favorable verdict in an election dispute.

 

 

Akil Mochtar, 62, who joined the Constitutional Court in 2008 and became chief justice in April, was arrested around 10 p.m. on Wednesday at his home in a government-owned housing complex in South Jakarta. Two other men in the house at the time — Chairun Nisa, a member of the national Parliament in Indonesia, and an unidentified local businessman — were taken into custody along with Mr. Akil, said Johan Budi, a spokesman for the independent Corruption Eradication Commission, or K.P.K.
He said investigators recovered a paper bag full of Singaporean and U.S. dollars totaling $232,000.

Mr. Budi said investigators later arrested four other men Wednesday night at a hotel in Central Jakarta. They say these men also involved in the bribery payment to Mr. Akil. One of them was Hambit Binti, a district chief in Central Kalimantan Province on Borneo Island. Mr. Binti was re-elected on Sept. 4, but his opponent contested the result to the Constitutional Court, which has the sole power to rule on election disputes.
“We believe Hambit Binti gave the money to Akil Mochtar, through the lawmaker and the businessman, so he would win the legal case,” Mr. Budi said, adding that the raid resulted from a tip by a member of the public. “We are still questioning Akil Mochtar, and he will remain in custody.”

The chief justice’s arrest was the latest in a string of high-profile corruption cases involving senior Indonesian government and political figures. In August, the head of the country’s oil and gas regulator was arrested on bribery allegations after anti-corruption investigators raided his home and found more than $700,000 in cash. In January, Luthfi Hasan Ishaaq, chairman of the Islamic-based Prosperous Justice Party, was arrested by the K.P.K. for allegedly taking bribes in exchange for securing a government contract to import boxed beef.

In February, Anas Urbaningrum, chairman of President Susilo Bambang Yudhoyono’s governing Democratic Party, resigned after the K.P.K. named him a suspect in a corruption investigation into the construction of a national sports complex in West Java Province. Two months earlier, Andi Mallarangeng, a senior Democratic Party member and the country’s minister for sports and youth affairs, resigned after being named a suspect in the same case.

Dadang Trisasongko, secretary general of the Indonesian offices of Transparency International, the Berlin-based nongovernmental organization, said Mr. Akil’s arrest was dangerous for the country’s democratic transition, which began in 1998, given the power of the Constitutional Court.
“The judges in the Constitutional Court have the authority to overturn election results and even laws passed by Parliament,” he said.
Mr. Dadang said Indonesia’s judiciary was its third-most corrupt institution, behind the national parliament and national police. Indonesia ranked 118 out of 176 countries in Transparency International’s most recent global corruption perception index.

 

 

 

 

 

 

Indonesia Has Bigger Problems Than Bikinis
By William Pesek
September 20, 2013.
Cand the government heed their complaints. Are they livid about corruption? No. Fed up with poverty? Not really. Angry over political gridlock? Not so much. It’s those damn bikinis.

In recent days, the nation with the world’s largest Muslim population has been consumed by protests against the
Miss World pageant finale on Sept. 28, originally scheduled to be held near Jakarta. Muslim groups, including radical ones, have threatened violent attacks.
The government has responded by moving the event to Bali — the Hindu-majority island popular with Westerners — increasing security, and hoping for the best.

This column isn’t a defense of beauty contests. My question is, why the misplaced anger? Where’s the outrage over obscene levels of graft, which eats up national wealth and forces 115 million Indonesians to live on less than $2 a day? Where are the placards condemning policies that have made the rupiah Asia’s most pathetic currency? Why don’t we hear chants demanding greater accountability from leaders?
It’s great that Indonesians are worked up, but their ire would be more constructive if it were focused on the right target. Investors know the trouble. And that’s the biggest problem of all.

Deep breath
First, let’s all take a deep breath.
The risk of Southeast Asia’s biggest economy plummeting into free fall, as it did in 1997 is quite small.
Its banks are much healthier. The government is far more transparent, and the central bank is sitting on $93 billion of currency reserves. That might seem like a paltry amount compared with, say, South Korea’s $331 billion, but it’s more
than twice the size of the International Monetary Fund-led bailout Indonesia received 16 years ago. Also, short-term foreign-currency debt levels are manageable.

The political stability that President Susilo Bambang Yudhoyono has established since 2004 has won investment-grade ratings from Fitch Ratings and Moody’s Investors Service. The former general is now taking aim at Standard & Poor’s,
which rates the economy at the highest junk level.

Foreign-direct investment trends, meanwhile, show that Indonesia’s domestic market is still wooing considerable long-term money. The total rose 18.9 percent from a year earlier in the second quarter to $6 billion.
Although that’s the slowest pace since 2010, it’s still suggestive of a nation that, for all its warts, has a bright future. Long-term investors remain enthusiastic about Indonesia’s vast store of natural resources and the fact that 26 percent of
its 250 million people are younger than 15.
Yet short-term investors are focusing ever more intently on those warts, which Yudhoyono’s government must urgently address.
The most immediate worry is a trade deficit that widened to a record $2.3 billion in July, weighing on a current account
that’s been in shortfall for seven straight quarters. That’s prompting waves of hot money to flee and creating a sense of crisis.

The bigger problem is the government’s failure to use the good times to accelerate infrastructure upgrades and institutional reforms. Inadequate ports, highways, refineries and power grids are squandering Indonesia’s chances of attracting manufacturing jobs that are now going to China, the Philippines and Vietnam. The government has been remiss about making Jakarta’s bureaucracy more efficient, building more credible judicial and tax systems, rolling back unaffordable subsidies, and scrapping limits on mining exports that smack more of nationalism than good economics.

Enriching cronies
Corruption remains rampant.
Early on, Yudhoyono scored some headline-grabbing victories over graft. But the campaign lost focus and urgency.
In 2012, Indonesia slipped 18 places in Transparency International’s Corruption Perceptions Index, falling behind Egypt. Yudhoyono can’t run in next year’s election. What if his successor cares more about enriching cronies than moving Indonesia forward?

The Miss World controversy raises another concern: the democratically elected leader of a secular government caving to
the whims of an ultraconservative minority of Muslims. One of Yudhoyono’s most important tasks is to hold the forces of creeping Islamization at bay. Last year, radicals prompted Lady Gaga to scrap a sold-out concert in Jakarta, making for damaging headlines overseas.

The last few months have shown how fickle markets can be about Indonesia and how vital it is for the government to head off negative sentiment before it overwhelms the economy. Yudhoyono must use his last 10 months in office to cement the sweeping changes that originally made Indonesia an investment darling. He must accelerate plans to spend $125 billion on infrastructure by 2025. He should empower an independent anticorruption ministry with full subpoena powers. The country needs a grand blueprint and timeline for the strengthening of democratic institutions. The former general must insulate the government further from military influence, as well as contain extremism.

But Indonesians need to do their part, too. Their voices can keep Yudhoyono focused on the real obscenity.
It’s not beauty contests or scantily clad pop stars but a vast kleptocracy that thrives off the masses being distracted by the small stuff.
The more voters obsess about exposed skin, the less the fraudulent class has to worry about being exposed. That’s the real travesty here, not Miss World’s bikini.

Bloomberg
(William Pesek is a Bloomberg View columnist.)
To contact the writer of this article: William Pesek in Tokyo at wpesek@bloomberg.net.

 

 

 

 

 

 

 

Ramon Magsaysay Awards: Indonesia’s KPK fights corruption without fear
By Patricia Esteves (The Philippine Star) |
August 29, 2013

MANILA, Philippines -

Indonesia, once mired in massive corruption, has won admiration for fighting the scourge in the past few years.
Leading the charge is a single powerful government institution, the Komisi Pemberantasan Korupsi (KPK) or Corruption Eradication Commission, an agency that confronted head-on the rampant and systemic corruption that remains as a legacy of President Suharto’s three decade-long kleptocracy.

The modest progress Indonesia has made against corruption in the past few years has resulted from KPK’s investigations and reforms in the most corrupt institutions in the country.
Under KPK’s watch, more than 360 corrupt Indonesians were put to jail and assets worth $80 million were returned over to the state treasury in the last ten years since it was established.

“The commission has investigated, prosecuted and achieved a 100 percent conviction rate in cases of bribery and graft related to government procurements and budgets. We have jailed more than 360 persons, most of them Parliament members, police officials, bureaucrats, bankers, governors, ambassadors, judges, mayors and other untouchable members of Indonesia’s society. We have proved that if they’re proven corrupt, they are not beyond the law’s reach, we will go after them and we will make them pay,” Pak Adnan Pandu Praja, one of the commissioners of KPK, told The STAR yesterday.

The KPK is one of this year’s recipients of the Ramon Magsaysay award for its successful and brave campaign against corruption in Indonesia
Praja said the strength of KPK lies in its draconian measures to arrest and prosecute people who are guilty of graft.
“The KPK can conduct searches and seizures, freeze assets. We can impose travel bans, compel cooperation from government agencies, and even intercept communications without prior judicial approval,” Praja said, referring to the agency’s warantless wiretaps.
“We changed the system, we implemented reforms and we showed we have the tenacity and determination to curb corruption and prosecute corrupt officials,” he said.

In 2002, the Indonesian government, through the initiative of civil society, passed a law establishing the KPK. It has a far-reaching mandate, exercising exceptional powers that range from investigation and prosecution to prevention and the coordination of agencies authorized to combat corruption.
It strictly monitors the activities of the politicians and once investigated, they have no choice but to submit to the audit and investigation of KPK, Praja said.
He stressed KPK’s powers are not just prosecutorial but preventive as well.
“The KPK carries out audits on officials, undertakes public awareness campaigns, and studies government management systems to reduce the potential for corruption,” he said.

In five years, the KPK, which was governed by five people, helped transform the political landscape in the country.
“The KPK has undergone a process of institutional strengthening that has produced a highly professional workforce, capacitated with cutting-edge technologies, and governed by a strong internal code of ethics. We are very proud that our commissioners are all men of integrity,” he said.

What is noteworthy about the commission is their preventive programs, which closed opportunities for corruption, Praja said.
KPK has undertaken civil service reforms for accountability and transparency. They have also implemented stricter rules on wealth reporting by public officials, changing management and operational systems for more transparency.
They have also set up integrity zones in the bureaucracy which aims to monitor and grade various government agencies.

Knowing that the Indonesian public plays a big role in the eradication of corruption, the KPK introduced anti-corruption awareness programs from elementary to college.
The KPK has opened honesty shops all over Indonesia where customers pay for what they get by depositing money in a box – no cashiers, no personnel to man the store.
Today, there are more than 7,000 honesty shops all over Indonesia.

However, the KPK has faced opposition from different groups in Indonesia, most especially from Parliament and the police institution.
Praja said they have been threatened and attacked for the ways they police corrupt officials.
“We have experienced harassment and intimidation, we’ve had threats, we’ve had interagency feuds and slashed budgets – all these were geared to stop the agency from its function,” Praja said.
“We are sometimes even at the mercy of the president and the parliament,” he added.
“But we are unbowed, we will never give up, knowing we have the support of the Indonesian public,” he said.

When it locked horns with the national police, thousands staged public demonstrations supporting KPK. When the parliament refused to allocate money for a much-needed KPK building, Indonesian citizens voluntarily donated money for the building construction.
“The people are our defenders. When the police were attacking us and threatening to close our building, Indonesians built human chains around us to protect us. We have the support of the public,” he said.

Asked if their system can work in the Philippines, which is also known for being one of the most corrupt in the world, Praja said yes.
“Of course, if you are determined to change the system and you have the support of the public, you can effectively fight corruption too,” he said.

For 10 years, KPK has become a symbol of reform and hope for Indonesians, and is hailed as one of the few effective anti-corruption agencies in the world.


In electing KPK to receive the 2013 Ramon Magsaysay Award, the board of trustees recognizes its fiercely independent and successful campaign against corruption in Indonesia, combining the uncompromising prosecution of erring powerful officials with farsighted reforms in governance systems, and the educative promotion of vigilance, honesty and active citizenship among all Indonesians.

 

 

 

 

 

 

 

Former Police Gen. Djoko Susilo Sentenced to 10 Years
By SP/Novianti Setuningsih
September 3, 2013.

 

The Jakarta Anti-Corruption Court sentenced Insp. Gen. Djoko Susilo to 10 years in prison and confiscated most of the two-star police general’s Rp 200 billion ($18 million) in illicit assets in a verdict heralded as a potentially vital step in the nation’s fight against endemic corruption on Tuesday.

Djoko was declared guilty of corruption and money laundering by a panel of five judges after a marathon three-hour reading of the nearly 3,000 page indictment detailing his involvement in a graft-tainted driving simulator procurement project that cost the state some Rp 121 billion in losses. He was ordered to pay Rp 500 million in fines or face an additional six months in prison.
The sentence was less than the 18 years in prison and Rp 1 billion in fines requested by prosecutors. Prosecutors had also demanded that he return Rp 32 billion to the state – the same amount as his alleged bribe.
Prosecutors charged Djoko with money laundering in an effort to confiscate the Rp 200 billion in assets the former National Police Traffic Corps. chief accumulated during his tenure as a police officer. The implementation of the little-used law was championed as a milestone in the increasingly bold Corruption Eradication Commission’s (KPK) uphill fight against graft in a country routinely ranked as one of the most corrupt nations on earth.

Indonesia has historically struggled to stem the flow of illicit money in a nation where corruption has permeated all levels of society, from public school teachers to senior members of President Susilo Bambang Yudhoyono’s ruling party.
Corruption charges brought against prominent officials, especially ranking police officers, rarely result in serious jail time or the confiscation of graft funds. The system, instead, allowed corrupt officials to serve short prison sentences without fear of losing the very funds they were convicted of stealing.

The money laundering charge, which allows the prosecution to seize a graft suspect’s illegal wealth, represents a step forward for the KPK. Most of Djoko’s assets — more than 30 properties and seven cars — will be seized. The deeds to four properties, and two marriage certificates, will be returned, the court ruled.
The remaining properties and seven vehicles will remain the property of the state.

Djoko’s attorney Juniver Girsang said his client planned to file an immediate appeal in a televised press conference from the courthouse. Another lawyer, Teuku Nasrullah, told MetroTV that the defense took exception with several of the facts forming the foundation of the charges.

Indonesia Corruption Watch campaigner Tama S. Langkun urged the KPK to file an appeal.
“He was a law enforcer, his punishments should have been harsher that civilian corruptors,” he said. “And his political rights must definitely be revoked to prevent people like him running in the future legislative election, I can’t imagine what’s going to happen to this country if a person like him became a lawmaker,” he said.

