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CORRUPTION   1 2 3 4 5   NAZARUDDIN CASE 1 2

Nazaruddin     Supreme Court sentences Nazaruddin to seven years Rabby Pramudatama, The Jakarta Post, Fri, January 25 2013, 7:34 AM The Supreme Court has rejected the appeal of graft convict Muhammad Nazaruddin, a former treasurer of the Democratic Party, and sentenced him to seven years in prison for bribery. The country’s highest court handed down the verdict on Tuesday, adding two years and two months to his sentence. The Supreme Court also increased the fine that Nazaruddin has to pay from Rp 200 million (US$20,779) to Rp 300 million. “The Supreme Court rejects the defendant’s appeal and accepts the prosecutors’ demand,” presiding Supreme Court justice Artidjo Alkostar, said on Tuesday. The Jakarta Corruption Court had found Nazaruddin guilty of accepting bribes and sentenced him to four years and 10 months in prison. The Supreme Court found that Nazaruddin was also guilty of initiating the meetings which later spawned the graft scheme. The justices concluded that Nazaruddin was guilty of breaches of Article 12 (b) of the 2001 Corruption Law on bribery. The verdict automatically annuls the Jakarta Corruption Court conviction of April 20, 2012, which was on Article 11 on gratuities. The verdict was lower than the KPK prosecutors’ demand of seven years. KPK chairman Abraham Samad hailed the Supreme Court’s verdict saying: “This is the kind of punishment that the KPK wants in as a deterrent to corruptors,” he said. Nazaruddin’s lawyer Elza Syarief was disappointed with the verdict. “The Supreme Court should reduce his jail term. He has helped uncover other corruption cases and the KPK are following leads that Nazaruddin gave them,” she said. Elza said she planned to submit a case review after consulting with her client. Nazaruddin was tried in the 2011’s Southeast Asian (SEA)SEA Games bribery scandal centering on the construction of athlete’s dormitory in Palembang, South Sumatra. Nazaruddin was a member of the House sport commission at that time and was found to have accepted Rp 4.6 billion from businessman Mohamad El Idris, marketing director of construction company PT Duta Graha Indah (DGI), to rig the bid in DGI’s favor. KPK spokesperson Johan Budi said that the KPK continued to gather information and evidence that could implicate Nazaruddin in other graft cases. The commission has opened a full-blown investigation into money laundering allegations against Nazaruddin, who is suspected of using money from the SEA Games scandal to purchase shares in PT Garuda Indonesia. The KPK recently questioned Nazaruddin’s aide Gerhana Sianipar. The KPK has also found evidence for Nazaruddin’s alleged involvement in several other graft cases including those at the Transportation Ministry and the Education and Culture Ministry.     Nazaruddin convicted April 20, 2012     Sentenced to 4 Years & 10 months                   Nazaruddin on trial Nazaruddin accuses Democrat Party leadership         Former Treasurer Convicted of Bribery in Indonesia By SARA SCHONHARDT Published: April 20, 2012 JAKARTA — An Indonesian court on Friday sentenced the former treasurer of the governing Democrat Party to four years and 10 months in prison and fined him 200 million rupiah for bribery, in the first of several verdicts in a case that has riveted the nation and shaken the party of President Susilo Bambang Yudhoyon. The country’s Anti-Corruption Court convicted Muhammad Nazaruddin, who was fined the equivalent of $22,000, of accepting more than 4.68 billion rupiah in return for helping rig the tenders for an athletes’ village built for the Southeast Asian Games in South Sumatra last November.     Mr. Nazaruddin had fled Indonesia hours before being named a suspect in the case, causing an international manhunt that ended after seven weeks with his capture by Interpol in Colombia last August. Since then, the case has damaged the image of the Democrat Party, the political vehicle established by Mr. Yudhoyono, who had won re-election as president in 2009 based largely on promises to eradicate graft. “This is just the beginning of a very serious and long problem for the Democrat Party,” said Effendi Gazali, a political communications researcher at the University of Indonesia. “They launched a very serious political advertising campaign to say ‘no’ to corruption, but then they do something absolutely different to what they are trying to say.” The case against Mr. Nazaruddin has been seen as a major test of the Democrats’ staying power before elections in 2014. It is also a measure of the performance of the country’s graft-busting agencies, including the Anti-Corruption Court and the Corruption Eradication Commission, a body that has been criticized by civil groups for not being aggressive enough in fighting official wrongdoing. Rampant corruption has long plagued Indonesia, a country that often ranks near the bottom of international corruption indexes. Recent cases have exposed criminality by ministry officials and members of Parliament, casting a cloud over Mr. Yudhoyono’s antigraft campaign. In a meeting with foreign diplomats in February, the president cited his government’s fight against corruption. “We are carrying out the most aggressive anticorruption campaign in Indonesian history,” he said. Critics say they have seen few signs of a reduction in graft. But officials with the Corruption Eradication Commission say the Nazaruddin case could mark the start of a series of larger trials that implicate other ministries. “I hope this is the beginning of the next round of trials,” said Danang Widoyoko, the director of Indonesian Corruption Watch. “Only with the other cases will we know the true scale of his involvement.” Indonesia’s corruption court has claimed a 100 percent conviction rate since it began trying cases in late 2003. But it has shied away from pursuing charges like money laundering, which carry longer maximum sentences but require more evidence. Mr. Widoyoko said Mr. Nazaruddin should have received a longer sentence, particularly since he was uncooperative during the trial and attempted to escape prosecution by fleeing the country. While on the run and again during his trial he accused several senior Democrats, including Youth and Sports Minister Andi Mallarangeng and Anas Urbaningrum, the party chairman, of accepting kickbacks in connection with the athletes’ village. All the accused have denied the allegations, and the Corruption Eradication Commission has not followed up with investigations.

Anas Urbaningrum Chairmain Partai Demokrat Angelina Sondakh Partai Demokrat Andi Mallarangeng Minister of Sports Accused of bein complicit in various corruption schemes Suspect in the high-profile SEA Games’ bribery case Accused of involvement in the SEA Games corruption case. What about them ??? Nazaruddin named much of the senior leadership of the ruling Democratic Party, of which he was treasurer, as being complicit in various corruption schemes         Novianti Setuningsih & Rizky Amelia | 12:21 AM April 21, 2012 With Nazaruddin Jailed, Time to Address His Allegations With the fate of high-profile graft suspect Muhammad Nazaruddin now decided, after the Jakarta Anti-Corruption Court on Friday handed down a prison sentence of four years and 10 months, the next question is what will become of the people he tried to drag down with him during his trial. Nazaruddin named much of the senior leadership of the ruling Democratic Party, of which he was treasurer, as being complicit in various corruption schemes — and just before his sentencing, he dropped his latest bomb.     The deputy chairman of the Corruption Eradication Commission (KPK), Busyro Muqoddas, and his cohorts, Nazaruddin said, are all corrupt. “Cut my ears off if they are not corruptors,” Nazaruddin said, without providing details. Meanwhile, KPK spokesman Johan Budi said the commission could use the verdict to help it unravel the rest of the bribery case surrounding the athletes’ village construction project for the 2011 Southeast Asian Games. “As the leadership of the KPK has said, Nazaruddin’s verdict is an opening for the KPK to follow up on the bribery case at the Sports and Youth Affairs Ministry’s secretariat,” he said. The verdict, he said, will also help “facilitate the investigation of Mrs. A.S. as a suspect,” Johan added, referring to Democratic lawmaker Angelina Sondakh, now a suspect in the same case. KPK prosecutor Anang Supriyatna said reports that Nazruddin, Youth and Sports Affairs Minister Andi Mallarangeng, ministry secretary Wafid Muharam, lawmaker Mahyuddin and Angelina once met to discuss the Hambalang Stadium project in Bogor were grounds enough for further investigation. The wife of Democratic Party chairman Anas Urbaningrum, Atiyah Laila, has also been mentioned by the KPK as one of the parties allegedly involved in the graft-ridden Hambalang project. Angelina has denied Nazaruddin’s claims that she received up to Rp 10 billion ($1 million) for her role in the project. The party chairman himself is among the Democratic Party leaders the former treasurer has accused of corruption. Anas, Nazaruddin told prosecutors, was the owner of Permai Group, the conglomerate behind a string of companies used to win government contracts and launder bribes. Construction company Adhi Karya won the contract for the athletes’ village after paying Rp 100 billion to help the Democrats hold a national congress, Nazaruddin said. He said Permai Group chipped in Rp 30 billion and $5 million to help Anas win the party chairmanship in 2010. He also accused Anas of involvement in graft linked to the Hambalang project. Nazaruddin Anas Urbaningrum       Nazaruddin Says Hambalang Was Anas’s Primary Project 29 March, 2012 TEMPO Interactive, Jakarta:Bribery defendant Muhammad Nazaruddin, implicated in the SEA Games athletes’ village project scandal, has once again pointed to Democrat Party chairman Anas Urbaningrum’s role in the Hambalang Stadium project of Bogor. Anas has been accused as the initiator of the Rp1.2-trillion project. “Hambalang was especially picked by Anas,” said Nazar during trial at the Anti-Graft Court (Tipikor) in Jakarta on Wednesday. Nazaruddin said the Hambalang project was initially planned to be worked on by contractor Duta Graha Indah, but, the project was then diverted to Adhi Karya. The sports complex project has allegedly served as the source of Rp100 billion funds used to secure Anas’ chairmanship during the Democrat Party Congress in Bandung. Nazaruddin added that, as faction chairman, Anas ordered some faction members to meet Sports Minister Andi Alifian Mallarangeng. The meeting took place in January 2010. Those who attended the meeting were legislators Mahyuddin and Angelina Sondakh. In addition, Sports Minister Secretary Wafid Muharam was also present. “The meeting was held to ensure smooth communication between the Sports Ministry and the Sports Commission with regard to Anas’ project,” said Nazaruddin, who was the former treasurer of the Democrat Party.     