The KPK may appeal the verdict, KPK Deputy Chief Bambang Widjojanto said in a short televised press conference.
“The KPK thinks the sentence is debatable but we respect the decision and we are going to use the seven days given by the court to think it over because we think the verdict isn’t momentous enough,” Bambang said. “The legal construction of the prosecutors’ demands was really good, but the result has not managed to accommodate everyone’s wishes.
“We are grateful for the public’s attention to this case. The public’s attention has helped [us] guide this case to the end.”

The case was closely watched by legal observers and anti-corruption activists as a litmus test for future graft cases, including the ongoing investigation into several public officials implicated in a scandal centered on the Ministry of Energy and Mineral Resources and state oil and gas regulator SKKMigas.
Investigators are currently comparing the official wealth report and bank accounts of Waryono Karyo, the secretary general of the energy ministry, with the combined wealth of all assets that can be traced back to him.

 

 

 

 

Djoko Susilo: The Richest Corruption Suspect Identified By the KPK Yet
By SP/Novianti Setuningsih on 12:13 pm August 22, 2013.

Antigraft investigators have identified some Rp 200 billion ($18 million) in graft-tainted assets belonging to former National Police Traffic Corps chief Insp. Gen. Djoko Susilo, the largest accumulation of wealth by a corruption suspect to date, the Corruption Eradication Commission (KPK) said.
“There has never been, in [Indonesian] history, the seizure of funds in excess of Rp 200 billion,” Bambang Widjojanto, deputy chairman of the KPK, said. “The closest corruption case was that of Bahasyim Assifie, and there it was only Rp 60 billion.”

The antigraft body charged Djoko with money laundering after arresting the three-star police general for his alleged involvement in a corrupt driving simulator procurement project during his time as the head of the traffic police. The scheme, which secured a government contract for an unqualified metal company acting as a middle man, reportedly cost the state some Rp 121 billion in losses.

In the ensuing investigation the KPK identified more than 30 properties and seven cars allegedly owned by Djoko but listed in the names of his family members. Anti-corruption court prosecutors have requested the state seize up to Rp 200 billion in assets from Djoko if he is found guilty of corruption and money laundering by a panel of judges at the Jakarta Anti-Corruption Court.
Prosecutors have demanded 18 years in prison and Rp 32 billion in fines, of the confiscation of additional assets and an extra five years in prison, for the disgraced top cop.

Djoko, in prior court appearances, claimed his tremendous wealth came from a series of side ventures, like the operation of a gas station identified by the KPK, used to supplement his police salary.
His trial is currently ongoing.

 

 

 


Kernel Oil Admits to Paying $700,000 in Bribes to SKKMigas

By Rizky Amelia on 2:32 pm August 20, 2013.
The Singapore-based Kernel Oil company paid suspended Indonesian oil and gas regulator SKKMigas chief Rudi Rubiandini some $700,000 in bribes in an attempt to break into the nation’s oil industry, the company’s attorney said on Tuesday.

Oil company official Simon Gunawan Tanjaya admitted to paying two bribes totaling $700,000 to Rudi’s golf trainer, a man named Deviardi, in a reported effort to purchase favor within the national oil and gas regulator, attorney Junimart Girsang said at the Corruption Eradication Commission (KPK) headquarters in Jakarta.

“Simon admitted the money was given in two payments of US dollars,” Junimart said.
He paid a first bribe of $300,000 before Idul Fitri, the lawyer said. He allegedly delivered a second bribe of $400,000after the holiday. Simon’s attorney said his client never handed the bribes directly to Rudi and did not know where the funds would eventually land.
“He only knew the money would be given to Ardi [Deviardi],” Junimart said. “Ardi later managed to distribute them, so Simon doesn’t know Rudi or other SKKMigas officials.”

The three men were arrested by antigraft investigators on August 13 in a corruption probe targeting Rudi’s office. The KPK named them as corruption suspects one day later.
Investigators seized more than $300,000 in cash and gold from Rudi’s office and a safety deposit boxe following his arrest. The former Bandung Institute of Technology academic was dismissed from his post at the state-owned Bank Mandiri and suspended from his position as head of SKKMigas in the wake of the corruption scandal.
“If Rudi’s legal case progresses there will certainly be a new [permanent] chief,” Minister of Energy and Mineral Resources Jero Wacik said shortly after Rudi’s arrest.

The investigation has since widened to include members of President Susilo Bambang Yudhoyono’s graft-tainted Democratic Party. Allegations that senior officials at the Ministry of Energy and Mineral Resources were involved in rigging Indonesia’s oil tenders surfaced last week after KPK investigators seized a bag containing $200,000 in cash from secretary general Waryono Karyo’s office.

SKKMigas does not have the authority to award oil and gas contracts. The nation’s oil tenders fall under the authority of the Ministry of Energy and Mineral Resources. The discovery of a large amount of cash at Waryono’s office and the size of the bribes reportedly delivered to Rudi have some investigators wondering if the bribes were meant for ministry officials associated with the Democratic Party.

The Energy and Mineral Resources minister denied the allegations last week, saying his role as an adviser to the Democratic Party had nothing to do with the the Kernel Oil graft allegations.
“It’s not related to the party. There’s no party matter here. It’s not unusual that in the preliminary [investigation] these things are linked,” Jero said.
Waryono also denied the allegations, expressing confusion as to why the KPK would search his office.
“I swear to God I didn’t [receive any bribes]. I’ve only just heard of Kernel now,” he said. “I’m shocked that I’ve even been implicated in this case.”

The corruption scandal is the latest to tarnish the image of Indonesia’s oil and gas industry. The conviction of three local employees of a Chevron subsidiary on disputed corruption charges last month cast a shadow of doubt over the nation’s regulatory environment, prompting concern from foreign investors.

The resource-rich nation is one of the most corrupt in the world, according to Transparency International. Experts have warned that Indonesia’s endemic corruption and a recent wave of resource nationalism could temper investment and hinder economic growth in Southeast Asia’s largest market.

 

 


Oil Regulator in Indonesia Arrested in Bribery Investigation

By JOE COCHRANE
Published: August 14, 2013

JAKARTA, Indonesia — Indonesia’s anticorruption agency has arrested the head of the country’s oil and gas regulatory authority in connection with a bribery investigation, officials said Wednesday, in the latest setback for the country’s troubled energy sector.

Rudi Rubiandini, a former deputy energy minister who took over the oil and gas regulatory authority in January, was being detained for questioning by the anticorruption agency, known as the KPK, after being arrested Tuesday night following a raid on his home, said Elan Biantoro, a spokesman for the regulatory authority.
“They are still questioning him and we don’t know the progress,” the spokesman said. “The KPK came to our offices this morning and sealed off Mr. Rudi’s private office.”

On Tuesday evening, investigators went to Mr. Rudi’s house in South Jakarta and found him with $700,000 in cash, Johan Budi, a spokesman for the anticorruption commission, told reporters. Two men later identified as representatives of Kernel Oil, an oil trading company, were at Mr. Rudi’s home at the time of the raid and were also arrested, he said.
Mr. Elan said the oil and gas regulatory body had no official relationship with Kernel, as it is a foreign trading company and not involved in oil exploration or production in Indonesia. A person who answered the phone at Kernel’s office in Singapore refused to comment or forward any calls.
The arrest is the latest in a series of problems that have increased uncertainties for foreign investors in Indonesia, which is hoping to bolster oil production, which has plummeted during the past decade.

Last November, Indonesia’s constitutional court shocked the energy industry by dissolving the oil and gas regulatory authority’s predecessor, known as BP Migas, which was an independent state body, after a legal challenge by people connected with Islamic-based political parties. The ruling came as Indonesian lawmakers were calling on the government not to renew expiring oil production-sharing contracts with foreign energy companies. The current regulatory body, known officially as the Special Task Force for Upstream Oil and Gas Business Activities, or SKK Migas, was created to replace BP Migas.

Last month, an anticorruption court sentenced three Indonesian employees of Chevron, a leading oil producer in Indonesia, to two-year prison terms for graft in a case that analysts said could lead to the future criminalization of civil disputes in the energy sector.

“All of these issues are creating a lot of noise and dissonance for investors,” said Andrew White, executive director of the American Chamber of Commerce in Indonesia. “Whatever the facts may be, a narrative is unfolding in Indonesia that it’s becoming more difficult to invest here.”

Indonesia relies increasingly on the technical expertise and investment dollars of multinational energy companies for future exploration because most of its untapped oil reserves are in deepwater areas in the eastern part of the archipelago.

However, there has been growing uncertainty among foreign investors over bureaucratic red tape for permits, overlapping regulations and an increase in anti-foreign sentiment in the energy sector. Those concerns have been followed, more recently, by legal uncertainty about production-sharing contracts because of the Chevron case.

Oil and gas account for about 8 percent of Indonesia’s gross domestic product and 28 percent of state budget revenue, according to the Indonesia Petroleum Association.

But oil production has steadily dropped over the last decade to less than 900,000 a day at present from 1.4 million barrels in 2000, according to the Ministry of Energy and Mineral Resources, which prompted Indonesia to give up its membership in the Organization of the Petroleum Exporting Countries in 2008 after it became a net oil importer.

 

 

 

 

 


Negara preman
Senin, 15 April 2013 17:39 WIB | 580 Views

Oleh Fritz E Simandjuntak - Sosiolog

Jakarta (ANTARA News) -

Kasus penyerbuan dan meninggalnya empat tahanan di Lembaga Pemasyarakatan Cebongan, Sleman, Daerah Istimewa Yogyakarta, mengundang beragam pandangan di masyarakat.
Ada kelompok masyarakat yang merasa lega atas terbunuhnya empat orang tahanan yang memang sering mengganggu kenyamanan masyarakat di Yogyakarta.

Ada pula yang mengutuk tindakan semena-mena tersebut yang dianggap telah melanggar Hak Azasi Manusia.
Peristiwa tersebut mengukuhkan bahwa hukum di negara ini belum menjadi ujung tombak keadilan di masyarakat.
Lembaga yang berkaitan pada penegakkan keadilan, seperti polisi, hakim, jaksa, kehilangan kepercayaan karena terlibat begitu banyak kasus pelanggaran penegakkan hukum sendiri.

Terlepas dari pro dan kontra pendapat di atas, satu hal yang patut menjadi renungan kita semua bahwa sikap "premanisme" memang telah terjadi di segala lapisan masyarakat Indonesia.
Kita mulai dari preman birokrasi. Korupsi di kalangan birokrasi melalui penggunaan anggaran, baik itu APBN maupun APBD, masih saja terjadi.

Menteri Dalam Negeri Gamawan Fauzi memperkirakan bahwa dari 536 Kabupaten dan Kota yang ada saat ini, sudah ada 291 Kepala Daerah jadi tersangka korupsi. Fakta ini sangat memprihatinkan.
Sementara salah satu menteri dalam ceramahnya di Singapura menyatakan bahwa penghambur-hamburan masih sering dilakukan oleh kepala daerah.

Anggaran lebih banyak digunakan untuk kepentingan pribadi, seperti kebutuhan rumah tangga, pakaian, acara-acara seremonial, kendaraan dan perjalanan ke luar daerah.
Hal ini memang tercermin dari alokasi anggaran di mana lebih dari 60 persen untuk biaya personil sementara yang dialokasikan untuk pembangunan hanya sekitar 12 persen.
Preman birokrasi ternyata sangat erat kerjasamanya dengan preman politisi di perwakilan rakyat. Baik itu tingkat DPR maupun DPRD.

Anas Urbaningrum
Chairmain Partai Demokrat

Angelina Sondakh
Partai Demokrat

Andi Mallarangeng
Minister of Sports

Accused of being complicit in
various corruption schemes

Suspect in the high-profile
SEA Games’ bribery case


Accused of involvement in the
SEA Games corruption case.


Kasus korupsi pembangunan gedung olahraga Hambalang yang dimotori Nazaruddin, mantan bendahara Partai Demokrat, telah membongkar besarnya jaringan preman korupsi di kalangan politisi.
Awalnya kasus itu menjerat Angelina Sondakh, yang kemudian merambat ke Anas Urbaningrum, mantan Ketua Umum Partai Demokrat dan Andi Mallarangeng, mantan Menpora.

Masih yang berkaitan dengan olahraga, Gubernur Riau Rusli Zainal sudah dijadikan tersangka atas pemberian dan penerima suap pembahasan Perda PON Riau 2012, disamping kasus Pelalawan.
Ada dugaan bahwa kasus suap menyuap ini juga melibatkan petinggi dari asal partainya.

Tentu saja preman suap menyuap dan korupsi itu juga melibatkan pengusaha. Baik yang aktif maupun tidak aktif di politik.

Hartati dituduh melakukan penyuapan terhadap Bupati Buol Amran senilai Rp3 miliar sebagai kompensasi agar Amran mengeluarkan izin guna pengurusan Hak Guna Usaha (HGU) perkebunan miliknya di Buol. Baik Hartati maupun Amran telah divonis pengadilan.

Kasus lain yang mengejutkan adalah masalah pajak yang dilakukan oleh Asian Agri. MA memutuskan perusahaan papan atas kelapa sawit itu untuk membayar denda ke negara Rp2,5 triliun.

Berkaitan dengan penggelapan pajak, kita tentu masih ingat nama Gayus Tambunan.

Indonesian taxman Gayus Tambunan jailed for corruption
By Alice Budisatrijo BBC News, Jakarta

An Indonesian former tax official has been jailed for seven years for causing millions of dollars in state losses.

Gayus Tambunan was found guilty on four counts of corruption - including bribing his way out of bribery charges

 

 


Mantan pegawai negeri sipil di Direktorat Jenderal Pajak Kementerian Keuangan Indonesia dan lulusan STAN tahun 2000 ini dituduh oleh Komjen Susno Duadji mempunyai uang Rp25 miliar di rekeningnya plus uang asing di brankas bank atas nama istrinya dan itu semua dicurigai sebagai harta haram.

Lebih kaget lagi kita ketika KPK berhasil membongkar dugaan korupsi proyek simulator SIM di Polri yang telah mengakibatkan kerugian negara miliaran rupiah yang diduga dilakukan mantan Kepala Korlantas Polri Inspektur Jenderal Polisi Djoko Susilo.
Nilai kekayaan jenderal berbintang dua ini diduga sampai Rp 100 miliar dan KPK telah melakukan pembekuan atas aset aset yang dimiliki oleh Djoko Susilo.