Campaign Manager Democratic Party Leadership Saan Mustofa Deputy Secretary General Nazaruddin also said he had sent money to Ahmad Mubarok to finance a foundation the senior Democrat had established. The Democratic Party’s deputy secretary, Saan Mustofa, was also accused of taking money in the Hambalang project, while the party’s deputy chairman, I Gede Pasek, was named as the distributor of bribes for the party’s leadership.       Didi Irawadi Syamsudin Party deputy chairman Jafar Hafsah Head of the party in the House Mirwan Amir Deputy Head House Budget Committee, Another party deputy chairman, Didi Irawadi Syamsudin, and the head of the party in the House, Jafar Hafsah, have also been accused of taking money from the Hambalang project. The deputy head of the House Budget Committee, Democrat Mirwan Amir, was also said to have contributed Rp 20 billion from project “fees” he had levied to Anas’s election campaign team.       Jimly Asshiddiqie Constitutional Court Chief Judge Nazaruddin The Accuser Janedjri M. Gaffar Court Secretary General, Nazaruddin has also accused former Constitutional Court chief judge Jimly Asshiddiqie and the court’s secretary general, Janedjri M. Gaffar, of graft linked to the construction of the court’s building. Nazaruddin’s wife, Neneng Sri Wahyuni, is also wanted on graft charges, but remains on the run.         Democratic Party Breathes Sigh of Relief After Nazaruddin Verdict Rizky Amelia, Ezra Sihite & Novianti Setuningsih | April 21, 2012 President Susilo Bambang Yudhoyono’s Democratic Party called Friday’s verdict in the corruption case of its former treasurer Muhammad Nazaruddin fair and appropriate. Indonesia Corruption Watch, however, slammed the four-year, 10-month prison term handed down to the former lawmaker, saying it was far too lenient for such a high-profile graft convict. Emerson Yuntho of the ICW said the Jakarta Anti-Corruption Court should have jailed Nazaruddin for seven years, as demanded by prosecutors, or more. “According to the ICW’s records, there are many cases where convicts get sentences higher than those demanded by the prosecutors [at the Jakarta Anti-Corruption Court],” Emerson told the Jakarta Globe. “But the judges seemed to simply follow the pattern of most judges, handing down a sentence that was only two-thirds of the prosecutors’ demand.” Democratic Party officials said they were pleased that the court had not connected the bribes received by Nazaruddin with the party’s 2010 congress in Bandung, where Anas Urbaningrum was elected party chairman. Amir Syamsuddin, the justice and human rights minister, who is on the party’s board of patrons, said the court had made its decision independently. He lauded the judges for dismissing what he called Nazaruddin’s irrelevant accusations against the party. “It was a fair trial,” he said. Nazaruddin’s arrest and trial have given a black eye to the president and the Democrats, with surveys showing both suffering dips in popularity. He was a rising star in the president’s party until it all came crashing down last year as he fled the country following the emergence of graft allegations. He was convicted of taking about $500,000 to help a construction company to win a contract to build the athletes’ village for the Southeast Asian Games last year. The party’s deputy chairman, Sutan Bhatoegana, said they were satisfied with the verdict. “From the beginning we trusted and respected the judges,” he said.” Hopefully this can be a lesson for Nazaruddin and won’t hurt the public’s sense of justice.” “[The sentence] is sufficient,” he added. Nazaruddin has repeatedly said he provided money to help Anas win the party chairmanship at the Bandung congress. Yulianis, former vice director of Nazaruddin’s Permai Group, supported her former boss’s claim, saying Rp 30 billion ($3.3 million) and $5 million were provided to the Democratic Party to help fund the congress. She said $3 million came from donations while the rest, Rp 30 billion and $2 million, came from the Permai Group. The $3 million, she said, was received by Nazaruddin’s driver and one of his staff members. The money was later kept in the office of Nazaruddin’s wife, Neneng Sri Wahyuni. Yulianis was adamant that the money was intended to help fund the congress, though Nazaruddin claimed at the same hearing that it was to help Anas win the party’s chairmanship during the congress. In its verdict, however, the court dismissed the claims, saying the congress had nothing to do with the SEA Games scandal. Democratic Party lawmaker Gede Pasek Suardika said the court’s verdict was evidence that there was no corruption involved in the congress. “It has been proven that the congress had nothing to do with the SEA Games case,” he said. Youth and Sports Minister Andi Mallarangeng, who has been named by Nazaruddin and other witnesses as having received bribes, said the party accepted the court’s verdict. The ICW demanded that the Corruption Eradication Commission (KPK) quickly continue with its investigations into other cases involving Nazaruddin. “And the KPK should have no doubt now about following up names that Nazaruddin implicated during his trial,” Emerson said.

Democratic Party readies to replace Anas if named suspect Dicky Christanto, The Jakarta Post, Jakarta | Mon, 01/30/2012 5:19 PM The Democrat Party’s advisory board is ready with a list of potential successors if party chief Anas Urbaningrum is named a graft suspect by the Corruption Eradication Commission (KPK), according to a member. “It will be the same procedure as before. Once he named a suspect, we have prepared names to replace him,” board member Ajeng Ratna Suminar told The Jakarta Post on Monday, declining to mention specific names. Ajeng said the advisory board had discussed Anas’ potential successors before raising the issue a meeting at the home of board chief Presdient Susilo Bambang Yudhoyono last week. Separately, a party fellow, Didi Irawadi Syamsuddin, said he was unaware of a list of potential successors to Anas. “We haven’t discussed anything like that, simply because Anas’s legal status is still free,” he said. According to three high-profile witnesses – Muhammad Nazaruddin, Mindo Rosa Manulang and Yulianis – Anas allegedly accepted a bribe in connection with a constructional scandal before last year’s Southeast Asian Games in Palembang last year.   KPK leaders split over plan to arrest Anas, Andi:Mallrangeng Ina Parlina, The Jakarta Post, Jakarta Thu, 01/26/2012 3:22 PM Anas Urbaningrum Chairman Demoxcratic Part Andi Mallarangeng Minister Sports & Youth Affairs Corruption Eradication Commission (KPK) leaders are split over a plan to arrest Democratic Party chairman Anas Urbaningrum and Sports and Youth Minister Andi Mallarangeng, Both have been named suspects in the SEA Games graft scandal.   COMPARE THE SITUATION     Indonesian boy convicted of stealing old sandals PALU, Indonesia (AP) — An Indonesian court found a boy guilty on Wednesday of stealing a pair of worn-out sandals but allowed him to go free in a case that captured headlines and focused attention on the country's uneven judicial system. Hundreds of people who packed the court building in Central Sulawesi's capital screamed with dissatisfaction as the judge read the verdict. Most of the onlookers had brought pairs of used sandals and piled them outside the courtroom to express their frustration over the legal system. Some rallied outside the building ahead of the hearing to demand the 15-year-old boy's acquittal.... more » The boy, who cannot be named because of his age, could have received five years in prison — the same sentence given to many terrorists, drug pushers and rapists. .       Indonesia outrage at boy's conviction for sandal theft 4 January 2012 Indonesians have been expressing outrage at the conviction of a teenage boy for stealing a pair of sandals. The 15-year-old boy was facing a possible five-year jail sentence but the court on the island of Sulawesi instead ordered that he be sent home. Many Indonesians have been leaving sandals at police stations in protest. Many say it is unfair that corrupt officials are treated leniently by the courts, while those without money or influence can receive severe sentences. Hundreds of people packed the court room as the sentence was handed down, leading to howls of protest from many of those who had gathered. "Based on evidence and witness testimonies, we found him guilty... of committing a theft," Judge Rommel Tampubolon told Palu district court. "But considering his age, we decided to send him back to his parents," he added. The boy, who cannot be named because of his age, said he thought the sandals had been abandoned outside a boarding house that was used by police. He says that six months later he was accused of theft by a police officer who beat him with a piece of wood until his legs bled. "The policemen slapped and beat us. I fell into a ditch and got bruises on my face and legs", the boy told AFP news agency. "This action of solidarity by the public shows that they disagree with the criminalisation of juveniles, that it goes against a sense of justice," Arist Merdeka Sirait, chairman of Indonesia's Child Protection Commission, told AFP.   