Tentu saja temuan ini mengingatkan kita akan isyu rekening gendut di lembaga Polri.
Salah satu majalah di Indonesia pernah mengungkapkan data data enam jendral polisi yang memiliki rekening gendut tersebut.


Berkas Perkara Djoko Susilo Dilimpahkan Hari Ini

'Menurut jaksa, pelimpahan berkas perkara tahap kedua
dan dakwaan bakal diserahkan tanggal 15 April,'
ujar kuasa hukum Djoko, Tommy Sihotang.

Djoko Susilo Graft Trial to Open Next Week
Rizky Amelia | April 15, 2013

The Corruption Eradication Commission’s (KPK) case against disgraced National Police Traffic Corps. chief Insp. Gen. Djoko Susilo is expected to hit the courthouse next week, the KPK said on Monday.

 

 

Sayangnya tidak ada upaya lanjut untuk melakukan pemeriksaan atas jumlah kekayaan
yang bisa saja mirip-mirip dengan Djoko Susilo.

KPK Tangkap Hakim Setyabudi Tejocahyono

KPK menangkap hakim sekaligus
Wakil Ketua Pengadilan Negri Bandung,
Setyabudi Tejocahyono.

Ia tertangkap menerima suap uang sebesar
Rp 150 Juta dari seseorang yang diduga sebagai perantara suap yang bernama Asep.

 

 



Institusi kehakiman juga tidak lepas dari preman korupsi.
Baru baru ini Wakil Ketua PN Bandung, Setyabudi Tejocahyono, tertangkap tangan oleh KPK karena diduga menerima suap sebesar Rp150 juta dari total Rp1 miliar yang dijanjikan.
Diduga, dugaan suap itu terkait pengurusan kasus dugaan korupsi bantuan sosial (Bansos) Pemerintah Kota (Pemkot) Bandung sebesar Rp66,6 miliar.

Sementara itu Wakil Ketua Komisi Yudisial (KY) Imam Anshori Saleh mengatakan dalam dua tahun terakhir sebanyak delapan hakim telah dipecat karena suap dan lebih dari 20 hakim kena sanksi tidak menyidangkan perkara selama jangka waktu tertentu atau dikenal dengan sanksi non-palu.

Pada saat pelantikan jajaran Kabinet Indonesia Bersatu I tahun 2004, SBY menyatakan agar para menteri dan pembantu Presiden lainnya menjadi pejabat yang bersih, bebas dari korupsi dan segala bentuk penyimpangan.
"Saya pun akan melakukan hal yang sama dengan Saudara, untuk menegakkan pemerintahan yang baik untuk melakukan pencegahan dan pemberantasan terhadap segala bentuk penyimpangan, marilah kita mulai dari diri kita sendiri, dari lingkungan kita, dari jabatan kita, dan utamanya sebagai seorang presiden, dari diri Pemerintah Republik Indonesia," itu yang dinyatakan oleh Presiden SBY.

Dari peristiwa-peristiwa di atas, kita bisa melihat dengan jelas bahwa dalam hal korupsi, Presiden SBY gagal menjadikan negara ini yang bebas korupsi.
Preman, mulai dari tingkat jalanan sampai yang bersafari dan memakai dasi, semakin menggurita bahkan melibatkan orang-orang dekat Presiden SBY sendiri.

Kembali pada topik penembakan di Lembaga Pemasyarakatan Cebongan, Sleman, Daerah Istimewa Yogyakarta.
Sepatutnya kita berharap lebih jauh lagi, bukan saja kepada prajurit Kopassus tapi mungkin juga aparat anti teror di POLRI.

Agar mereka bukan saja bersikap tegas terhadap preman tingkat jalanan, tetapi juga bersikap tegas terhadap preman-preman di birokrasi, berdasi, dan profesional.
Karena rasa keadilan di masyarakat sudah terusik oleh kelakuan preman-preman negara di segala tingkatan.
Kalau tindakan itu yang terjadi, meskipun melanggar HAM, tetapi preman preman yang mengambil duit negara akan langsung kapok.

Dan tindakan akan berhasil mentransformasikan negara Indonesia dari negara preman menjadi negara aman. Untuk ituk para prajurit tersebut patut kita berikan bintang mahaputera.

 

 

 

Anas Urbaningrum, right, listens as President Susilo Bambang Yudhoyono delivers a speech
during a party meeting in Jakarta, Indonesia. Source: AP

 

SBY party chief Anas Urbaningrum accused of accepting car as bribe
by: Peter Alford, Jakarta correspondent
From: The Australian
February 23, 2013 11:41AM
Indonesia. Source: AP

INDONESIA'S governing Democratic Party has been thrown into crisis by the naming of its chairman, Anas Urbaningrum, as a corruption suspect.
Mr Anas was named last night by the Corruption Eradication Commission (KPK) in one of a tangle of cases wrecking the party that President Susilo Bambang Yudhoyono established in 2001 as an antidote to government corruption.

Only last weekend the President failed to resolve the Anas problem when he was unable to push through a move sponsored by Partai Demokrat (PD) veterans to remove him.
Mr Anas, 43, has been at risk of a corruption prosecution for almost two years but is so strong in the middle levels of their party that Dr Yudhoyono's supporters have been unable to shift him.

In the meantime, PD's electoral support has collapsed from the largest share of the 2009 parliamentary vote - 21 per cent - to eight per cent, according to recent opinion polls.
Now Dr Yudhoyono, 63, is stuck with the worst of Anas scenarios.
He has a chairman accused of corruption by KPK, which has a near-perfect record of prosecuting and jailing suspects, who is regarded as a crook by many voters, but who clings to his party post.

Mr Anas also has formed a close political relationship with the President's youngest son, Edhie Baskoro Yudhoyono, who is PD's secretary general.
Further complicating the problem is that KPK appears to have been pressured by public controversy into naming Mr Anas in the most trivial of the allegations against him.
He is accused in the so-called Hambalang sports centre case of accepting a Toyota Harrier car as a bribe for his part in allegedly fixing government construction contracts.

"The KPK preliminary investigation has found strong evidence that unveils the suspect's involvement in a bribery case and other cases related to the construction of the Hambalang sports center," commission spokesman Johan Budi said last night.
Charged under Article 12 of Indonesia's Counter Corruption Law, Mr Anas has been banned from travelling abroad.
He has not yet responded publicly to the charge.

Indonesia has parliamentary and presidential elections next year.
Dr Yudhoyono, who was first elected in 2004 is prevented by the national constitution from serving more than two terms.
His party has no obvious attractive candidate to succeed him

 

 

Anas Urbaningrum
Democratic Party Chairman

 


Indonesia’s anti corruption drive leads to resignation of Indonesia’s Democratic Party Chair
23-Feb- 2013

Graft suspect Anas Urbaningrum stepped down from his post as the head of Indonesia’s ruling party in a Saturday press conference held less than 24 hours after being charged as part of the Corruption Eradication Commission’s (KPK) ongoing probe into the Hambalang construction project.

Anas took the stage at the party’s headquarters in his monogrammed blue Democratic Party jacket, delivering his resignation before a crowd of jostling photographers and cameramen. The former chairman was calm as he announced his departure.
“I have no bitterness, no anger,” Anas said. “This is not about power, this is my own standards telling me to step down.”
The KPK charged Anas on Friday with allegedly accepting a bribe to help rig the contract bidding process for the construction of the graft-tainted Hambalang sports center. It was the latest corruption charge levied against a top Democratic Party official.

Former sports minister Andi Mallarangeng recently stepped down after being charged in connection with the same case.
Anas, who once boasted that he would agree to be hanged from the National Monument (Monas) if he was found guilty of corruption, maintained his innocence and said was surprised by the KPK’s decision.
“I was so sure that I would not have any legal [issues] with the KPK because the commission worked independently and free from influence,” Anas said, “but I started to hesitate when there was pressure for the KPK to make a decision regarding my legal status after I was told [by President Susilo Bambang Yudhoyono] to focus on my legal case.”

Anas accused top party officials of plotting against him and said he was suspicious that they were so confident he would be charged by the KPK.
“It all started at the party’s congress,” he said of the alleged plot. “I won’t explain it in detail, but at the time I felt like Anas was like a baby whose birth was unwanted.”

Anas has faith that he will beat the charges, he said.
“I still have faith for this country,” Anas said. “Our country is based on law. I still have faith that through a honest, objective and transparent legal process, the truth will prevail.”

The former chairman faces four to 20 years in prison under Indonesia’s anti-corruption laws. He was charged with accepting a bribe that was later used to purchase a pricey Toyota SUV.
Antigraft watchdogs, worried that the charges might not stick, urged the KPK to charge Anas with money laundering on Saturday. Indonesia Corruption Watch researcher Tama S.Langkun said the KPK’s case could fall apart if prosecutors can’t prove that Anas accepted bribes while serving as a lawmaker.

Bribery charges are generally filed against public officials, Tama said.
If the KPK charged Anas with money laundering instead, the antigraft body could trace his assets and amass a larger body of evidence, Tama explained.
“We are still waiting for the KPK to use the law on money laundering,” he said. “I think [Insp. Gen.] Djoko Susilo’s case can be used as a standard for the KPK so they can trace the assets beyond the Harrier [SUV].”

The KPK charged Djoko, the former chief of the National Police traffic corps., with money laundering stemming from allegations that he accepted a Rp 2 billion kickback to award a public contract to an unqualified metal company interested in taking a cut.

The commission used the money laundering charges to track down Djoko’s assets, Tama said, including ten homes worth billions of rupiah found in posh sections of Jakarta, Solo, Semarang and Yogyakarta.

Former Democratic Party treasurer Muhammad Nazaruddin claimed Anas accepted Rp 100 billion in kickbacks from the Hambalang project and used the money to buy the votes of party officials during his campaign for chairman.
Nazaruddin, who was sentenced to seven years in prison in an another corruption case, has repeatedly pointed the finger at fellow Democrats Anas and Andi, accusing both of corruption.

Anas, as he approached the end of his speech, warned that this case would continue to expand.
“Trust me, this is not the end of everything,” he said. “This is just the very beginning of something very big.”

 



Democratic Party Chairman Finally Named Graft Suspect


Written by Indra Budiari

22-02-2013

JAKARTA (Indonesia Today) - The Corruption Eradication Commission (KPK) has finally named Anas Urbaningrum, chairman of President SBY's Democratic Party, a graft suspect in the Hambalang sports center scandal.

After hours of case exposure and examination on Friday (February 22), five KPK leaders finally agreed to sign the inquiry commencement notice and named Anas as KPK suspect. “After the case exposure, I was called by the leaders to declare to public. All of them agree,” said KPK spokesperson Johan Budi

Johan Budi, furthermore, revealed that Anas will be charged for receiving graft or promises related to the Hambalang project with article 12 a or article 12 b or article 11 of Corruption Law.

Interestingly, KPK will likely develop another case to charge the party chairman besides Hambalang sports center project. However, Johan Budi refused to mention any further detail about the ‘other’ projects.

Firman Wijaya, lawyer of Anas Urbaningrum, argued that the suspect status for his client is fishy and unfair. “I already suspect that something is not right and unfair. I see a scandal,” said Firman as quoted by Kompas.com

Related to the development, Demokrat Party's board of executives is ready to hold a meeting to decide Anas status in the party. Ikhsan Modjo, Demokrat Executive, stated that there will be a meeting in the party office, which will be attended by the daily and main board members.

Demokrat Party was under pressure following its party chairman suspect status. Sports center cases have dragged several Demokrat executives, including Nazaruddin and Angelina Sondakh. Andi Mallarangeng, former minister of sports and youth affairs, who is also politician from the party, has earlier been named suspect in the Hambalang case. ( indra@theindonesiatoday.com)

 

 

 

 

 

 

 

 

Nazaruddin: Anas dan Andi Otak Korupsi Hambalang

16 Oktober 2012

 

 

 

 

 


KPK leaves Anas in limbo
Hans Nicholas Jong and Sita W. Dewi,
February 09 2013, 9:36 AM

Despite a variety of incriminating testimony, the Corruption Eradication Commission (KPK) said on Friday that Democratic Party chairman Anas Urbaningrum had not been charged with graft.
The KPK was forced to rebuff rumors that Anas had been named a suspect in a multi billion rupiah corruption case surrounding the construction of the Hambalang sports complex.

KPK spokesman Johan Budi told a press conference on Friday that any information from anywhere but the mouths of KPK officials should be taken with a pinch of salt. “As long as there is no official statement [from the KPK], then it is still a rumor,” the spokesman said.
The antigraft commission had not even imposed a travel ban on him, Johan added.
KPK chairman Abraham Samad said the KPK officials still had to discuss matters related to the case before declaring Anas a suspect. “There are still a lot of things that have to be discussed,” he said

When asked if the KPK had prepared an investigation letter for Anas but had yet to sign it, Abraham refused to answer the question directly, and instead just replied with a laugh and a nod.
Rumors that Anas had being officially declared a graft suspect emerged after Democratic Party chief patron Susilo Bambang Yudhoyono asked the KPK to decide immediately if Anas was involved in the Hambalang graft case.

Anas’ political rivals within the party claimed that his involvement in graft had caused the party’s electability rate to fall and called for his ouster. The party, however, can only unseat Anas if he is officially named a criminal suspect.
On Friday morning, before the KPK held a press conference to snub the rumors surrounding Anas, an investigator with the KPK who declined to be named, said the Democratic Party chairman had in fact been named a suspect. “Yes, [Anas] has been named a suspect,” the source said in a text message to The Jakarta Post. His statement fueled the rumors and later triggered allegations that political interests had interfered with the KPK investigation.

Abraham was quick to dismiss the allegations, saying that the antigraft body served no political interests, including those of the president.
Likewise, KPK spokesperson Johan stressed that the commission could not name someone a suspect just because the president urged the antigraft body to do so, adding that the commission’s domain was the law, not politics.

The Hambalang case centers on financial misappropriation related to the construction of the Rp 1.17 trillion (US$120.72 million) Hambalang sports complex in Bogor, West Java.
Muhammad Nazaruddin, the former Democratic Party treasurer who was indicted for his role in the case, has repeatedly accused Anas of illicitly using up to Rp 100 billion from the project’s budget to finance his bid for the party chairmanship in 2010.