Corruption Eradication Commission (KPK) leaders are split over a plan to arrest Democratic Party chairman Anas Urbaningrum and Sports and Youth Minister Andi Mallarangeng, an internal source at the party says. KPK chief Abraham Samad has reportedly issued a warrant to arrest Anas and Andi because both have been named suspects in the SEA Games graft scandal. However, KPK deputies Bambang Widjojanto and Busyro Muqoddas refused to sign the warrant. “Bambang and Busyro suggested that the KPK delay the arrest and refused to sign the warrant,” the source, who declined to be named, said Thursday. The source said that a meeting in Cikeas, West Java, on Tuesday, of party elite members of the Democratic Party including its chief patron President Susilo Bambang Yudhoyono, was aimed to discuss the antigraft body’s plan to arrest the two politicians. Abraham said that this was false, and that the KPK leaders remained undivided. “We are still united,” he said. Abraham also dismissed as false a rumor that the commission was waiting for a nod from the State Palace to arrest both of the ruling party’s senior officials. “The arrest has nothing to do with the palace’s approval. The KPK is an independent body that needs [at least] two kinds of proper evidence before naming someone a suspect,” Abraham said, adding that the KPK was still studying the case. Several Democratic Party elite members, including party deputy secretary-general Angelina Sondakh and former party treasurer Muhammad Nazaruddin, are implicated in the prolonged graft case, after sports and youth ministry secretary Wafid Muharram was caught red-handed last year by the KPK while accepting bribes from businessman Muhammad El Idris and middleman Mindo Rosalina in exchange for their awarding a certain company a contract to build the SEA Games athlete’s dormitory in Palembang, South Sumatra. (swd/mtq)     Columbia National Police arrested Nazaruddin in Cartagena, Columbia Columbia Tuesday August, 6, 2011 Reuters     Nazaruddin Formally Indicted Ronna Nirmala | December 01, 2011 Muhammad Nazaruddin was accused on Wednesday of receiving $514,000 in kickbacks for a Southeast Asian Games construction project. This is the first time the exact scale of the former Democratic Party treasurer’s alleged involvement in the bribery scandal has been revealed. Prosecutors told the Jakarta Anti-Corruption Court that Nazaruddin, who is facing three counts of graft, received Rp 4.67 billion from Duta Graha Indah, the contractor that won the project to build the athletes’ village for the Games. He could face a maximum of 20 years in prison if convicted. “The defendant participated in rigging [the tender], ensuring that PT DGI was awarded the project alongside Permai Group,” the lead prosecutor, I Kadek Wiradana, told the court. Permai Group is a company owned by Nazaruddin and his wife, Neneng. Democratic Party lawmaker Angelina Sondakh was also mentioned in the indictment. “The defendant asked Angelina Sondakh that Mindo Rosalina Manulang be helped in acquiring projects from the Ministry of Youth and Sports Affairs,” Kadek said. Rosalina is the director of another of Nazaruddin’s companies, Anak Negeri. She has been sentenced to two and a half years in prison for acting as a broker in the bid-rigging scheme. Angelina was implicated in the case after a BlackBerry Messenger exchange, allegedly between her and Rosalina, quoted the lawmaker asking for kickbacks. Kadek said Nazaruddin had also set up a meeting between Rosalina, Sports Ministry secretary Wafid Muharam and executives from DGI. Nazaruddin allegedly told Wafid to give the Games project to DGI. Wafid allegedly said he would after Nazaruddin secured support from the House Budget Committee, on which both Nazaruddin and Angelina sat. Prosecutors say that DGI gave Rp 4.67 billion in checks to two of Nazaruddin’s employees, Yulianis and Oktarina Furi, between February and March last year. Kadek said Nazaruddin had been promised 13 percent of the Rp 191 billion project as a “success fee” from DGI. After hearing the charges, Nazaruddin said investigators had never asked him about the accusations laid out in the indictment. “I was never asked about the meeting, the checks, I was never questioned by investigators about the things they say I did,” he said. “Did investigators ask the questions using some form of telepathy? Or maybe some methods more advanced?” Nazaruddin’s lawyer, Hotman Paris Hutapea, said they had the right to see all of the files from the Corruption Eradication Commission (KPK) investigation. “We will challenge the indictment,” he said. “This is our right.” On Tuesday, House Deputy Speaker Pramono Anung said the KPK should investigate everyone involved in the case. Copyright ©2011 Jakarta Globe, All Rights Reserved   The President vs Nazaruddin News Desk The Jakarta Post Publication Date : 25-08-2011 President Susilo Bambang Yudhoyono has humiliated himself to an unimaginable degree in relation to corruption suspect and junior politician Muhammad Nazaruddin. It is not just the President who has to bear the brunt of Nazaruddin's reckless acts but also the whole nation. Seemingly, this country has to face the ugly fact that corruptors rule the nation. Who is Nazaruddin that he could make the President respond so quickly to his letter asking the head of state to protect his family in exchange for his imprisonment? The damage has been done, and there is little choice but to try to recover from the injury resulting from the President's approach. Although there was no substantial issue raised in his written response to Nazaruddin's appeal, the fact that the country's leader offered such preferential treatment to a corruption suspect is incredible and unacceptable. The President may defend his policy, but the way he has acted toward the 33-year-old businessman-cum-politician will only confirm public doubts about his ability to get tough with corrupt officials. Since Nazaruddin's corruption scandal surfaced three months ago, and he managed to flee the country just before a travel ban was slapped on him, Yudhoyono has looked powerless every time Nazaruddin divulged secrets and threatened to disclose other culprits and masterminds behind graft cases that are plaguing the Democratic Party. The hunt for Nazaruddin, his capture in Colombia and retrieval by Indonesian law enforcers are more causes for concern, as no fugitive has ever received such treatment. Most Indonesians are at loss when witnessing the President's super-speedy response - just three days - to the letter by the dismissed former treasurer of the Democratic Party, who offered to barter the secrets he says he has about Yudhoyono's party and its elites, plus his readiness to be made the sole actor in the mega corruption scandal, for the protection of his wife and children. "Who do you think you are?" his inner circle aides jeered at Nazaruddin when he sent a personal letter to Yudhoyono, asking for clemency in exchange for his readiness to cover up the corruption scandal that has rocked Yudhoyono's Democratic Party. Much to their mortification, Nazaruddin only needed to wait three days to receive a reply from the President himself; a super-express mail response. It is very clear that the President treated Nazaruddin like a super VVIP. Why was Yudhoyono very concerned to address the party's sacked treasurer? Does a suspect in a major corruption scandal have the ability to destabilize the country? Nazaruddin was only a newcomer on the political stage, who skyrocketed from being a nobody to becoming a high-profile politician because of his obvious skill in acting as a generous financier for the party and its politicians. In return for which, he was given complete freedom to rob the state's coffers by using primitive, criminal methods. There are hundreds of letters to the President, which have remained unanswered for months, even years, including appeals from the victims of human rights violations and complaints about rampant corrupt practices in the bureaucracy. Yudhoyono's second term will continue until September 2014 but it is not too much of an exaggeration to predict that he will be a lame duck president for the next three years. We cannot expect much from his leadership, leaving the country to be run by a government on autopilot.   