Anas’ name has also surfaced in the testimony of other witnesses in the case.
Ismiyati Saidi, the chairwoman of the Democratic Party’s Gorontalo branch, for example, testified during Nazaruddin’s trial at the Jakarta Corruption Court that she and several other local party leaders received Rp 15 million ($1,635) in return for their votes in favor of Anas at the 2010 national congress in Bandung, West Java.

Democratic Party lawmaker Ignatius Mulyono, a member of the House of Representatives’ Commission II which oversees the National Land Agency (BPN), meanwhile, claimed that he received orders to secure the land-use certificate for the Hambalang project from Anas.

Anas, however, has vehemently denied the accusations, going as far as to declare that he was ready to face the death penalty if he was proven guilty of corruption.
“If I am [proven] corrupt in the athlete’s village and Hambalang graft cases, even if it’s for only Rp 1, I am willing to be shot dead or hung at Monas [National Monument]. But what about the people who make slanderous accusations?” Anas said via his Twitter account in March last year.

 

 

 


Yudhoyono needs Anas to save Dems

Margareth S. Aritonang,
December 20 2012, 9:00 AM

Democratic Party chief patron President Susilo Bambang Yudhoyono is relying on party chairman Anas Urbaningrum to unite the party until the 2014 general elections, and he will do whatever it takes to retain Anas in his post despite the graft allegations leveled against him, analysts say.

Syamsuddin Haris of the Indonesian Institute of Sciences (LIPI) said Yudhoyono had no option but to back Anas’ leadership for the sake of the party’s future.

 

 

“Although there is apparent tension between Yudhoyono and Anas, the President has to support Anas as he is party chairman, the formal leader of the group. SBY has no other option because his close confidant, Andi Mallarangeng, has been named a suspect in the Hambalang scandal,” Syamsuddin said.

Yudhoyono, however, would only support Anas until the Corruption Eradication Commission (KPK) decided his fate, he added.
“SBY needs Anas to consolidate the party ahead of the 2014 elections and he will support Anas only while the KPK does not name him a suspect,” he added.
Syamsuddin warned of the increasingly apparent tension between Yudhoyono and Anas, with the latter trying to control the party’s local leadership. “This will make it hard for the party to finish even second in the 2014 general elections,” he said.

Other analysts have said that it would take substantial effort to wrest Anas from his post as he remained in strong control of the party.

“Anas remains powerful within the party. He is probably holding a trump card on corruption cases that may implicate
other senior figures in the party,” said Hamdi Muluk, political analyst with the University of Indonesia (UI).


Anas and former youth and sports minister Andi Mallarangeng have repeatedly been named by former Democratic Party treasurer Muhammad Nazaruddin as accepting bribery money from the budget for the Hambalang sports complex in West Java.
Nazaruddin accused Anas of accepting Rp 50 billion (US$5.18 million) to finance his bid for the party chairmanship in 2010, in which he ran against Andi.

Anas won the chairmanship even though Andi was backed by Yudhoyono’s son, Edhie Baskoro “Ibas” Yudhoyono. After his win, Anas shrewdly appointed Ibas as the party’s secretary-general.
Anas stated in March that he was ready to face a firing squad or be hanged at the National Monument if he was found guilty of corruption.

According to a recent survey by the NGO, Founding Fathers House, Anas was considered the country’s most-loathed politician of 2012 as his name appeared almost daily in national newspapers alongside graft allegations.
Many have suggested that Yudhoyono could at least suspend Anas from the party chairmanship to reassure the public about the party’s commitment to fighting corruption.
Hamdi, however, said that Yudhoyono was reluctant to do that as he was concerned about Anas going rogue.

“SBY is now in a difficult position. He is worried that Anas will launch an attack against him.”

 

 

 

 

 

Indonesian official resigns over corruption inquiry
By Emily Alpert
December 7, 2012, 3:32 p.m.

When he was reelected president of Indonesia three years ago, Susilo Bambang Yudhoyono vowed to combat corruption. Now a landmark corruption investigation threatens to tarnish his own political party, as his former presidential spokesman steps down over allegations of graft.

Youth and Sports Minister Andi Alfian Mallarangeng stepped down Friday after being named a suspect in an investigation centering on the construction of a $122-million sports complex in West Java, according to news reports.
He was the first sitting Cabinet member to be targeted in the inquiry and the first ever named by the Corruption Eradication Commission, which was launched nearly a decade ago.

Corruption investigators have sought to ban the minister from traveling abroad. Though Mallarangeng told reporters he was innocent and was resigning only to prevent the case from getting in the way of government business, the news is nonetheless an embarrassment for Yudhoyono, who used to rely on Mallarangeng as his spokesman.

Elections are more than a year and a half away, in mid-2014, but the court case could drag into election season, the Jakarta Post reported.
Mallarangeng stepped down the same day that the head of the United Nations Office on Drugs and Crime praised the Indonesian president for taking on corruption, lauding its national strategy to prevent and eradicate it.

Yet Indonesia ranked 118th out of 176 countries this year on the Corruption Perceptions Index created by Transparency International, lower than last year. The rankings, announced this week, are a rough measure of expert opinions of corruption in the public sector.
Other members of the ruling Democratic Party have already been targeted in other corruption cases, including former party treasurer Muhammad Nazaruddin, who was jailed this year on a bribery conviction. Under questioning, Nazaruddin reportedly implicated the party chairman and its secretary general – the president’s youngest son – on suspicion of corruption.

Earlier this week, the corruption commission also detained a top police official over allegations tied to purchasing driving simulators while he headed the police traffic division.
"This is one of a series of big blows to the party,” Indonesian Survey Institute executive director Kuskridho Ambardi told Agence France-Presse.

 

 

 

Indonesia's Sports Minister Resigns
Jakarta Globe | December 07, 2012


Indonesia's Youth and Sports Affairs Minister Andi Mallarangeng announced his resignation on Friday, a day after he was named a suspect by the country's antigraft body.

"This morning, I went to see the president to submit a resignation letter as Youth and Sports Minister," Andi told a televised press conference convened at his office on his return from the Presidential Office.

 

 

He said he provided the president, Coordinating Minister for People's Welfare Agung Laksono and the cabinet secretary an explanation about the "situation related to me."
Andi said President Susilo Bambang Yudhoyono "understood and accepted the resignation."

The outgoing minister said he has also submitted his resignation as secretary of the Democratic Party' Board of Patrons. Yudhoyono, as the chief patron of the party, had also accepted it.
Andi, who becomes the first active government minister to resign over suspicion of corruption, said the accusation and suspicion against him were hindering his work.
"I cannot possibly perform my duties as a minister effectively," he said, adding that he did not want to become a burden to the president.

However, he also maintained his innocence.
"I am certain that the many accusations that have been leveled against me are not true," Andi said, adding that he hoped that "truth and justice" would eventually prevail.

He also said that ever since he was a student, he had been vocal in calling for a clean government, and that he continued to abide by those principles.
The Corruption Eradication Commission (KPK) announced on Thursday that it had issued a travel ban for Andi who was also officially declared a suspect in the Hambalang sports center graft case.
The Supreme Audit Agency (BPK), which performed an audit on the project, said it was full of irregularities that had potentially cost the state up to Rp 243 billion in losses.

The results of the audit also showed that Andi was responsible for presiding over procedural malpractice related to his ministry’s budgeting. The minister allowed his secretary, Wafid Muharram, to sign the Hambalang procurement contract, against a government regulation requiring contracts of more than Rp 50 billion to be signed by the minister.

 

 

 

 

Editorial: Who’s next after Andi?
The Jakarta Post | Editorial | Sat, December 08 2012,

Editorial: All are implicated
The Jakarta Post | Editorial | Fri, November 02 2012,

Andi Mallarangeng: The road to resignation
The Jakarta Post, Jakarta December 08 2012

Disgraced ex-minister leaves official residence
The Jakarta Post, Jakarta December 08 2012,

Andi quits posts for SBY’s sake
Rabby Pramudatama,
The Jakarta Post, Jakarta | December 08 2012

Andi holds key on Hambalang 
The Jakarta Post,
December 09 2012, 9:49 AM

 

 

 

KPK Slaps Now-Suspect Andi With Travel Ban Over Hambalang Graft

December 06, 2012

The Corruption Eradication Commission (KPK) announced on Thursday that it had issued a travel ban for Youth and Sports Affairs Minister Andi Mallarangeng as it was revealed that he is officially a suspect in the Hambalang sports center graft case.

KPK deputy chief Bambang Widjojanto said the antigraft body sent a letter to the immigration office on Monday requesting a travel ban for three people implicated in the case.

 

 

Graft convict and former Democratic Party treasurer Muhammad Nazaruddin has accused Andi, the secretary of the party’s board of patrons, and his brother Choel of receiving Rp 20 billion from Adhi Karya in exchange for awarding the project to the company.

Bambang said the travel ban would be in place for at least
six months while the KPK investigates the case

The case has also implicated
Democratic Party chairman Anas Urbaningrum.

Anas Called On To Follow Andi’s Example
December 09, 2012

 


With Hambalang, Sports Ministry Tangled in Web of Deceit
Markus Junianto Sihaloho |

November 03, 2012

A key audit that paints Sports Ministry officials as willfully overlooking irregularities in the Hambalang sports center project vindicates what most watchdogs were already saying, but what the public summary omits tells a far more insidious tale of high-level collusion.

Muhammad Maulana, the research and development coordinator at the Indonesian Forum for Budget Transparency (Fitra), said on Friday that the more substantial findings from the Supreme Audit Agency (BPK) probe were not brought to light in the summarized report that was released on Wednesday.

“The actual contents of the audit findings and the summarized report don’t support one another,” he said.
“This is reflected in the [omission from the public summary] of how the budgeting for the project was prepared.”

The BPK’s report concluded that the project, budgeted at Rp 2.5 trillion ($260 million), caused Rp 243 billion in state losses. It attributed the losses to problems in acquiring the land for the sports center, irregularities in the Sports Ministry’s application for multi-year financing, and the appointment of contractors.
The BPK also highlighted problems in the way the Finance Ministry released the funding for the project and in the way the contractors worked.

But the more compelling story, Fitra says, is in how the Sports Ministry colluded with contractors to jack up the total cost of the project more than eight-fold, from the initial budget of Rp 300 billion.

Fudging the numbers
The full audit notes that in early 2009, the ministry, under Adhyaksa Dault, requested funding of Rp 125 billion from the state budget for the Hambalang project, in line with the minister’s projection of a total cost of Rp 300 billion.

In August that year, however, ministry secretary Wafid Muharam inexplicably ordered the entire project cost to be re-evaluated, without Adhyaksa’s knowledge.
For that task, he enlisted the help of Lisa Lukitawati, director of CV Rifa Medika, a distributor of health care training equipment, on the basis that she had previously helped draw up the budget for the Rp 1.7 trillion Sentul circuit in Bogor.

Wafid also called in I.N. and S.A., the director and his assistant from another contractor, identified only as PT BIE, to work on the budget for the construction.
Deddy Kusdinar, who was the head of the ministry’s planning department at the time, and Wiyanto Soeharjo, the secretary of the ministry’s High Performance Program (PAL), were tasked with calculating the budget for the equipment that would be needed.
The team then came up with a cost of Rp 1.7 trillion, comprising Rp 800 billion for the construction of the sports center and Rp 900 billion for the equipment.
They presented their revised cost estimates in October 2009 to Andi Mallarangeng, who had just replaced Adhyaksa as the sports minister.

Andi reportedly called for the project to be far bigger in scale than his predecessor had envisioned. Following this meeting, Wafid ordered Lisa and her team to manipulate the numbers so that the construction costs would come out to Rp 1.2 trillion, and the equipment cost Rp 1.3 trillion.
The BPK cites an exchange of e-mails between Lisa, S.A. and Alman Hudri, head of the ministry’s sports facilities department, discussing ways to mark up the cost to Rp 2.54 trillion spread out between 2010 and 2014.
In an email sent on Oct. 26, 2009, S.A. explained to Lisa and Alman that he could only fudge the figures to a maximum of Rp 2.17 trillion.

He said that if he went any higher, it would raise suspicions. He also pointed out that the desired cost they were after was too high to comply with a 2007 Public Works Ministry regulation on government construction standards.
The BPK notes that beginning in January 2010, S.A. was no longer involved in the project, although it does not explain why.

When Alman and Lisa proposed S.A.’s lower figure to Wafid, the ministry secretary insisted that they keep trying to come up with Rp 2.5 trillion, the audit alleges.
In the e-mail exchange, Wafid also revealed that he had never brought up the project cost re-evaluation with Adhyaksa while the latter was still minister.

But with Andi’s alleged complicity in attempting to raise the cost of the project, the team led by Wafid and Lisa went on to devise a total budget of Rp 2.575 trillion, comprising Rp 1.175 trillion for the construction and Rp 1.4 trillion for the equipment.
This new budget estimate was then used by the Sports Ministry to revise the whole scope of the original Hambalang project and to seek multi-year funding from the Finance Ministry.

Nazaruddin link
With the marked-up budget in place by January 2010, the ministry officials went on to establish another team to work on the new planning and design for the Hambalang sports center.
Wafid, Lisa, Deddy and Wiyanto were joined by Muhaimin, the assistant deputy for sports facilities, as well as Muhammad Arifin, a commissioner at construction and engineering consulting firm Metaphora Solusi Global.

Others enlisted by the ministry included A.D.K. from Duta Graha Indah, a shell company linked to former Democratic Party treasurer Muhammad Nazaruddin.
Nazaruddin was convicted earlier this year of bid-rigging in another Sports Ministry project. Wafid is also serving time in the same case.

The final design for the Hambalang sports center was eventually drawn up by the Duta Graha and Metaphora officials.
Fitra’s Maulana questioned the legality of the Sports Ministry bringing in private consultants for such a project.
The usual procedure, he said, was for the consulting team to comprise officials from within the ministry, who would oversee the project through to completion.
“There has never been a mechanism allowing outside private parties to get involved,” he said.

Massive profits
Another glaring irregularity that the full BPK report found, but which the agency omitted from its public summary, was the exceedingly high level of profiteering among the winning contractors.
The main contracting work was won by a joint bid between state construction firms Adhi Karya and Wijaya Karya, who were awarded Rp 129 billion for one of the work packets. But the contractors palmed the work off onto subcontractors for Rp 78 billion, thereby pocketing Rp 51 billion.