Nazaruddin probe NOW the real work starts. The saga involving the former treasurer of the Democratic Party, Muhammad Nazaruddin, has kept the nation riveted for the past few months given his brazenness, the worldwide hunt for him and the extraordinary costs incurred in bringing him back. Not only is Nazaruddin wanted by both the Corruption Eradication Commission (KPK) and the police, he is linked to 31 graft cases involving state projects totalling more than Rp6tr ($700m). These are enormous sums … and if true, he could not have acted alone. As the job of getting down to the details begins, there will be enormous public scrutiny and pressure on the KPK. …Its very standing in the public eye is at stake, and if it fails to be totally above board and transparent, it will quickly lose its good name. The KPK is not the only institution whose reputation is on the line. In such a high-stakes game, the reputation of the entire judiciary and security apparatus of the nation is at risk. … There are already fears that Nazaruddin may be made a scapegoat to help hide other powerful individuals…. It is absolutely critical that there be no grand political deal done to protect higher interests. Nazaruddin has implicated scores of others in his graft cases and every one of these allegations must be fully investigated. But even as no stone is left unturned, it is important that we do not become obsessed with this one case. We cannot afford to let other business of the state fall by the wayside if all attention and resources are focused on Nazaruddin’s case…. — (Aug 15)   Nazaruddin will not discuss corruption: Kaligis The Jakarta Post, Jakarta | Wed, 08/17/2011 6:08 PM OC Kaligis, a lawyer representing graft suspect Muhammad Nazaruddin, said his client would not say anything regarding graft cases implicating top Democratic Party politicians or Corruption Eradication Commission (KPK) leaders. “So tell Pak Susilo Bambang Yudhoyono, [Nazaruddin said] 'I will not talk about the party,'” Kaligis said on Wednesday, quoting Nazaruddin after visiting him at the Police Mobile Brigade detention center in Depok, West Java. Kaligis added that his client would only say in Thursday’s questioning session: “Just put me in jail.” Nazaruddin would also keep silent regarding his corruption accusations against high- ranking KPK officials Chandra M. Hamzah, M Jasin, Ade Rahardja and Johan Budi. Nazaruddin, suspected of bribery involving the 2011 SEA Games athletes' village construction, was arrested in Colombia last week. While on the run, he accused a number of top Democratic Party politicians such as Anas Urbaningrum, Angelina Sondakh and Mirwan Akmir of corruption. He also accused Chandra and Ade of making a deal with Anas not to probe Anas in a graft case. In return, Anas would guarantee their positions as KPK leaders.   Indonesia’s high-profile graft case widens August 16, 2011 5:07 pm Indonesia’s top anti-graft body widened a bribery investigation into the former treasurer of the ruling Democrat party to include several government departments, in a case that has thrown the political establishment into disarray. The probe into Muhammad Nazaruddin now spans the ministries of sport, health and education and at least $352m in suspect transactions, Johan Budi, a spokesman for the Corruption Eradication Commission (KPK), said on Tuesday. Mr Nazaruddin, once a rising star within the party, is suspected of paying off officials to secure multimillion-dollar building contracts for the Southeast Asian Games for his company, Duta Graha Indah. The commission is investigating the tender contract process for the games and another five cases related to government projects at the health ministry and education ministry valued at $352m, Mr Budi told the Financial Times. All the party officials concerned, including Mr Nazaruddin, have denied wrongdoing. The case is likely to damage the credibility of Susilo Bambang Yudhoyono, the president, after having won two elections on a campaign to reduce poverty and wipe out widespread corruption. The Nazaruddin case comes quickly after the case of Gayus Tambunan, the junior bureaucrat who was convicted for making millions helping companies evade taxes. Mr Yudhoyono's approval rating dropped to a record low of 47 per cent in June, down from 56 per cent in January, according to a survey by Indonesian Survey Circle. Despite the president’s anti-corruption drive, Indonesia is ranked as one of the most corrupt countries by Transparency International, with the judiciary, parliament and police force seen as the most graft-ridden institutions. Under Mr Yudhoyono, who is midway through a second and final five-year term, the KPK detained and prosecuted dozens of lawmakers and governors. The father-in-law of Mr Yudhoyo’s son was prosecuted and later convicted of corruption. But the investigation of Mr Nazaruddin is the first time a sitting member of his political circle has been implicated in wrongdoing. “When Nazaruddin’s case first came to light no one expected it to reach the current proportions – severely denting Mr Yudhoyono’s undeniable popularity,” said Karim Raslan, founder of KRA Group, an Asian political risk consultancy. The alleged misconduct of high-level party members is reminiscent of the era of the Suharto dictatorship – which collapsed 13 years ago – when the family and cronies of the late president accumulated huge personal wealth by running state-owned businesses. Mr Budi said the commission, which came under attack by rival police and prosecutors last year after investigating law enforcement agencies, has again become the target of political opponents. “There are parties who want to undermine the KPK . . . There have even been threats against some of the commissioners,” Mr Budi said. “It is as if they don’t want the KPK to broaden the case.” Mr Nazaruddin, 32, is in high-security detention in Jakarta, the capital. Hearings against him will begin once the KPK completes its investigation, probably within 120 days.    Nazaruddin Case Develops More Twists Anita Rachman, Ulma Haryanto & Vento Saudale | August 15, 2011 Threats and counterthreats, or at least fears or reports of them, flew back and forth on Monday as the already convoluted scandal surrounding Muhammad Nazaruddin became even more entangled. As the jailed politician was reportedly refusing to eat the food served to him at the Mobile Brigade (Brimob) detention facility in Depok for fear of poisoning, reports emerged that Corruption Eradication Commission (KPK) officials had been receiving death threats since the scandal began. Muhammad Nasir, a Democrat lawmaker, appealed to the House of Representatives to provide protection for his cousin, Nazaruddin. The plea was made when Nasir and O.C. Kaligis, Nazaruddin’s lawyer, met with House Speaker Marzuki Alie, deputy speakers Anis Matta and Pramono Anung, and Fahri Hamzah and Azis Syamsuddin, from House Commission III, which oversees legal affairs. Nasir said Nazaruddin was refusing food, unless it came with a note from Nasir saying he had sent it. Kaligis said Nazaruddin “is afraid he is going to be poisoned.” Speaking on behalf of Nazaruddin’s family, Nasir begged the House leaders “to bring about justice for Nazaruddin. He is still a suspect, don’t treat him as if he’s guilty.” “He fled because he was afraid,” he said. “Please treat him humanely. ” Kaligis also handed the lawmakers a copy of a letter addressed to the Witness and Victim Protection Agency (LPSK) requesting that the institution provide Nazaruddin protection. KPK spokesman Johan Budi said Nazaruddin did not have to worry about being poisoned because “his safety is guaranteed by the National Police chief and the president.” He said security measures put in place at the detention center included CCTV monitoring. “We will add more CCTVs around his cell and also two KPK officers to monitor the cell,” he said. “The CCTVs are not only to monitor him, but also to monitor Nazaruddin guests so that any suspicious behavior can be seen.” Marzuki said that when President Susilo Bambang Yudhoyono talked about ensuring Nazaruddin’s safety, “it’s not only physical safety, but also mental health.” Meanwhile, Abdullah Hehamahua, the chairman of the KPK’s ethics committee, said there were taped telephone conversations that included a plan to murder a number of commissioners. “Yes there [is a recorded conversation], we listened to it on the first day this committee was established,” he said. The committee was formed at the end of July after Nazaruddin made allegations of improper conduct by several KPK officials, including deputy chairmen Chandra M. Hamzah and Mohammad Jasin, KPK’s deputy director of prosecution, Ade Rahardja, and Johan. Abdullah said the recording was almost inaudible, but the conversation mentioned Chandra and Ade and was related to an ongoing graft investigation involving Nazaruddin. Committee member and deputy chairman Bibit Samad Rianto declined to give details on the recording, saying it was still under investigation. But an internal KPK source said that voices in the recording included Nazaruddin’s and that of a person identified as Albert. “[Nazaruddin] wanted to pay billions to have Chandra killed,” the source said. Nuril Anwar, who used to work for Nazaruddin in the House, told the Jakarta Globe last week that his former boss liked to throw threats around when feeling under pressure, but added that they were usually only bluffs. Speaking after members of Commission III visited Nazruddin in his detention cell on Monday, Ahmad Yani, from the United Development Party (PPP), said the suspect only communicated with Kaligis. “He was quiet and appeared tired,” he added. No Democrats were seen among the group   Fugitive’s Return Jolts Indonesia’s Political World By AUBREY BELFORD Published: August 14, 2011 Muhammad Nazaruddin, center, was handed over from Indonesian Interpol to the Corruption Eradication Commission in Jakarta on Saturday. DENPASAR, INDONESIA — It was a moment of high drama, befitting the climax of Indonesia’s latest international corruption saga. After months on the run abroad, Muhammad Nazaruddin, arguably Indonesia’s most hunted man, was bundled out of a Gulfstream jet and into a van at a Jakarta airport on Saturday night under the guard of police officers wearing bulletproof vests and the glare of live television coverage. Mr. Nazaruddin, a former treasurer of President Susilo Bambang Yudhoyono’s Democrat Party, has transfixed the Indonesian public since fleeing bribery allegations in May, evading an international manhunt while lobbing allegations of corruption against senior Democrat politicians and other officials. He was arrested in Colombia last week. The case has proved to be a severe headache for Mr. Yudhoyono, who has positioned himself as a corruption fighter but has seen his public support steadily erode amid perceptions that he is underperforming in that role. The Democrat Party, which was founded as Mr. Yudhoyono’s political vehicle, has seen its image similarly damaged. Mr. Yudhoyono has promised a transparent investigation into Mr. Nazaruddin’s accusations, telling reporters last week, “I hope his return to the motherland will clear everything up.” But analysts say the president faces an uphill battle convincing a populace that is thoroughly sick of the corruption at all levels of society and that is becoming increasingly disillusioned with the country’s democratic transition since the 1998 fall of the dictator Suharto. Mr. Nazaruddin is accused of bribery in relation to the construction of an athlete’s village in the city of Palembang for this year’s Southeast Asian Games. While on the run, he riveted Indonesians from abroad with accusations — delivered in interviews via the telephone and Skype — of corruption involving senior Democrats, including the party chairman, Anas Urbaningrum, and a minister, Andi Mallarangeng, as well as officials of the independent Corruption Eradication Commission, or K.P.K. All those accused deny the allegations and counter that Mr. Nazaruddin is simply trying to save his own skin by dragging others down with him. Regardless of who is telling the truth, the case has gripped the public’s imagination because Mr. Nazaruddin appears to have broken ranks with a political elite widely seen as filled with corruption and all too eager to protect its own with a code of silence, said Yohanes Sulaiman, a lecturer at the National Defense University in Indonesia. “You have to understand, in Indonesia it’s basically taboo to open other’s wounds. It’s honor among thieves,” Mr. Sulaiman said. “In Nazaruddin’s case, it’s really interesting for the public. Why? In his case, he’s willing to sacrifice all his connections and the people who brought him to the seat of power.” All along, there has been conjecture, much of it loosely based and contradictory, in Indonesia’s rambunctious news media that officials and politicians have colluded to silence — or, according to some versions, protect — Mr. Nazaruddin. The fact that Mr. Nazaruddin was able to slip out of Indonesia legally a day before the K.P.K. requested he be banned from traveling, and then was able to evade capture abroad, has proved fodder for such speculation. Mr. Nazaruddin claimed in one interview that an attempt was made on his life while he was abroad; one protest outside the K.P.K. demanded that Nazaruddin be “protected” from Mr. Yudhoyono. All of this represents an attack on the core image of Mr. Yudhoyono as a reformist and corruption fighter. Mr. Yudhoyono was elected by a landslide in the country’s first direct presidential election in 2004, and again in 2009, on pledges to clean up Indonesia, largely through the work of the K.P.K. But opinion polls show his approval steadily slipping along with perceptions of his anti-corruption credentials. Despite a number of high-profile cases, there is little evidence that corruption has been significantly reduced during Mr. Yudhoyono’s tenure, said Luki Djani, a board member of Indonesia Corruption Watch. The Parliament is frequently cited by surveys as being seen as one of the most corrupt institutions in the country, and politicians like Mr. Nazaruddin are usually reluctant to point the finger, even at other parties, out of fear of undermining a system that works to the private benefit of politicians, regardless of their political loyalties. Marzuki Alie, a senior Democrat who is the speaker of the House of Representatives, contends that the party, which has long branded itself with Mr. Yudhoyono’s reformist image, is clean, in spite of Mr. Nazaruddin’s accusations. “The Democrat Party is not a party of corruptors,” Mr. Marzuki said. “If there is someone who happens to be a Democrat official who is involved in corruption, that’s something he’s done under his own name alone.” But he conceded that the party’s public standing had been badly affected by the scandal. Things are getting better, he said, but there is no doubt that Mr. Nazaruddin’s case has struck a chord with sections of a disaffected public. “We can’t yet hope that our democracy is a quality democracy,” he said.   Nazaruddin undergoes second questioning The Jakarta Post, Jakarta | Mon, 08/15/2011 11:56 AM Nazaruddin undergoes second questioning Infamous graft suspect Muhammad Nazaruddin is undergoing a second questioning session at the Corruption Eradication Commission (KPK) headquarters in Jakarta on Monday. The KPK already questioned Nazaruddin on Saturday, soon after his arrival in Jakarta after being on the run in a number of countries for several months. “The questioning [started] at 10 a.m.,” KPK news and information division chief Priharta Nugraha said Monday as quoted by tempointeraktif.com. Earlier, the commission named the former lawmaker and Democratic Party treasurer a suspect in graft case linked to the construction of an athletes village for the upcoming SEA Games 2011 in Palembang. Nazaruddin, however, has managed to evade investigation until now, fleeing the country the day before the antigraft body imposed a travel ban on him. Nazaruddin had been in a number of other countries until immigration officers in Cartagena, Colombia, arrested him over an immigration issue. A team including police and members of the KPK officers immediately flew there and escorted him back home. The case has drawn massive media attention after Nazaruddin alleged that key figures in his party, including Democratic Party chairman Anas Urbaningrum, were also involved in the graft. Until now, however, Nazaruddin has not received whistle-blower status and was denied access to his laywer, OC Kaligis, at the time of his arrest. Kaligis has protested the KPK and police handling of the case, which he says has breached several legal norms. Infamous graft suspect Muhammad Nazaruddin is undergoing a second questioning session at the Corruption Eradication Commission (KPK) headquarters in Jakarta on Monday. The KPK already questioned Nazaruddin on Saturday, soon after his arrival in Jakarta after being on the run in a number of countries for several months. “The questioning [started] at 10 a.m.,” KPK news and information division chief Priharta Nugraha said Monday as quoted by tempointeraktif.com. Earlier, the commission named the former lawmaker and Democratic Party treasurer a suspect in graft case linked to the construction of an athletes village for the upcoming SEA Games 2011 in Palembang. Nazaruddin, however, has managed to evade investigation until now, fleeing the country the day before the antigraft body imposed a travel ban on him. Nazaruddin had been in a number of other countries until immigration officers in Cartagena, Colombia, arrested him over an immigration issue. A team including police and members of the KPK officers immediately flew there and escorted him back home. The case has drawn massive media attention after Nazaruddin alleged that key figures in his party, including Democratic Party chairman Anas Urbaningrum, were also involved in the graft. Until now, however, Nazaruddin has not received whistle-blower status and was denied access to his laywer, OC Kaligis, at the time of his arrest. Kaligis has protested the KPK and police handling of the case, which he says has breached several legal norms.   Recovering the Hidden Treasurer No. 51/XI/August 17-23, 2011 Nazaruddin was arrested in Colombia after disappearing on a chartered jet. FBI agents assisted in tracking down the former Democrat Party treasurer. Police are still tracing the roles of those who arranged his much-publicized flight. THE Under-20 World Cup in Colombia reached the Round of 16 knockout stage, last week. Countries such as Spain, Egypt, Australia, and the host nation had reached this round. Muhammad Nazaruddin chose Bogota, one of eight cities where matches are being held, to watch the final-eight round. The host country faces Costa Rica in this round. On Saturday night two weeks ago, that former treasurer of the Democrat Party was getting ready to fly from Rafael Nunez International Airport in Cartegena. He had been staying in this city on the shores of the Caribbean for several days. Before he could board the plane, two immigration officers stopped him. They asked this member of the Energy Commission at the Indonesian House of Representatives (DPR) to show his identification. Nazaruddin was suspected because he was carrying a passport with a different photo, in the name of Syarifuddin. The immigration official’s computer flashed red, indicating that the identity of this young politician had matched Interpol’s wanted list. The chief of Colombia’s judicial police, General Carlos Mena, said that Nazaruddin presented an Indonesian passport with a different photo and name, as was reported by the Associated Press. That night at 2:15am Colombian time, Sunday morning Western Indonesian Time, Nazaruddin was taken to the police station. Michael Menufandu, the Indonesian Ambassador to Colombia, who had been informed by Interpol officials, immediately flew in from Bogota. On Sunday early afternoon, Menufandu met with Nazaruddin. “He said he had been in Cartegena for four days to hide out,” he said. The ambassador said that Nazaruddin asked that he not be left alone. This suspect in a bribery case involving the construction of the Athlete Accommodations for the XXVI Sea Games in Palembang handed over a black handbag for safekeeping, containing a cellular phone and other items. At around 11pm Colombia time, Nazaruddin was flown to Bogota and arrested. After just two days, the legal authorities turned Nazaruddin over to immigration. On Thursday night local time, he was flown to Jakarta on a Gulfstream, a chartered jet costing Rp4 billion, which was chartered by the Indonesian government. A few hours later, Nazaruddin was still trying to protest to those picking him