The money train did not stop there, the audit says. Adhi Karya and Wijaya Karya also subcontracted the work to supply equipment for the facility.
They paid one subcontractor, identified only as PT DC, Rp 113 billion. That company was found to have farmed out its contract to 14 smaller firms for just Rp 28 billion, earning an easy Rp 85 billion.

 

Fire Andi Mallarangeng, ICW Advises Yudhoyono
Arientha Primanita | November 03, 2012

Indonesia Corruption Watch is urging the president to oust Sports and Youth Affairs Minister Andi Mallarangeng in light of a report from the Supreme Audit Agency that pointed to the minister’s negligence, if not complicity, in corruption related to the Hambalang sports complex in Bogor.

“SBY [Susilo Bambang Yudhoyono] should take action by seriously warning him, firing him or asking him to step down,” ICW researcher Emerson Yuntho said in a discussion on Saturday.

The results of an audit by the Supreme Audit Agency (BPK) show that Andi was responsible for presiding over procedural malpractice related to his ministry’s budgeting. The minister allowed his secretary, Wafid Muharram, to sign the Hambalang procurement contract, against a government regulation requiring contracts of more than Rp 50 billion ($5.2 million) to be signed by the minister.
Because of Andi’s negligence, BPK estimated state losses from the project at Rp 243 billion.

Emerson said that besides the Hambalang case, Andi should also be held responsible for separate corruption scandals surrounding the construction of an athletes’ village for the Southeast Asian Games and preparations for the National Games (PON).
A political analyst from the Indonesian Survey Institute (LSI), Burhanuddin Muhtadi, said if Yudhoyono did not take serious action, it would affect the president and his Democratic Party.
“SBY doesn’t have the courage to take extraordinary and progressive actions,” Burhanuddin said. “He’s waiting for certainty [legal action] from KPK. If Andi’s status is only witness, I’m sure SBY will not oust him.”

Burhanuddin said that without radical action from the president, Yudhoyono and his increasingly unpopular ruling party might face strong headwinds in the 2014 legislative and presidential elections.

 

 

 

 

Indonesia Facing the Future: Challenges for the Next 20 Years
- Prabowo Subianto -

 

 

 

 

HAMBALANG PROJECT

May 29, 2012

 

Sports Minister Allegedly Behind Hambalang Price Climb: Official Claims
A mid-level official with the State Ministry for Youth and Sports Affairs placed the blame on minister Andi Mallarangeng for the graft-laden Hambalang sports center construction project after being questioned by the Corruption Eradication Commission (KPK) on Monday.

Deddy Kusnidar, a finance and internal affairs chief for the ministry, was interrogated by KPK investigators after being named a graft suspect. Deddy told reporters after leaving the antigraft body’s office that Andi allegedly changed the project’s master plan, causing construction costs to balloon from Rp 125 billion ($13 million) to Rp 2.5 trillion.

 

 

Minister of Sports
Andi Mallarangeng

October 12, 2011


Interrogated by KPK (Commission for Corruption Eradication),
Nazaruddin states Sports Minister Andi Mallarangeng's
involvement in the SEA Games corruption case.
The Minister has denied the accusation.

 

He also mentioned the names of the ruling Partai Demokrat leadership,
Anas Urbaningrum, Jafar Hafsah, Angelina Sondakh dan Mirwan Amir.

Partai Demokrat Chairman
Anas Urbaningrum



Jafar Hafsah



Angelina Sondakh

Mirwan Amir

 

 


Ex Ambassador for Colombia
Michael Mananfandu

During interrogations he accused then Indonesian Ambassador for Colombia,
Michael Manafandu of having been paid a bribery of Rupiahs One Trillion
(approx US$ 111,100) to remove evidence from his bag, flash discs and CD's

At the time of his arrest in Colombia, Nazaruddin's bag was seized by officials and surrendered to Manufandu. However, when the KPK obtained the bag Nazaruddin said several items containing important evidence were missing.

Nazaruddin said four cellular were also missing from the bag.
The phones contained records of conversations with top officials concerning the
SEA Games construction project graft case, he stated.


The Ambassador has since retired.

 

 

 

 

 

 


With a House Costing Us 5-Star Prices, Will Indonesia Get 5-Star Laws?
Ulma Haryanto & Anita Rachman | January 30, 2012


Chairs imported from Germany worth Rp23 million each?
are one budget line item among many that
have riled critics recently as lawmakers have made
purchases of questionable public value.
Antara Photo/Andika Wahyu

Two images that emerged over the past few weeks help explain the depth of public outrage directed at the government over its perceived excessive and misdirected spending.
On one hand, there were the photos of the dilapidated suspension bridge in Lebak, Banten, being used by elementary school students. Only after it caught international attention did the local government allocate Rp 1 billion ($112,000) to build a new one.
On the other hand, there was the meeting room of the House of Representatives Budget Committee — now at the center of several graft allegations — renovated for a staggering Rp 20 billion.

Arwani Thomafi, a member of the House’s Household Affairs Committee (BURT), argues that the two shouldn’t be compared because the bridge was dilapidated not due to government neglect, but because of a natural disaster.
But he acknowledged that lawmakers had to pay more attention to the budget proposals from the House secretary general.

“We should only prioritize projects that we urgently need. We, including House speakers, have to learn to be more selective,” he said, adding that lawmakers should also be more sensitive toward the concerns of their constituents.
Insensitive, excessive
Still, some critics say the issue is not a question of priorities. Instead, they say displayed sheer excessiveness.

Eva Kusuma Sundari, a lawmaker from the opposition Indonesian Democratic Party of Struggle (PDI-P), said she was not surprised that her colleagues sought such lavish treatment.
“People elected celebrities and businesspeople as their representatives. Of course, you can’t expect them to pretend to be beggars,” Eva said sarcastically.

A breakdown of the House’s 2012 budget acquired by the Jakarta Globe shows that aside from the Rp 20.3 billion room renovation, it also allocated Rp 1.6 billion for air freshener and Rp 879.8 million for a filing cabinet for the House secretary general.

Prominent architect Bambang Eryudhawan chuckled when he heard the numbers.
“It certainly must stink at the House of Representatives building if they need that much air freshener,” he said.

The architect also questioned the type of filing cabinet purchased, as he speculated that the allocation could buy a fire-proof one big enough to fill a 150-square-meter room, complete with a sophisticated archiving system.

At Rp 20.3 billion, the total renovation cost for the Budget Committee meeting room comes out to about Rp 203 million per square meter, which Bambang says is almost 20 times the cost of renovating a five-star hotel suite.
“The renovation cost for a five-star area is usually pegged at about Rp 10 million per square meter, furnishing included,” Bambang said.
The chairs alone for the Budget Committee room were reportedly imported from Germany at Rp 23 million apiece — they ordered 85 — almost half the cost of the US presidential chair at the White House in Washington.
“I think it’s a matter of perspective. People see lawmakers as public servants, but lawmakers see themselves as kings,” Bambang said.

Photo Indonesia-Digest


Beyond DPR
The tendency to spend lavishly seems to be a problem not just for the national legislature.
The Jakarta City Council has also confirmed that its 2012 budget includes Rp 180 billion allocated to renovate its own offices.
As much as Rp 80 billion of this is allotted to repair the outer walls and install marble surfaces on some interior walls. The remaining Rp 100 billion will be used to build a bridge linking the building to a neighboring one.

The Indonesian Forum for Budget Transparency (Fitra) has also criticized renovation projects at the Presidential Palace.
Uchok Sky Khadafi, the coordinator for Fitra, said that the allotment for the palace this year soared to Rp 80.5 billion, almost 10 times what it was in 2011, with funds for presidential building improvement accounting for Rp 10.7 billion.

Photo Indonesia-Digest

In addition, no less than Rp 58.6 billion was set aside for new construction or expansion of the
State Secretariat’s office
, housing and other structures. This includes Rp 349 million to repair the office complex gate and Rp 12.3 billion for the office’s parking lot. The State Secretariat, though, denied this. The parking lot construction was not Rp 12.3 billion, said the spokesman for the office, Sugiri, but only Rp 10.6 billion.

“This is an amount proposed by [private] consultant Cipta Karya and contractor Adhicon Persada. It already includes the consulting service fees,” he said. He added that the amount also includes the construction of a mosque, cooperative building, and a 3,270-square-meter park above the basement area.
“The parking lot is going to be built in the basement, that’s why it’s more expensive. It is going to have two levels and can accommodate 1,000 vehicles,” Sugiri said, adding that the Supreme Audit Agency (BPK) was best suited to judge the merits of the budget.

Bambang said the recent spending news was a common problem with state projects: those involved don’t consider cost efficiencies, “as if this country will never go bankrupt,” he said.
He also pointed out that a quantity surveyor, whose job it was to check available market prices and options to get the lowest prices, was often missing in state-funded projects.

Photo Indonesia-Digest


A waste of money?
Worsening the situation is a public perception that lawmakers — heavily criticized for a variety of other things ranging from laziness to blatant corruption — deserve none of these nice things.

For instance, listed in the 2012 budget is Rp 544 billion for meetings and discussions.
“This is a total waste of money,” said Uchok, whose organization revealed other controversial House expenses like the printing of about 18,000 calendars for Rp 1.3 billion.

“The budget for such meetings has swollen since these lawmakers prefer to hold their meetings outside, such as in hotels, instead of using available meeting rooms.”
This, again, raises the question of why a House meeting room was renovated at a cost several times higher than a five-star hotel.

“Looking at the level of productivity of the House, I think they only deserve three-star, at most,” Bambang joked.
House Speaker Marzuki Alie has said he is “concerned” about the situation.
“There has to be more conscientiousness [on the part of the government and lawmakers] in line with the president’s directives to reduce unnecessary expenses,” he said. “We need to [focus on] building our infrastructure to accelerate economic development.”

But as Bambang pointed out, the House still went on with its lavish spending ways despite public outcry over a proposal for a new legislative building that was ultimately canned.
“It’s like they think that we, the public, are stupid. They really have some nerve, or they’re just absurd,” Bambang added.

Eva said she hoped the public would learn from the recent spending spree.
“We have to start demanding an electoral system that is guaranteed to filter people with the right capability, capacity and integrity,”
Eva said. “Voters have to be educated, to increase public pressure toward the lawmakers to work more seriously.”

Additional reporting by Arientha Primanita

 

 

 

 

NAZARUDDIN CASE

 

 

 

Negara Mengarah Kleptokrasi
Indonesia Bisa Menjadi Negara Gagal gara-gara Korupsi

Selasa,
14 Juni 2011

Korupsi tak hanya terjadi di lembaga yudikatif, peradilan, tetapi juga ada di legislatif dan eksekutif

 

 



The Public Believes I'm Innocent: Susno

Comr. Gen. Susno Duadji presented his final defense at the South Jakarta District Court on Thursday.

(JG Photo / Afriadi Hikmal

Exclusive Susno Interview: I Was All Alone In Exposing Graft
Nivell Rayda | March 26, 2011

Comr. Gen. Susno Duadji never doubted that exposing corruption in the police force would be a lonely fight — but he did not realize just how difficult it would be.

In an exclusive interview with the Jakarta Globe after he was sentenced to three and a half years in prison on Friday, the police general revealed the blows he had suffered during the bitter battle.

Read the full interview in Saturday's Jakarta Globe newspaper.

The National Police chief of detectives said he became a virtual pariah among his former colleagues after he publicly accused fellow generals of acting as case brokers in Gayus Tambunan’s money-laundering case.

His graft claims, delivered during a House of Representatives hearing last year, was meant to shake the police’s foundations.

 

 


“I’ve always known I was alone in the battle to reform the police and punish the rogue officials within the force,” he said.

But his crusade for justice came to a grinding halt when he was arrested for accepting bribes while handling a fish-farm dispute as well as embezzling election-security funds during his stint as West Java police chief.
He dismissed the charges as attempts by some law enforcers to gag him or get back at him. But on Thursday, his denials were harder to substantiate after he was convicted for taking Rp 500 million ($57,500) in bribes and stealing Rp 8.4 billion in funds earmarked for security during the 2008 West Java gubernatorial election.

Susno said he was “saddened and infuriated” that not a single police officer supported him in his battle. Even his wife, Herawati, said former friends and officers’ wives avoided her.
As a rare bright spot during the scandal, Susno’s whistle-blowing has led to the conviction of two officers, a judge and a group of lawyers. Two prosecutors were charged with leaking top-secret prosecution dossiers.
But top officers said to be deeply involved remained untouched.

Hardened by his ordeal, Susno, once described by peers as cocky, now chooses his words carefully, avoiding controversial topics that might hurt his chance of winning his appeal.

RELATED

I’ll Fight Jail Term, Susno Vows
Heru Andriyanto | March 24, 2011

Susno Duadji Jailed for Corruption
March 24, 2011

The Public Believes I'm Innocent: Susno
Heru Andriyanto | March 10, 2011

Proceedings in the bribery trial of high-ranking police officer Comr. Gen. Susno Duadji took an unusual turn on Thursday when the defendant presented an online survey that he said showed overwhelming public support for him.

No Foul Play in Death of Susno Witness: Police
Farouk Arnaz | March 10, 2011
The National Police has ruled out foul play in the death of a former bodyguard and defense witness for Comr. Gen. Susno Duadji —
the second witness in the case to perish in a vehicular accident

 

Indonesian President Says War on Graft Far From Won
Camelia Pasandaran & Nivell Rayda |
December 02, 2010

Jakarta. President Susilo Bambang Yudhoyono said on Wednesday that although progress had been made in the fight against corruption, it was not enough and more aggressive efforts were needed to rid the country of graft.

Speaking at a national conference on corruption, Yudhoyono cited surveys by Transparency International that found Indonesia’s Corruption Perception Index had improved to 2.8 in 2010 from just 2 in 2004 — with 0 being the most corrupt and 10 the least.
“The 2.8 is an increase and the highest achievement in Indonesian history — but you and I, we’re not satisfied,” he said.

Indonesia Corruption Watch’s deputy coordinator, Adnan Topan Husodo, said the increase, which he called minor, was a dismal result from Yudhoyono’s six years in office.
“Rising from 2 to 2.8 over the course of six years is not an achievement,” he said. “At this rate, when will Indonesia be free from graft?”
In addition to corruption by regional heads, Yudhoyono said graft at institutions managing large budgets for procurements was also still high, mainly because of illegal markups. Another problem, he added, was tax-related corruption.