up—officials of the police department, Corruption Eradication Commission, and the Ministry of Foreign Affairs. He insisted that he be given a chance to be accompanied by his lawyer. His request was denied. Even though there was an immigration violation, the Colombian government decided to deport Nazaruddin to be put on trial for a number of corruption-related crimes. “Colombia has often handled cases such as this, so they know how to deal with it,” said Made Subagia, Minister Counselor at the Indonesian Embassy in Bogota. Nazaruddin’s efforts to obtain political asylum also failed. The Colombian government did not want to be troubled by such criminal matters, which they were afraid might disrupt relations between the two countries. Nazaruddin’s wish to be questioned in Bogota was also turned down. In fact, he was not given a chance to meet with O.C. Kaligis, his lawyer, who had already flown to the South American country. According to Kaligis, Nazaruddin also attempted to hire a local lawyer from the De La Espriella office in Bogota. Lawyer Abelardo De La Espriella had even obtained power of attorney. Written in Spanish, signed by Nazaruddin and marked with his thumbprint, the letter was useless. Just a few hours after the letter was made, at 5:15pm, Nazaruddin was sent home. In Indonesia, the arrest was good news for the government. Early Monday morning, Coordinating Minister for Political, Legal and Security Affairs Djoko Suyanto reported to President Susilo Bambang Yudhoyono. The following afternoon, Djoko held a press conference at the State Palace, announcing the arrest. Djoko pointed out that the black handbag which Nazaruddin had given for safekeeping had already been sealed and could not be opened by anyone. A Palace official said that Nazaruddin’s arrest relieved a heavy burden for National Police Chief, General Timur Pradopo and Chairman of the State Intelligence Agency (BIN) Sutanto. This is because Yudhoyono routinely requested reports on the pursuit of the 32-year-old man born in Simalungun, North Sumatra. “The expression was that those two officials were ‘under the whip’ on account of Nazaruddin,” said one Tempo source. l l l SINCE fleeing to Singapore a day before being banned from leaving the country by the Corruption Eradication Commission (KPK), Nazaruddin managed to leave numerous trails. When he called Tempo, he was using a Cambodia number. Word had it that he had traveled to Malaysia. Police officers said that Nazaruddin’s whereabouts were detected by Interpol when he was still in the Dominican Republic. In that country with a population of 10 million, he was able to communicate via Skype—which was then broadcast on television. “The search team from Indonesian National Police HQ immediately flew to Argentina,” said one police officer. “Because it was suspected that Nazaruddin was going to cross over to there.” Two weeks after the Singapore government announced that Nazaruddin was no longer in their country, police wiretapping equipment detected his phone signal in the area of Tanjung Balai Karimun, Riau Archipelago. However, police could not confirm if Nazaruddin was in Singapore or Indonesia, because Tanjung Balai is an area located on the border of the two countries. Interpol at National Police HQ, on their website, said that they had already received information from Interpol Colombia regarding Nazaruddin’s whereabouts on 5 August. After coordinating and meeting some requirements, an arrest was made just two days later. The KPK also caught on to the Nazaruddin’s presence in Colombia. Investigators at the office received news of their fugitive’s position three days before the arrest. To pursue him, the KPK obtained assistance from investigators from the Federal Bureau of Investigation or FBI, which has its office in Kuningan, Jakarta, starting a few weeks earlier. KPK spokesman Johan Budi S.P. declined to comment on the FBI’s involvement. He verified that Nazaruddin’s presence in Colombia was known three days before his arrest. He said that the information on the use of a fake passport was received by the joint team of Interpol, KPK, and National Police HQ. Insp. Gen. Anton Bachrul Alam, Head of the Public Relations Division at National Police HQ, said that before being arrested Nazaruddin had been to six countries, namely Singapore, Malaysia, Vietnam, Cambodia, Spain, and the Dominican Republic. He said that Nazaruddin’s whereabouts were easily traced, because he often communicated via BlackBerry Messenger with some reporters and others in Indonesia. “Making it easy to follow his movements,” he said. After receiving an order from President Yudhoyono to arrest Nazaruddin, last month, General Timur Pradopo formed a team consisting of seven people. Led by Director V for Specific Crimes at the Criminal Investigation Unit, Brigadier-General Anas Yusuf, the team was divided into three: the monitoring team, negotiation team, and search team. The extent of the fugitive’s flight made the police suspect that someone was making the travel arrangements from Indonesia. Moreover, the police had intercepted the communication of someone who was communicating with Nazaruddin, talking about his flight. Refusing to mention this person’s complete identity, a senior police officer said that this individual resides in Bogor, West Java. l l l NAZARUDDIN’S arrest is bad news for Syarifuddin. This 28-year-old was picked up by officers of the North Sumatra Police Department on Jalan Alfalah, Medan, on Tuesday last week. “He was arrested for questioning in connection with the use of his passport by another person,” said Commissioner Saptono, Head of the Vice Control Unit at the Directorate of Criminal Investigation at the North Sumatra Police. Syarifuddin is Nazaruddin’s cousin. “Their mothers are sisters,” said Zulkifli A.R., the lawyer who accompanied Syarifuddin while he was questioned by police. Zulkifli said his client often met Nazaruddin in Jakarta. “They would meet each Lebaran. But this was just a regular family visit.” In Medan, Syarifuddin lives at the home of his uncle, Muhammad Yunus Rasyid, on Jalan Garu I, Selamat 271, Medan. At this luxurious two-story residence built in a Middle-Eastern style, he completed his university studies while working to help his uncle. Yunus Rasyid, a former politician of the United Development Party and deputy speaker of the Medan regional legislative assembly from 1999-2009, is well-respected in Medan. However, his political career went downhill after failing to win a seat in the 2009 legislative election. Thanks to Nazaruddin’s lobbying, his nephew who was already a senior official in the Democrat Party, Yunus switched to the Democrat Party. Now he is Assistant Secretary of the Regional Leadership Board of the Democrat Party in North Sumatra. How could Syarifuddin’s passport end up in Nazaruddin’s hands? Minister of Justice and Human Rights Patrialis Akbar said that someone sent that passport abroad to Nazaruddin. However, Syarifuddin denied this. He said that his passport went missing after he used it on 27 June after returning from Singapore. The Class I Immigration Office of Polonia Medan, which issued Syarifuddin’s passport in 2008, notes that Syarifuddin only used his passport twice this year. The first was on 22 May to Penang, Malaysia, for medical treatment. The second time was to Singapore from 18-27 June. Until Wednesday of last week, Syarifuddin’s position was still safe. “He was not arrested for lack of evidence,” said North Sumatra Police Chief, Insp. Gen. Wisjnu Amat Sastro. However, Section Head of the North Sumatra Police, Sr. Comr. Raden Heru Prakoso, confirmed that investigation into Syarifuddin’s involvement has not been ceased. He said that the police are also investigating a possible role played by Yunus Rasyid. “Because Syarifuddin said that his passport went missing at his uncle’s home,” he said. l l l ON arrival in Jakarta, Nazaruddin will have little time to rest. He is wanted for questioning in numerous corruption cases which he is accused of. In addition to being a suspect in the bribery case of the construction of athlete accommodations, he is also a witness in several graft cases at a number of cabinet ministries. The Corruption Eradication Commission said that hundreds of companies connected with him are suspected of causing hundreds of billion of rupiah of state losses. The KPK has asked for the first chance to question Nazaruddin. “Even though there are cases with the police and the Attorney General’s Office, Nazaruddin is a KPK fugitive,” said Johan Budi. “We want to be the first to question him.” Despite being in a heap of trouble, Nazaruddin still has a secret weapon. One police officer said that Nazaruddin has entrusted a load of evidence with his lawyer in Singapore. According to him, even Kaligis does not have access to those secret documents. Although he has been arrested, it could so happen that Nazaruddin will continue to attack his former colleagues. Setri Yasra, Anton Septian, Pingit Aria (Jakarta), Sahat Simatupang (Medan), Tomi Aryanto (Bogota) Copyright @ tempointeractive     Inilah Taktik Petugas Membawa Pulang Nazaruddin Jum'at, 12 Agustus 2011 | 11:50 WIB TEMPO Interaktif, Bogota - Keinginan Muhammad Nazaruddin agar dirinya diperiksa di Bogota, Kolombia, ditolak oleh otoritas pemerintah setempat. Ia dideportasi dan diserahkan kepada pemerintah Indonesia yang telah mengirim tim penjemput sejak beberapa hari lalu. Permintaan Nazaruddin untuk mendapatkan perlindungan politik dalam status "political asylum" juga ditolak oleh pemerintah Kolombia. Menurut Wakil Duta Besar RI di Bogota, Made Subagia, penolakan itu dilakukan karena pemerintah setempat tak ingin direpotkan oleh masalah kriminal seperti kasus Nazaruddin. "Kolombia sudah sering menghadapi kasus seperti ini," katanya saat ditemui Tempo di kantornya, Kamis petang tadi waktu setempat atau Jumat, 12 Agustus 2011 pagi tadi. "Mereka tak mau hubungan baik yang sudah terjalin selama ini dengan Indonesia terganggu oleh hal-hal semacam ini," ia menambahkan. "Lagipula, kasus Nazaruddin itu adalah pidana murni. Tak ada hak politik apa pun dari yang bersangkutan yang terancam atau dilanggar selama ini." Upaya tim pengacara Nazar di bawah koordinasi O.C. Kaligis untuk memperoleh akses perlindungan hukum juga tak bisa dilakukan maksimal. Bahkan, sejak ditangkap di Cartagena pada 6 Agustus malam lalu, Nazar tak pernah diberi kesempatan untuk didampingi pengacaranya dalam proses pemeriksaan di Imigirasi dan kepolisian setempat. "Itu semata-mata karena aturan dan protokol pemerintah Kolombia," kata Made. "Mereka minta ada kelengkapan surat kuasa dan sebagainya." Melalui Kaligis, Nazaruddin juga berusaha menyewa pengacara lokal dari kantor De La Espriella di Bogota D.C, yaitu pengacara Abelardo De La Espriella. Bahkan, ia sudah berhasil mendapatkan surat kuasa yang ditulis dalam bahasa Spanyol dan diteken Nazaruddin plus cap jempolnya. Namun, hanya selang beberapa jam setelah surat itu dilengkapi, pukul 17.15 waktu setempat, Nazaruddin keburu dibawa terbang dengan pesawat khusus yang disewa untuk dipulangkan ke Indonesia. Y TOMI ARYANTO (BOGOTA)   Indonesia's Muhammad Nazaruddin arrested in Colombia 9 August 2011 Muhammad Nazaruddin was reportedly detained as he attempted to leave Colombia using a false passport The former treasurer of Indonesia's Democrat Party has been arrested in Colombia after weeks on the run following corruption allegations. Muhammad Nazaruddin was detained in Cartagena city after an international manhunt, Indonesian police said. The 32-year-old had been using a false name, officials said. He is accused of accepting bribes worth almost $3m (£1.8m) in connection with tenders for the South East Asian games, to be hosted by Indonesia this year. Mr Nazaruddin has always denied the corruption allegations. Since fleeing the country, he has made corruption allegations against several high-ranking officials of the Democratic Party, which is the biggest party in the governing coalition. Fugitive Mr Nazaruddin was detained on Sunday by Interpol officers as he attempted to leave the country under a false passport, reports said. He was later flown to the Colombian capital, Bogota. Indonesian police say they are now working with the Colombian authorities to bring Mr Nazaruddin home. The suspect had been on the run since May, when he fled Indonesia for Singapore a day before he was due to receive a travel ban. Mr Nazaruddin had already been dismissed by the Democratic Party, and Indonesia's anti-corruption agency had announced that it would be questioning him about the corruption allegations. Three others have been arrested over the scandal. The BBC's Karishma Vaswani in Jakarta says his quick departure has raised questions about why it was so easy for him to leave, given the gravity of the allegations against him. President Susilo Bambang Yudhoyono, who leads the Democrats, has always tried to project an image of himself as the "Mr Clean" of Indonesian politics - one of the reasons Indonesians voted him in for a second term in 2009. But this sort of corruption scandal suggests that he still has a lot to do to prove he can change his country's culture of impunity, our correspondent adds.     Police confirm Nazaruddin arrest in Colombia The Jakarta Post | Mon, 08/08/2011 8:31 PM The National Police confirmed on Monday that a joint team arrested graft fugitive Muhammad Nazaruddin in Cartagena, Colombia, early on Sunday. National Police spokesman Insp. Gen. Anton Bachrul Alam said a team consisting of five people from the national police, one from the immigration office and one from Interpol arrested Nazaruddin on Sunday at around 2 a.m. Colombia time. “Our team arrested Nazaruddin, who used a fake passport and the name Safarudin,” Anton said on Monday. Anton said that the team arrested Nazaruddin along with his wife and several other people. He added that police had matched Nazaruddin’s fingers prints. Anton said Nazaruddin had visited several countries since he left Indonesia in May. Nazaruddin fled to Singapore for medical treatment after he was reportedly connected to a bribery case in the construction of the 2011 SEA Games athlete’s dormitory in Palembang, South Sumatra. When the Corruption Eradication Commission (KPK) named Nazaruddin a suspect, he was no longer in Singapore. From Singapore, Nazaruddin attempted to give the impression that he would next visit Kuala Lumpur, but actually went to Vietnam and then Cambodia, Anton said. “From Cambodia, Nazaruddin rented a plane to go to Dominique via Madrid before he entered Colombia’s capital Bogota. He then went to Cartagena,” Anton said. Anton said that Nazaruddin left Cambodia on July 23 and probably arrived in Colombia a day later. “Our team has followed him for a long time and cooperated with local police in the country to arrest Nazaruddin, “Anton said. “The National Police chief also sent a letter to the Interpol chief in Lyon, asking for help to arrest Nazaruddin [in Cartagena].” Anton said his team is now coordinating with the Colombian police to bring Nazaruddin home. “We hope that the police there will decide to deport Nazaruddin,” he said. (rcf)   Police Confirm Nazaruddin Arrest Farouk Arnaz | August 08, 2011 Indonesian police have confirmed that a man arrested by Interpol in Colombia, South America, is indeed fugitive lawmaker Muhammad Nazaruddin. National Police spokesman Insp. Gen. Anton Bachrul Alam said a fingerprint test had confirmed that the man matching Nazaruddin’s description who was taken into custody in the resort city of Cartagena on Sunday was indeed one of Indonesia’s most wanted men. Anton said a team of five police officers, one immigration official and an Interpol representative had been tracking Nazaruddin, who has been named a suspect by the Corruption Eradication Commission (KPK) for his alleged role in a high-profile graft scandal involving the construction of the athletes’ village for the Southeast Asian Games. Nazaruddin has implicated others in the scandal that has badly tarnished the ruling Democratic Party led by President Susilo Bambang Yudhoyono. Anton said Nazaruddin had traveled to Singapore, Malaysia, Vietnam and Cambodia before chartering a private jet and flying to Bogota, the capital of Colombia, via Madrid and the Dominican Republic. He said the fugitive was accompanied by a number of unknown companions, though one was believed to be his wife. Anton said a second team was being sent to Colombia, including representatives from the police, KPK, Ministry of Justice and Human Rights and the Foreign Ministry. He said he hoped Nazaruddin could be immediately deported.   Menangkap Nazaruddin? Sabar Ya... Senin, 25 Juli 2011 JAKARTA, KOMPAS.com — Kepolisian meminta kepada publik agar bersabar menunggu penangkapan buronan Muhammad Nazaruddin, tersangka kasus suap wisma atlet SEA Games di Palembang. Pasalnya, Nazaruddin berada di negara lain. "Kami enggak bisa langsung menangkap. Kami perlu bantuan polisi negara lain. Bantuan ini yang kami atur betul sehingga mereka mau bantu. Makanya sabar. Kami ingin cepat, jadi beban kami kan," kata Kepala Divisi Humas Polri Irjen Anton Bachrul Alam di Mabes Polri, Senin (25/7/2011). Seperti diketahui, berbagai pihak mendesak Polri selaku institusi yang diperintahkan Presiden segera membawa Nazaruddin ke Indonesia untuk diadili. Anton mengatakan, pihaknya sudah tahu lokasi keberadaan Nazaruddin. Tentu, dia tak bersedia menyebut lokasi yang bersangkutan dengan alasan akan mengganggu kerja tim. Anton juga tak mau menjawab ketika ditanya apakah Nazaruddin selama ini berpindah-pidah. Mengenai dugaan Nazaruddin menggunakan paspor palsu, Anton mengatakan, pihaknya belum dapat memastikan. Hal itu dapat diketahui setelah mantan Bendahara Umum Partai Demokrat itu tertangkap. "Nanti kalau sudah ketangkep, kami akan tahu ke mana-mana dia pergi, menggunakan paspor apa," ucapnya. Seperti diberitakan, Nazaruddin sudah kabur ke luar negeri sekitar dua bulan. Dia diketahui pernah berada di Singapura dan Vietnam. Terakhir, buronan Interpol itu disebut-sebut berada di Argentina setelah kemunculannya melalui skype.     Sea Games Graft and Nazaruddin: A Refresher Jakarta Globe | July 05, 2011 The graft case linking errant Democrat lawmaker Muhammad Nazaruddin to corruption surrounding the construction of the athletes’ village in Palembang for November’s Southeast Asian Games has gripped the nation's attention for three months now. The case started with the arrest of Nazaruddin's assistant, Mindo Rosalina Manulang, at the lawmaker's company, Anak Negeri, in April. Also arrested were Sports Ministry secretary Wafid Muharam and Muhammad El Idris, an executive from private construction firm Duta Graha Indah, which had won the contract to build the athletes’ village in Palembang, South Sumatra. Envelopes full of cash in different currencies were found inside Wafid’s office, and Rp 3.2 billion ($375,000) in checks from Duta Graha to Wafid were also seized. In the days following the arrest, Rosalina's lawyer, Kamaruddin Simanjuntak, alleged that Nazaruddin took Rp 25 billion for mediating between the government and the winning contractor, and that Democrat legislator Angelina Sondakh took a 13 percent cut to provide kickbacks for her colleagues at the House of Representatives’ Commission X, overseeing sports and youth affairs. April 29: Rosalina withdrew her statement, saying that it was made by Kamaruddin and she did not have any knowledge about it. She fired the lawyer the next day. May 10: The Democratic Party questioned Nazaruddin and Angelina. The party said they did not find any evidence to support Rosalina's claims about the lawmakers' involvement in the graft. May 23: Nazaruddin left Indonesia to allegedly seek medical treatment in Singapore for a heart condition. House Speaker and Democrat Marzuki Alie said the party knew and had given him permission to leave. May 24: Immigration officials imposed a travel ban on Nazaruddin, hours after he boarded a flight to Singapore. June 1: Nazaruddin wrote on a personal blog that accusations toward him were "part of a big scenario to bring down the party." The blog was taken off the Internet shortly thereafter. The month of June also saw Nazaruddin accusing Democrat officials of being party to bribery case, claiming they had knowledge of the graft and had received portions of the money. June 30: The Corruption Eradication Commission (KPK) named Nazaruddin as a suspect in the Sea Games graft case. July 4: The KPK sent a request to the Immigration Office to revoke Nazaruddin's passport which would render him stateless, and thus any country he was found in would have to deport him. July 5: The Singapore government announced that the Democratic lawmaker was no longer in Singapore, and had left weeks earlier. A spokesman for the country's Foreign Ministry also alleged that Indonesian authorities had been informed of Nazaruddin's departure.   