“We should also prevent and eradicate corruption in law-enforcement institutions,” the president said. “If we want to clean a dirty floor, we should make sure that our broom is clean.”
Yudhoyono also called on the customs and tax offices, and big state enterprises that contributed significantly to the state coffers, to redouble their corruption-eradication efforts.
“I warn you once again, maintain your integrity and restrain yourself from committing corruption,” he said.
New efforts are needed to stamp out corruption once and for all, he said, including regulations to limit the opportunities for people to engage in graft.
“We should ensure that the regulations and the monitoring systems become more effective,” he said. “We need to close all the loopholes that could be abused by people to violate the law.”

ICW’s Adnan, meanwhile, said the president needed to take radical measures to restructure some government agencies from top to bottom.
“So far, bureaucratic reform at public offices has only involved better remuneration, without any improvement to the corruption-prone system,” he said.
Adnan said the Corruption Eradication Commission (KPK) also needed be strengthened, and more powers given to government watchdogs like the National Police Commission.

Hasril Hertanto, a legal expert at the University of Indonesia, said Yudhoyono already had all the tools he needed to effectively combat corruption.
“Now is the time to establish the proper mechanisms so that civil society and the public at large can make use of the law to monitor the government’s spending and performance based on the spirit of transparency and accountability,” he said.

Utama Kajo, head of public policy at the Indonesian Chamber of Commerce and Industry (Kadin), said corruption was the biggest problem facing the nation.
“With rampant corruption, Indonesia still managed to get 5 percent annual economic growth — imagine if it was free from corruption,” he said.
“Employers would gladly raise wages if only their income was not eaten up by illegal fees. We’d gladly make our products more affordable if only competitors didn’t bribe their way to securing government projects or permits.”

 


US offers hand to fight graft

The Jakarta Post | Tue, 11/30/2010 12:04 PM | National A | A | A |
JAKARTA: The United States said it wanted to help Indonesia fight corruption by providing training courses for Corruption Eradication Commission (KPK) staff and investigators, a top diplomat says.

US ambassador to Indonesia Scot Marciel was reported by Antara news agency on Monday as quoting President Barack Obama, who during his recent visit to Jakarta said his country wanted to assist Indonesia in fighting graft.

The training will be focused on enhancing investigation methods and the use of technology, he said, adding that there was no talk of cooperation in the handling of ongoing graft cases.

The training would also provide the staff with new insights on handling money laundering cases and the use of new wiretapping technology, KPK deputy chairman M. Jasin said.

“Corrupters are very dynamic,” he said, adding that the KPK needed to adjust to new technologies. — JP

 

 

 

 

 



The Public Believes I'm Innocent: Susno

Comr. Gen. Susno Duadji presented his final defense at the South Jakarta District Court on Thursday.

(JG Photo / Afriadi Hikmal

Exclusive Susno Interview: I Was All Alone In Exposing Graft
Nivell Rayda | March 26, 2011

Comr. Gen. Susno Duadji never doubted that exposing corruption in the police force would be a lonely fight — but he did not realize just how difficult it would be.

In an exclusive interview with the Jakarta Globe after he was sentenced to three and a half years in prison on Friday, the police general revealed the blows he had suffered during the bitter battle.

Read the full interview in Saturday's Jakarta Globe newspaper.

The National Police chief of detectives said he became a virtual pariah among his former colleagues after he publicly accused fellow generals of acting as case brokers in Gayus Tambunan’s money-laundering case.

His graft claims, delivered during a House of Representatives hearing last year, was meant to shake the police’s foundations.

 

 


“I’ve always known I was alone in the battle to reform the police and punish the rogue officials within the force,” he said.

But his crusade for justice came to a grinding halt when he was arrested for accepting bribes while handling a fish-farm dispute as well as embezzling election-security funds during his stint as West Java police chief.
He dismissed the charges as attempts by some law enforcers to gag him or get back at him. But on Thursday, his denials were harder to substantiate after he was convicted for taking Rp 500 million ($57,500) in bribes and stealing Rp 8.4 billion in funds earmarked for security during the 2008 West Java gubernatorial election.

Susno said he was “saddened and infuriated” that not a single police officer supported him in his battle. Even his wife, Herawati, said former friends and officers’ wives avoided her.
As a rare bright spot during the scandal, Susno’s whistle-blowing has led to the conviction of two officers, a judge and a group of lawyers. Two prosecutors were charged with leaking top-secret prosecution dossiers.
But top officers said to be deeply involved remained untouched.

Hardened by his ordeal, Susno, once described by peers as cocky, now chooses his words carefully, avoiding controversial topics that might hurt his chance of winning his appeal.

RELATED

I’ll Fight Jail Term, Susno Vows
Heru Andriyanto | March 24, 2011

Susno Duadji Jailed for Corruption
March 24, 2011

The Public Believes I'm Innocent: Susno
Heru Andriyanto | March 10, 2011

Proceedings in the bribery trial of high-ranking police officer Comr. Gen. Susno Duadji took an unusual turn on Thursday when the defendant presented an online survey that he said showed overwhelming public support for him.

No Foul Play in Death of Susno Witness: Police
Farouk Arnaz | March 10, 2011
The National Police has ruled out foul play in the death of a former bodyguard and defense witness for Comr. Gen. Susno Duadji —
the second witness in the case to perish in a vehicular accident

 

Indonesian President Says War on Graft Far From Won
Camelia Pasandaran & Nivell Rayda |
December 02, 2010

Jakarta. President Susilo Bambang Yudhoyono said on Wednesday that although progress had been made in the fight against corruption, it was not enough and more aggressive efforts were needed to rid the country of graft.

Speaking at a national conference on corruption, Yudhoyono cited surveys by Transparency International that found Indonesia’s Corruption Perception Index had improved to 2.8 in 2010 from just 2 in 2004 — with 0 being the most corrupt and 10 the least.
“The 2.8 is an increase and the highest achievement in Indonesian history — but you and I, we’re not satisfied,” he said.

Indonesia Corruption Watch’s deputy coordinator, Adnan Topan Husodo, said the increase, which he called minor, was a dismal result from Yudhoyono’s six years in office.
“Rising from 2 to 2.8 over the course of six years is not an achievement,” he said. “At this rate, when will Indonesia be free from graft?”
In addition to corruption by regional heads, Yudhoyono said graft at institutions managing large budgets for procurements was also still high, mainly because of illegal markups. Another problem, he added, was tax-related corruption.

“We should also prevent and eradicate corruption in law-enforcement institutions,” the president said. “If we want to clean a dirty floor, we should make sure that our broom is clean.”
Yudhoyono also called on the customs and tax offices, and big state enterprises that contributed significantly to the state coffers, to redouble their corruption-eradication efforts.
“I warn you once again, maintain your integrity and restrain yourself from committing corruption,” he said.
New efforts are needed to stamp out corruption once and for all, he said, including regulations to limit the opportunities for people to engage in graft.
“We should ensure that the regulations and the monitoring systems become more effective,” he said. “We need to close all the loopholes that could be abused by people to violate the law.”

ICW’s Adnan, meanwhile, said the president needed to take radical measures to restructure some government agencies from top to bottom.
“So far, bureaucratic reform at public offices has only involved better remuneration, without any improvement to the corruption-prone system,” he said.
Adnan said the Corruption Eradication Commission (KPK) also needed be strengthened, and more powers given to government watchdogs like the National Police Commission.

Hasril Hertanto, a legal expert at the University of Indonesia, said Yudhoyono already had all the tools he needed to effectively combat corruption.
“Now is the time to establish the proper mechanisms so that civil society and the public at large can make use of the law to monitor the government’s spending and performance based on the spirit of transparency and accountability,” he said.

Utama Kajo, head of public policy at the Indonesian Chamber of Commerce and Industry (Kadin), said corruption was the biggest problem facing the nation.
“With rampant corruption, Indonesia still managed to get 5 percent annual economic growth — imagine if it was free from corruption,” he said.
“Employers would gladly raise wages if only their income was not eaten up by illegal fees. We’d gladly make our products more affordable if only competitors didn’t bribe their way to securing government projects or permits.”

 


US offers hand to fight graft

The Jakarta Post | Tue, 11/30/2010 12:04 PM | National A | A | A |
JAKARTA: The United States said it wanted to help Indonesia fight corruption by providing training courses for Corruption Eradication Commission (KPK) staff and investigators, a top diplomat says.

US ambassador to Indonesia Scot Marciel was reported by Antara news agency on Monday as quoting President Barack Obama, who during his recent visit to Jakarta said his country wanted to assist Indonesia in fighting graft.

The training will be focused on enhancing investigation methods and the use of technology, he said, adding that there was no talk of cooperation in the handling of ongoing graft cases.

The training would also provide the staff with new insights on handling money laundering cases and the use of new wiretapping technology, KPK deputy chairman M. Jasin said.

“Corrupters are very dynamic,” he said, adding that the KPK needed to adjust to new technologies. — JP

 

 

 

 

 

 

 

 

 CORRUPTION

 

 

 

Corruption and the Partners in Corruption

Corruption is a persistent huge problem in Indonesia.

Corruption eradication, establishing and upholding ethical business standards is a difficult process.
Corruption is deep-rooted and became an accepted culture in the developing society craving power and wealth starting with the foreign asisitance and investment influx in the 1970's..

Corruption is a 2-way street with a giving and a receiving end. In the development years the foreign corporations were the givers, the Indonesia power elite the receivers. In their strive to conquer favorable infrastructural, industrial and mining concessions deep-pocketed foreign corporations did not hesitate to pay bribes to the power elite. It continued over the 30 years in the Suharto period and created an in-bred culture of corruption and wealth spread deeply into several layers of the reigning government.

It will be a long and difficult process to eradicate this deep-rooted problem, but Indonesia has started the process.
The government has started the fight against corruption, a process vital to ensure responsible development of the country.

However huge the problem, eradication is a must if this country, so rich of resources, wants to achieve its economic development objectives and increase lving standards for all.

Sadly, the elite status of wealth and related power created by those corruption practices took deep roots in the Indonesian business world and made it a standard modus operandi in business practices.. A culture of corruption in business dealings has been fostered since the late 1960s. Indonesia has started an attempt at eradication, especially internal corruption practices.

But what about the other side of the problem, the partners in corruption, the foreign corporate investors?
Are they also working to correct the problem? Time will tell. Let us just wait and see.

Meanwhile, for foreign investments and transactions, it would be helpful if the media also starts delving into the practices of the partners in corruption and not focus on the Indonesian side only.

 

 

Sri Mulyani Indrawati, the former Indonesian finance minister
and now a World Bank managing director, speaking at the
International Anti-Corruption Conference in Bangkok on Wednesday.

(JG Photo/Angela Dewan)

Sri Mulyani Denounces Indonesian Corruption From World Bank Post
Angela Dewan | November 11, 2010

Bangkok. From her prestigious new position as a World Bank managing director, Sri Mulyani Indrawati has taken another stab at old enemies, without naming names, an art she mastered after her ousting as Indonesia’s finance minister in May.
“Corruption remains intertwined with politics, and there are brazen attacks on those fighting corruption,” she said at the 14th International Anti-Corruption Conference in Bangkok on Wednesday.

Sri Mulyani’s comments echo those she made in May, when she said particular forces were “hijacking” economic reform in Indonesia — comments believed to be directed at business tycoon and Golkar Party chairman Aburizal Bakrie, who opposed many of her reformist policies.
Having lost her post as finance minister after a House of Representatives special committee found her Rp 6.7 trillion ($757 million) bailout of Bank Century in 2008 was illegal, Sri Mulyani appears to be enjoying the extra leg room she has been granted at the World Bank, delivering a frank speech on corruption, pointing to Indonesia without hesitation.

“Sometimes corruption comes in the form of counterfeit drugs, so people don’t get better, or they die,” she said.
“Sometimes corruption is a building that collapses in the face of a natural disaster, because the quality inspector took a payment from the construction contractor to falsify an inspection. Corruption can kill.”

She listed the World Bank’s achievements in improving transparency and fighting corruption, including the six-year disbarment of publisher Macmillan for paying a bribe to try and win a World Bank contract in Africa.
She proved confident in her position when an audience member accused her of touting her personal views rather than those of the institution.
“My own personal ethical values and the bank’s ethical values should match,” she said.
“In this case, I’m not going to entertain that I have my own personal values that are distant from the bank’s. If the bank had a policy that did not reflect the view of anticorruption or good governance, it is the job of the management, including myself, to correct it.”

While Sri Mulyani has reason enough to distrust the Indonesian government’s commitment to tackling corruption, she remains optimistic that progress has been made since 15 years ago, when “the C-word was barely whispered, if at all mentioned.”
“Corruption is an issue we know politicians can’t ignore now in Indonesia, and the KPK, our anticorruption commission, has made huge progress, despite the difficulties they are facing,” she said.

Sri Mulyani’s continued commentary on corruption and politics in Indonesia has observers speculating that she may be planning a return to politics and even a run for president in 2014.

But she said, “I am just concentrating on my role at the World Bank at the moment.
“Of course, the World Bank has many projects in Indonesia, just like in other countries, so it can help Indonesia achieve its national development goals.”

Speculation about Sri Mulyani’s possible return to politics was sparked when the Alliance for Democracy Education launched a Web site in her honor last month.
It carried a picture of Sri Mulyani along with the slogan “I’ll Be Back,” but the NGO says the site was only created to improve public awareness of ethics.

The United Development Party (PPP) has already said it would support Sri Mulyani should she run for president, and if she ends up going head-to-head with Bakrie, she will likely find international support from investors.
But Sri Mulyani has given no clue about whether she wants to return to Indonesia or keep working on a global scale.

 

 

 

Snapshot of the Indonesia Country Profile


Indonesia has witnessed some economic growth in recent years, mainly on the basis of booming private investment and consumption. Foreign investment is on the rise in Indonesia, and there are significant improvements to be seen with regard to the general investment climate. Despite the deregulation process being successfully implemented, investors still point at corruption, red tape and an uncertain legal environment as the main challenges for conducting business in the country. Companies continue to be concerned about concessions based on personal relationships and demands for irregular fees to obtain government contracts, permits or licences.

Positive developments in relation to corruption and investment:

* Indonesia is trying to break a long tradition of corruption by implementing transparent and accountable governance.
* Several politicians, legislators and former ministers have been sentenced on corruption charges under the rule of current President Yudhoyono.
* There seems to be a general and strong public sentiment condemning corruption and calling for the prosecution of corrupt officials and seizure of their assets.
* Indonesia has a relatively open foreign investment regime. Recent reforms have put greater emphasis on improving the business climate, enhancing regional competitiveness, and creating a more vibrant private sector.

Risks of corruption:

* Indonesian SMEs are relatively more affected by a corrupt environment than larger companies due to their limited capacity and market power, as they report paying a larger percentage of their income in facilitation payments.
* Bribery typically occurs during licensing procedures, as the level of bribes is positively correlated to the number of business licences a company must obtain in order to comply with regulations.
* Despite improvements in recent years, tax and customs administrations in Indonesia are perceived by many in the business community as corrupt, and many regulations as onerous.
* Indonesia has a complex regulatory and legal environment that leads many foreign and domestic companies to avoid the justice system. Companies are often advised by legal experts to resolve disputes through arbitration outside Indonesia, because the judicial system operates irregularly and opaquely.

 

General Information
Political Climate

Indonesia is trying to break a long tradition of corruption by implementing transparent and accountable governance. However, the former political, administrative and business elites continue to seek influence and consolidate their position in the new democratic system through informal networks. Decades of collusion between business and government have created a relatively stable, but highly unaccountable system, which does not benefit the general population. Indonesia is ethnically and religiously heterogeneous, with great socioeconomic inequalities and large regional economic differences. Institutionally, Indonesia has a federal structure and there has been wide-ranging decentralisation over the past years. The party system and executive-legislative relations remain unstable and a strong institutional framework is absent, although improvements have been seen in recent years. Hard hit by the Asian economic crisis of 1997-1998, Indonesia has been slow to recover. Indonesia has also suffered from several natural disasters that have had large human and economic consequences, notably the tsunami in 2004. Indonesia has furthermore suffered from communal violence and terrorism.

President Yudhoyono won a landslide victory in 2004, gaining 61% of the votes based on a campaign platform focusing on economic growth and fighting corruption. In April 2009, Indonesia held its first direct legislative elections. Yudhoyono's Democratic Party came out as the winner with 21% of the votes, giving the party the right to nominate a presidential candidate on its own for the election in July 2009. In July 2009, elections President Yudhoyono won with approximately 60% of the vote in the first round, securing him re-election without a run-off. The President has stated repeatedly that eliminating corruption is one of his administration's top priorities. Even though several politicians, legislators and former ministers have been sentenced on corruption charges under his rule, Yudhoyono has been criticised for failing to net key figures from the tenure of former dictator Suharto. Nonetheless, Transparency International's Global Corruption Barometer 2009 reveals that the general public consider their government to be effective in its fight against corruption, with 74% of the respondents citing the government's efforts to fight corruption as effective and 19% as ineffective. This shows a large improvement compared to the Transparency International Global Corruption Barometer 2007, in which 47% of the respondents considered the government's efforts to fight corruption as ineffective. According to BBC News correspondents, President Yudhoyono's re-election was boosted by the corruption-free image he enjoys in the country.

Indonesia's recently democratised system, however, contains some legislative and institutional shortcomings that allow for continued corrupt practices. At the same time, many legal and institutional initiatives have been undertaken to combat corruption, although many of these measures still require effective implementation. Several reports indicate that corruption has now been decentralised to a large extent, due to policies of political and administrative decentralisation which were initiated in 2001. The institutions cited in the Transparency International Global Corruption Barometer 2009 as most corrupt are public officials, the legislature, the judicial system and political parties. There seems to be a general and strong public sentiment condemning corruption and calling for the prosecution of corrupt officials and seizure of their assets.

Business and Corruption

Indonesia has witnessed some economic growth in recent years, which accelerated to a 10 year high of 6.1% in 2008, mainly on the basis of booming private investment and consumption, as reported by the World Bank East Asia and Pacific Update 2008. Foreign investment is on the rise in Indonesia, and there are significant improvements to be seen with regard to the general investment climate. Despite the deregulation process being successfully implemented, investors still point at corruption, red tape and an uncertain legal environment as the main challenges to doing business in the country. Companies continue to be concerned about concessions based on personal relationships and demands for irregular fees to obtain government contracts, permits or licences. According to Transparency International Indonesia 2008, companies identify the judiciary and police as the two top priority institutions for the fights against corruption.

According to a national survey on corruption cited by Credit-to-Cash Advisor, 35% of the interviewed companies reported that they avoided investing in Indonesia because of widespread corruption. According to the World Bank & IFC Enterprise Surveys 2009, 14.6% of the surveyed companies expect to pay bribes to public officials to 'get things done' and 14% state that corruption is a major problem for doing business in Indonesia. In the World Economic Forum Global Competitiveness Report 2009-2010, the company executives surveyed point to corruption as one of the four areas of primary concern for doing business and identify the diversion to public funds to individuals, companies, or groups due to corruption as fairly common. In contrast, business executives report that the extent to which government officials favour well-connected companies and individuals when deciding upon policies and contracts constitutes a competitive business advantage for Indonesia. In Transparency International's Global Corruption Barometer 2009 survey, 15% of the respondents also consider the private sector to be 'extremely corrupt'. According to the World Bank Indonesian Rural Investment Assessment 2006, decentralisation has led to smaller markets and restrictions on inter-regional competition, and this has encouraged collusion and anti-competitive behaviour by companies and local governments in several regions. Nearly 50% of companies polled report local level corruption as a major business obstacle. Companies in the World Bank World Development Report 2005 state that bribes are frequently paid in business operations and indicate that the annual cost of bribes amount to 4.6% of sales. Indonesian SMEs are relatively more affected by a corrupt environment than larger companies due to their limited capacity and market power, and they report paying a larger percentage of their income in facilitation payments. Bribery typically occur during licensing procedures, as the level of bribes is positively correlated to the number of business licences a company must obtain in order to comply with regulations. Service sector companies in resource rich and urban areas pay higher amounts in bribes. More established and larger companies pay lower bribes. The financial sector regulation is reported to be effective, however, most listed companies are either family-owned or government-controlled and systems of corporate governance and auditing are well below international standards. According to the World Bank & IFC Enterprise Surveys 2009, 65% of the service companies surveyed report that they compete against unregistered or informal companies.

Many political parties rely on support from private companies and corporate donations are often associated with influence-peddling in the form of kickbacks from companies or state agencies seeking to get legislation approved. In general, companies are strongly recommended to develop, implement and strengthen integrity systems and to conduct extensive due diligence when considering to do or when already doing business in Indonesia.

Regulatory Environment

Indonesia has a relatively open foreign investment regime. Recent reforms have put greater emphasis on improving the business climate, enhancing regional competitiveness, and creating a more vibrant private sector. Moreover, public finance management has improved, and tariff barriers have been lowered, as outlined by the Heritage Foundation 2010. However, despite these improvements, institutional challenges to the business environment persist. For instance, tax and customs administrations in Indonesia are perceived by many in the business community as corrupt, and many regulations as onerous. According to the World Bank World Development Report 2005, 48% of companies indicate policy instability as a major constraint and 56% report that the interpretation of regulations is unpredictable. According to the same report, senior management can expect to spend 14.6% of its time dealing with public officials and the burden of government regulations. Nevertheless, business executives in the World Economic Forum Global Competitiveness Report 2009-2010 indicate that the level of government regulation in the country represents a competitive business advantage.

Generally, the lack of local compliance with national law and inconsistencies between local and national law is a major problem in Indonesia. In fact, according to the US Department of State 2008, laws and regulations are often vague and varying in implementation across different Indonesian regions, leading to increased business uncertainty and rent-seeking opportunities. Some regions have enacted policies and laws that accord preferential treatment to their own citizens and companies. This includes the attempt to exclude or to tax workers and companies that come from outside the region and the imposition of taxes and charges on interregional traffic, a practice which violates national law. Furthermore, the local governments have attempted to increase their own-source revenue, which has resulted in numerous new local taxes and charges. Revenues from such charges have more than doubled since 1999-2000. According to the World Bank Rural Investment Assessment 2006, these local taxes are very inefficient compared to state level taxes and have not led to improved local service delivery. Local business licences are burdensome to comply with and allow widespread possibilities for corruption, meaning that the cost of compliance is highly uncertain. State-owned companies still have primacy over private companies, and the legal and institutional capacities for supporting a market economy are still not entirely in place.

Each business sector has its own licensing rules, and the costs and time spent in company registration are relatively high. According to the World Bank & IFC Doing Business 2010, it takes 60 days and 9 procedures to start a company at a cost of 26% of GNI per capita; the minimum capital required is 59.7% of GNI per capita. Dealing with licences and permits for a standard construction project takes 160 days, 14 procedures and costs 194.8 % of income per capita on average. Companies seem to receive a relatively uniform regulatory treatment by the government, although the picture varies considerably from region to region. VAT and tax reimbursements are often delayed considerably. The government is required to reimburse companies within 60 days, but the average is reported to be around 100 days.

Reforms of the judicial system are given high priority by President Yudhoyono, but the Indonesian court system still cannot provide effective recourse to settle commercial disputes. According to the US Department of State 2008, Indonesia has a complex regulatory and legal environment that leads many foreign and domestic companies to avoid the justice system. The judicial rulings are often irregular due to corrupt and collusive practices. Local courts have in several cases accepted jurisdiction over commercial disputes despite contractual arbitration clauses calling for adjudication in foreign venues. Companies are often advised by legal experts to resolve disputes through arbitration outside Indonesia, because the judicial system operates irregularly and opaquely. For more information on dispute settlement, see the section on the judicial system under Corruption Levels. Access the Lexadin World Law Guide for a collection of legislation in Indonesia.

 

Corruption Levels

Sectors (Judicial System, Police, etc.) describe which kind of corruption can be encountered in different areas. This section covers various forms of corruption, including bribes and facilitation payments. All information is based on publicly available information and should be viewed as general guidelines on the types of corruption existing in the country.

Levels of corruption in the different sectors indicate where corruption can be encountered. The levels are defined as follows:

* Individual Corruption: Corruption that takes place primarily in relations between individual citizens and public officials and authorities.
* Business Corruption: Corruption that takes place primarily in relations between enterprises/companies and public officials and authorities.
* Political Corruption: Corruption that takes place in the higher echelons of public administration and on a political level.

Frequency refers to quantitative surveys on corruption in the respective sectors.

Judicial System

Tax Administration

Police

Customs Administration

Licences, Infrastructure and Public Utilities

Public Procurement and Contracting

Land Administration

Environment, Natural Resources and Extractive Industry

 

Judicial System

Individual Corruption
In the Transparency International Global Corruption Barometer 2009, the legal system and courts are perceived to be among the most corrupt public institutions in the country.

Indonesian citizens' low confidence in the judiciary is also evident in a 2006 survey conducted by the Partnership for Governance Reform in Indonesia, in which 80% of households state that they prefer informal means of conflict resolution over courts. Informal means of settlement include family, friends and local religious and community leaders.

A survey conducted by Transparency International in September and December 2008 found that the total sum paid in bribes to the judiciary is greater than in any other sector, including the police, as reported by Freedom House 2009.

Business Corruption
Legal uncertainty is a frequent complaint made by companies operating in the country; courts at several levels are perceived as inefficient and corrupt. This is supported by the Heritage Foundation 2010, which characterises the judicial enforcement in Indonesia as erratic and non-transparent. The Indonesian court system does not provide effective recourse for resolving commercial disputes. Legal practitioners say irregular payments and other collusive practices often influence case preparation and the judicial ruling.

Business executives do not report a high degree of confidence in Indonesia's judiciary or legal system in the World Economic Forum Global Competitiveness Report 2009-2010. According to a 2006 survey conducted by the Partnership for Governance Reform in Indonesia, two out of three companies prefer informal means of conflict resolution to the courts. The reasons stated for resorting to unofficial means are the high level of unofficial costs, corruption, incompetence, delays and lack of enforcement of court rulings. According to Transparency International Indonesia 2008, nearly a third of all business interactions with the courts involve bribery.

According to the US Department of State 2008, Indonesia has a complex regulatory and legal environment that leads many foreign and domestic companies to avoid the justice system. Laws and regulations are often vague and require substantial interpretation by implementing offices, leading to business uncertainty and rent-seeking opportunities. Moreover court cases are handled very slowly unless a bribe is paid. However, deregulation has been somewhat successful in reducing barriers and creating more transparent investment regimes.
In Indonesia, it is possible to appeal a criminal judgment and the mechanism is generally affordable for companies, although procedures can be very slow.

Political Corruption
The independence of the judiciary has improved in recent years. However, there are concerns that military, business and political interests still play a role. Bribery within the judicial service occurs when judges from lower courts give 'gifts' to their superiors in order to obtain promotions, and recruitment is also said to be influenced by bribes. There are reports of close relationships between lawyers and judges in the Supreme Courts. Buying and selling of court decisions has been reported.

Courts are to a large extent still dominated by judges from the Suharto era, and a major increase in the number of judges during the 1980s saw many incompetent judges enter office, leading to a deterioration of judicial quality. The courts are known to be under-funded and, according to some estimates, only around 30% of the institutional needs are covered by the officially allocated budget. Transparency and access to information is generally known to be low in the judicial sector and access to decisions is usually limited to the litigating parties.

Executive actions can be challenged through the Supreme Court, but in practice the judiciary is unwilling to take on politically sensitive issues. Reports indicate that except for some high profile cases, the higher echelons of the political, military and business elite are protected against criminal proceedings. The political intervention in smaller cases and discrimination in regional and national courts has decreased.

The Attorney General has been active in combating cases of graft, albeit mostly in cases of petty corruption. However, corrupt practices have been found within the Attorney General's office itself.

Tommy Suharto, son of the former Indonesian dictator, went into hiding in 2000 after receiving an 18 month sentence for corruption. While a fugitive, he paid two hit men to execute the Supreme Court judge who sentenced him. He was later sentenced 15 years in prison for the murder. However, he was released in 2006 for good behaviour.

Frequency
The World Bank & IFC: Doing Business 2010:
- To enforce a commercial contract, a company is required to go through 39 procedures, taking 570 days at a cost of 123% of the claim on average.

World Economic Forum: The Global Competitiveness Report 2009-2010:
- Business executives give the independence of the judiciary from influences of members of government, citizens, or companies a score of 3.8 on a 7-point scale (1 being 'heavily influenced' and 7 'entirely independent').

- Business executives give the efficiency of the legal framework for private companies to settle disputes and challenge the legality of government actions and/or regulations a score of 3.8 and 3.9 respectively on a 7-point scale (1 being 'extremely inefficient' and 7 'highly efficient').

The World Bank & IFC: Enterprise Surveys 2009:
- 70% of companies believe the court system is fair, impartial and uncorrupted.

- 5% of companies identify the functioning of the courts as a major business constraint.

Transparency International: Global Corruption Barometer 2009:
- Citizens perceive the judiciary to be among the most corrupt institutions in Indonesia, and 48% of the surveyed households give it a score of 5 on a 5-point scale (1 being 'not at all corrupt' and 5 'extremely corrupt').

Transparency International Indonesia: Measuring Corruption in Indonesia: Indonesia Corruption Perception Index and Bribery Index 2008:
- Companies report that 30% of all interactions with the courts involve bribery, for which the average bribe costs approximately IDR 102.5 million.

Freedom House: Freedom in the World - Indonesia 2006:
- The bribe level to achieve a favourable decision in court ranged from USD 8,300 (Bandung District Court) to USD 600,000 (Supreme Court) depending on the trial venue.

 

Public Procurement and Contracting

Business Corruption
Global Integrity 2008 describes Indonesia's public procurement framework as 'strong'. Recent regulations have improved transparency in public procurement. The licence requirement imposed on bidders has been eliminated, which has reduced possibilities for bribery. Tenders are made public in newspapers or on the Internet at the national level, although there is still a lack of transparency at local levels. Moreover, Global Integrity 2008 reports that it is sometimes difficult to access information concerning public tenders and that bribery may occur in the process of gathering information concerning procurement procedures. While business executives in the World Economic Forum Global Competitiveness Report 2009-2010 report that government officials will often favour well-connected companies and individuals when awarding contracts, Global Integrity 2008 reports that there is no mechanism to monitor the assets of procurement officials, fuelling a procurement environment that is conducive to corruption.

Although competitive bidding is mandatory, review of the decisions by unsuccessful bidders is possible, and companies that violate the regulations are officially required to be blacklisted, public procurement seems to be one of the most corruption-ridden sectors in Indonesia. Blacklisting is often circumvented through the change of company name and Global Integrity 2008 reports that investigations into alleged bribery in the procurement process rarely occur. Several cases of irregularities in public procurement were prosecuted in 2005-2006. Most were related to collusion between bidders and officials to inflate prices of bids. So-called 'collusion rings' exist in which bidders take turns winning contracts and share the profits.

For further information on public procurement, see 'Public Anti-corruption Initiatives' in the Initiatives section.

Political Corruption
Lack of access to information and multiple interpretation of legislation (especially at regional levels of governance) are cited as the primary explanations for corruption in public procurement, whereas weak law enforcement is cited as an explanation for the problems in combating corruption. The public procurement systems in most sectors still rely on the decisions of low level officials who are often more vulnerable to pressure and bribery. The lack of an effective judiciary lowers the risks of prosecution of corrupt arrangements. The government auditors often lack the resources and skills to investigate public procurement.

The Heritage Foundation 2010 reports that companies cite awarding of government contracts and concessions in Indonesia as based on personal relationships.

In March 2008, Indonesia's Anti-Corruption Court sentenced Judicial Commission member Irawady Joenoes to 8 years in prison for accepting bribes in a land procurement deal, as reported by the Jakarta Post. Global Integrity 2008 informs that Irawady was arrested by the Corruption Eradication Commission (KPK) in 2007.

In March 2009, a former official of the Manpower and Transmigration Ministry, Bahrun Effendi, was sentenced 4 years in jail for having embezzled IDR 13.7 billion in funds from procurement projects.

For further information on public procurement, see 'Public Anti-corruption Initiatives' in the Initiatives section.

Frequency
World Economic Forum: The Global Competitiveness Report 2009-2010:
- Business executives give the diversion of public funds to companies, individuals, or groups due to corruption a score of 3.6 on a 7-point scale (1 being 'very common' and 7 'never occurs').

- Business executives give the favouritism of government officials towards well-connected companies and individuals when deciding upon policies and contracts a score of 3.7 on a 7-point scale (1 being 'always show favouritism' and 7 'never show favouritism'), constituting a competitive business advantage for the country.

The World Bank & IFC: Enterprise Surveys 2006:
- 53% of the companies surveyed expected to give gifts to secure a government contract.

- The average value of a gift expected to secure a government contract is 4.03% of the contract value.

US Embassy Jakarta: Press Release, 28 September 2007:
- According to Indonesian government estimates, corruption is responsible for USD 4 billion in losses each year within the government procurement process.

 

 

By Denise Leith
Ph.D. in politics from Macquarie University, Sydney-Australia

The writer takes a close and detailed look at the a business culture anchored in corruption, collusion, and nepotism.

It is unprecedented in its investigation of the wider political context of the relationship between Jakarta and foreign capital, which to this day keeps the lucrative mining industry in Indonesia afloat.


A different political and economic scenario developed in the post-Sukarno period.
In the firm grip of powerful western countries and corporations, the IGGI, World Bank and IMF, Indonesia became heavily saddled with debts and rampant with corruption to the detriment of the country's development. IGGI donor countries provided mostly tied project aid, obligating Indonesia to spend the "aid" in the donor country , benefiting the donor country's economy and industry. To protect their interests and ensure that Indonesia remained a staunch ally, the West and their financial institutions closed their eyes to the heavily blown-up prices and rampant high-level corruption.
The West's transnationals and lending institutions, with their laws against the practice in their home states, became some of the system's beneficiaries. That is, corrupt Indonesian business practices continued not only because of the absence of internal accountability procedures for both business and bureaucracy in Indonesia, but also because of the West's indifference.

After the fall of Suharto, the World Bank acknowledged that it knew that 30 percent or more of all development funds channeled directly through the government was being siphoned off. According to a project manager for the World Bank's Jakarta office, many within the organization were able to conveniently rationalize this corruption as "a kind of tax on an otherwise sound economy.In early 1999, after the collapse of the rupiah and the regime and under pressure from the international community, the World Bank com-pleted a report on its performance in Indonesia to explain how it could have misrepresented the situation so completely. The report confirmed that the institution was aware of the level of corruption but laid the blame on "self-seeking" staff for whom "association with a 'successful' large country was beneficial to their career (s) ."

Legacy

Suharto, a proclaimed staunch Western Ally,
left behind a heritage of corruption |that will be hard to erase.

 

Suharto Years 1967 - 1998
Foreign Corporate Greed controlling Development
and stimulating Corruption when negotiating
favorable contracts with Government Power Elite

 

Corruption

When discussing the big or greed-based corruption, we should note that the West's transnationals and lending institutions, with their laws against the practice in their home states, became some of the system's beneficiaries. That is, corrupt Indonesian business practices continued not only because of the absence of internal accountability procedures for both business and bureaucracy in Indonesia, but also because of the West's indifference. After the fall of Suharto, the World Bank acknowledged that it knew that 30 percent or more of all development funds channeled directly through the government was being siphoned off. According to a project manager for the World Bank's Jakarta office, many within the organization were able to conveniently rationalize this corruption as "a kind of tax on an otherwise sound economy.In early 1999, after the collapse of the rupiah and the regime and under pressure from the international community, the World Bank com-pleted a report on its performance in Indonesia to explain how it could have misrepresented the situation so completely. The report confirmed that the institution was aware of the level of corruption but laid the blame on "self-seeking" staff for whom "association with a 'successful' large country was beneficial to their career (s) ."

 

 

 

This is an important book that should be read by anyone
who wants to know how the world is run to the advantage
of the wealthy few and the malicious disadvantage of the many poor.

 

A Game as Old as Empire:
The Secret World of Economic Hit Men and the Web of Global Corruption

This review is from: A Game as Old as Empire: The Secret World of Economic Hit Men and the Web of Global Corruption (Hardcover)
John Perkins' ground breaking expose' of the economic machinations and collusion of multinational corporations, high levels of government and the international banking institutions and their brutal exploitation of third world countries in his popular text Confessions of an Economic Hit Man, sent a ripple of concern through this highly corrupt elite community, however mainstream publishing and media chose to ignore these disturbing confessions, wanting proof other than Perkins text. As Perkins states in his introduction in this sobering and informative text, A Game as Old as Empire,

 

 

"Eventually a courageous independent publisher, Berrett-Koehler, took the book on. Confessions success among the public astounded me. During its first week in bookstores it went to number 4 on Amazon.com." (P.2)

Despite being on the New York Times best seller list for 25 weeks, The Times refused to review it.
(Much later the book was featured in the Times Sunday Supplement)

The fact that the book implicates the highest echelons of government and corporations, including the IMF, WTO, World Bank, U.S.A., Britain and the "G8" countries deeply involved in money laundering, tax evasion and environmental disasters that turns
one's stomach, never mentioned in the main stream media, reveals the appalling extent of this corruption.

A Game as Old as Empire is a collection of essays by investigative journalists, EMH's, academics, practicing lawyers, scientists and writers exposing the extent of corruption in the exploitation of developing countries; for example lending billions of dollars, raising debt, knowing full well that particular regimes were pocketing the cash, opening off shore accounts, while the regime's country falls further into abject poverty, then to lend more money, raising debt further...

These essays are terribly disturbing as the greed, destruction and waste is so vast, crippling small countries, causing poverty to become more entrenched to fill the pockets of a Global elitist few and their cronies.

One would logically assume that because of the billions of dollars poured into some third world countries for their development, one would see the benefits of such huge investments. In actual fact, there has been no benefit, because in most cases, the poverty has worsened. Why? Money is loaned to known corrupt regimes that pocket the money and make the money clean through tax loopholes and off shore accounts.

Other reasons are presented such as the trade agreements of the World Trade Organization which makes it impossible for developing countries with debt to produce and export because developed countries, per the WTO agreements, import products into the local market underpricing them, thus making it impossible for the developing country to rise out of debt, let alone make a living.

In this review I've chosen not to write specific examples of this high level corruption as this format, does not allow the space. However, in order to understand the extent that these so-called elites go to... including genocide, crimes against humanity and all out war and occupation in order to ensure access to resources such as oil and other natural resources, read this text because it will make you wonder how and why it has gone on for so long.

Confessions of an Economic Hit Man started the ball rolling in terms of more awareness of the waste and destruction that neo-liberalism and globalization has wrought on developing countries; A Game as Old as Empire is the confirmation and the quintessential wake up call to actually do something about it.

In the last chapter, Global Uprising: The Web of Resistance, Antonia Juhasz writes a compelling piece for all concerned individuals around the globe to do something about this entrenched elitist corruption. The bibliography is extensive and worthy, including a list of important web sites to enhance your knowledge.

Even if you haven't read "Confessions", A Game as Old as Empire will inform, disturb, shock and hopefully stir some of us into action before these elitist corporations, banks and exclusive, corrupt governments go too far...

 

The Dark Underbelly of International Economics,
June 27, 2007
By Steven K. Szmutko

This review is from: A Game as Old as Empire: The Secret World of Economic Hit Men and the Web of Global Corruption (Hardcover)
In CONFESSIONS OF AN ECONOMIC HIT MAN, John Perkins outlined his 20-year career as agent of the government and multinational corporations as they attempted to (and succeeded in) exploiting lesser-developed countries. That book, published by Berrett-Koehler in 2004, painted a rather gloomy picture of the dark side of globalization - in theory, a worthy endeavor.

A GAME AS OLD AS EMPIRE, edited by Steven Hiatt with an introduction by Mr. Perkins, continues the story of this exploitation, abuse, and waste in the name of "globalization." Let me say - as an aside - that I remain a proponent of globalization within the context of responsible stewardship. Removing barriers to trade, offering educational, vocational, and economic opportunities to men and women of all nations, is a good thing. Done properly, economic development and stewardship offers the possibility of true societal progress, ennobling humanity, enriching lives, nurturing the environment and increasing business activity and profits.

Unfortunately, the reality is far different from the ideal. The shortsightedness and greed of political and leaders - focused only on personal enrichment or the next quarter's operating results - leads to a culture of global exploitation. The pattern is familiar: special interests descend like locusts, consume everything in their path, and then move on, leaving a wake of destruction, degradation, and despair.

The book presents a compelling exploration of these economic and human abuses through other voices, most of those voices from men and women that participated for a time in the dance of exploitation for their temporal masters. The individual essays focus on a number of issues ranging from the stranglehold of foreign debt, the culture of ineptitude and corruption in many aspects of international banking, and the unconscionable extraction of natural resources (as in the Congo) at the high cost of human life and economic prosperity.

A GAME AS OLD AS EMPIRE is expectedly one-sided in that it shows only the abuse and corruption of international economics. There are many businesses that operate with high-principles and integrity (while maintaining high earnings for both its management as well as other constituents). However, the book serves an important purpose in that it shows that all is not sunshine and roses in the global economy. There is corruption, waste, incompetence, and short-sightedness that is unacceptable from not only a human standpoint, but from a business valuation perspective as well. I would recommend this book to anyone who seeks to undertake an intelligent study of the state of international economics in the real world.

 

Review by Common Ground Magazine
March, 2007
Written by Adrian Zupp
In 2004, John Perkins' Confessions of an Economic Hitman created waves, spoke the unspeakable and became a New York Times bestseller. In it Perkins came clean about how he'd helped US intelligence agencies and multinationals exploit the economies of Third World nations. A Game As Old As Empire - for which he wrote the introduction - is the follow-up, and this time a wide variety of in-the-know authors corroborate and expand upon Perkins' story. And it's frightening stuff.

In plain language - and providing sufficient historical background - we are shown how First Word countries have used "economic hit men," institutions like the World Bank and IMF, coercion and even outright strong-arm tactics to steal from the developing countries - often in collusion with the elites of those countries who are happy to hide their ill-gotten gain in offshore accounts.

A Game As Old As Empire is well referenced, very readable and perversely entertaining. Hard data is combined with first-person narratives and the machinations of international economics are made accessible for the layperson. And the book goes one step further by offering hope and practical advice. The chapter "Global Uprising: The Web of Resistance" by policy-analyst Antonia Juhasz sheds light on how people can change the corruption and help create a better world. There is also an appendix: "Resources for Hope."

With chapters such as "The Human Cost of Cheap Cell Phones" and "Hijacking Iraq's Oil Reserves," Game has a conscience-pricking currency.

This is an important book that should be read by anyone who wants to know how the world is run to the advantage of the wealthy few and the malicious disadvantage of the many poor.

 

 

 

 

 

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