KPK Bentuk Tim Validasi Telusuri Pernyataan Nazar Senin, 25 Juli 2011 JAKARTA, KOMPAS.com — Komisi Pemberantasan Korupsi membentuk tim khusus untuk menguji kebenaran pernyataan M Nazaruddin, tersangka kasus dugaan suap pembangunan wisma atlet SEA Games Palembang, Sumatera Selatan. Hal itu disampaikan Juru Bicara KPK Johan Budi di Kementerian Hukum dan Hak Asasi Manusia, Jakarta, Senin (25/7/2011). Menurut Johan, tim akan menelusuri dugaan keterlibatan sejumlah nama yang disebut Nazaruddin, seperti tiga anggota DPR, yakni Angelina Sondakh (Fraksi Partai Demokrat), Mirwan Amir (Fraksi Partai Demokrat), dan Wayan Koster (Fraksi PDI Perjuangan). Juga dugaan keterlibatan Ketua Umum Partai Demokrat Anas Urbaningrum. "Terkait informasi dari Nazar, kami akan membentuk tim untuk memvalidasi," kata Johan. Menurut dia, informasi dari Nazaruddin itu akan disesuaikan dengan bukti atau fakta yang dimiliki KPK. Namun, Johan belum dapat memastikan kapan tim validasi bentukan KPK itu mulai bekerja.   Wawancara dengan Nazaruddin: Anas Otak Besarnya! Selasa, 19 Juli 2011 JAKARTA, KOMPAS.com — Dalam wawancaranya dengan Metro TV, Selasa (19/7/2011) petang, mantan Bendahara Umum DPP Partai Demokrat, M Nazaruddin, kembali melontarkan "serangan" terhadap Ketua Umum DPP Partai Demokrat Anas Urbaningrum. Nazaruddin mengatakan, otak besar di balik seluruh "kekisruhan" yang terjadi di Partai Demokrat saat ini adalah Anas. "Anas otak besarnya. Memang dia aktornya," ujar Nazaruddin, yang kini berstatus tersangka dalam kasus dugaan suap proyek pembangunan wisma atlet SEA Games. Ketika ditanyakan lebih lanjut mengapa ia menyebut Anas sebagai otak besar kasus ini, ia menjawab singkat, "Masa saya merekayasa. Saya menceritakan fakta," katanya Nazaruddin juga sempat mengungkapkan bahwa ada kesepakatan dan skenario yang dibuat Anas agar kasus yang terungkap saat ini hanya berhenti di Nazaruddin. Pria yang masih berstatus anggota Komisi VII itu menjadi buronan internasional setelah ditetapkan Komisi Pemberantasan Korupsi (KPK). Pada 23 Mei 2011, ia bertolak ke Singapura dengan alasan melakukan pengobatan. Saat ini, ia mengaku masih berada di luar negeri. "Ya, saya masih di luar negeri. Bagaimana saya mau pulang kalau semuanya direkayasa Anas Urbaningrum," kata Nazaruddin. Ia juga mengungkapkan, ada aliran uang kepada Anas. Puluhan miliar, kata Nazaruddin, digelontorkan untuk pemenangan Anas dalam Kongres Pemilihan Ketua Umum DPP Demokrat tahun 2010. "Dari proyek Ambalang, untuk pemenangan Anas Rp 50 miliar. (Uang) dibawa dengan mobil boks yang dibawa Ibu Yuliani, dan Ibu Yuliani sekarang dilindungi Anas," katanya. Selain itu, kata Nazaruddin, ada pula uang sebesar Rp 35 miliar yang digunakan untuk pemenangan Anas. "Semua tahu, uangnya dari proyek mana, dari siapa ngambil-nya," ujar Nazaruddin

Nazaruddin Drowns Out SBY's 'Come Home' Plea Arientha Primanita & Febriamy Hutapea | July 23, 2011 Just as President Susilo Bambang Yudhoyono broke his silence on the Muhammad Nazaruddin case on Friday and urged the rogue former Democratic treasurer to “come home,” his plea was drowned out by a barrage of excuses and accusations by the fugitive himself in another television interview. As if to taunt his former boss, Nazaruddin appeared in a recorded Skype conversation to further detail his accusations against his party. Wearing a straw hat and speaking from what appeared to a bare bungalow room, he detailed the many accusations he had made against a host of democrats, including chairman Anas Urbaningrum. But he also startlingly claimed he had recently escaped an assassination attempt by two men. “There are two men after me and I have been shot at. ... The shot almost hit my head, but thank God I escaped. There are also [people] guarding me,” he said in the interview with freelance journalist Iwan Piliang broadcast on Metro TV on Friday evening. Nazaruddin, who went underground after leaving for Singapore on May 23, insisted he really was overseas and played a phone ringtone that many had heard in the background of an interview aired on television earlier this week. Rumors had swirled after the Tuesday broadcast that the sound had been a jingle from an Indonesian bakery vendor, meaning Nazaruddin might in fact be in the country. He wanted the Corruption Eradication Commission (KPK) to probe two graft cases linked to sports projects from which he said Anas and many other Democrats had received money. “I really am abroad. I will return if the KPK opens up the case of the athletes’ village and the Hambalang stadium,” he said. He provided more details of his accusation that Anas’s bid for the chairmanship of the Democratic Party had been funded by money from the state budget. “The public knows Anas did not have the backing of SBY,” he said of the situation in the run-up to the election of the party chair. “All the money was collected from the state budget fund,” he said, detailing that the money came from contributions linked to the distribution of several construction projects, including the athletes’ village in Palembang and the Hambalang sport stadium in Bogor. He also repeatedly waved a flash drive that he claimed contained a detailed list of who received money, how much and from whom during the party congress when the election took place. “Anas won because of money, and this cannot be denied,” he said. Anas was no longer the same person he had known and helped since 2004. “I feel hurt, he has destroyed my family. I have enjoyed not a single rupiah from state budget money, or what’s more, allocated to the athletes’ village. Not a single rupiah,” he said. Yudhoyono had earlier in the day sought to salvage his party’s image ahead of a national coordination meeting in Sentul City this weekend by calling on Nazaruddin to “come home to the country and as a good citizen please follow legal process with the KPK and the police.” Yudhoyono, the Democratic Party’s patron, said Nazaruddin’s many statements in the media implicating various Democrats and anti-corruption officials in graft scandals had left party members confused and suspicious of one another. Anas has denied the allegations and said the attacks were part of a larger game by political players seeking to discredit him. He had said “certain groups are using Nazaruddin to commit a character assassination” against him, but did not elaborate.   Nazaruddin, Come Home: Yudhoyono Arientha Primanita | July 22, 2011 President Susilo Bambang Yudhoyono finally broke his silence on Friday on the Muhammad Nazaruddin’s brouhaha and asked the errant lawmaker to come back home. In remarks after Friday prayers, Yudhoyono said he was speaking as a president whose job was to enforce the law, and also as the head of his party's advisory board chairman, where graft suspect Nazaruddin used to serve as treasurer before being fired and fleeing for parts unknown. “Come home to Indonesia, Nazaruddin,” Yudhoyono said at the State Palace. “It is hard for us too when we all don’t know where Nazaruddin is and with whom and what he is doing. With whom he has been doing his internal communications.” Yudhoyono said that Nazaruddin's many statements in the media implicating various Democrats and anti-corruption officials in graft scandals had left party members confused and suspicious of one another. “Come back to the country and as a good citizen please follow the legal process in the KPK [Corruption Eradication Commission] and the police,” he said. Yudhoyono added that Indonesia was ruled by a transparent legal system that operated under the presumption of innocence. He said that Nazaruddin's return was necessary to clear up the current public relations nightmare that the lawmaker's flight and accusations had ignited, and that any information gleaned from him would help to clean up the party's image. Yudhoyono added that if there were Democratic Party members violating the faction's code of ethics, then sanctions would be handed out. “Don't let a small error ruin everything,” Yudhoyono said. Meanwhile, Yudhoyono's son and the secretary general of the Democratic Party, Edhie Baskoro Yudhoyono, said that the party would use the two-day national coordination meeting in Sentul, West Java, this weekend to enforce the party's commitment to upholding the law. “There will be a pledge of commitment to all members of the party to uphold the law and fully support the government's efforts in corruption eradication,” Edhie, also known as Ibas, told state-run news agency Antara. Heavy police presence was seen at the meeting's venue, Sentul International Convention Center in Sentul City, Bogor, on Friday. Thousands of banners with the pictures of the party's general chairman, Anas Urbaningrum, and Yudhoyono could be seen along the road leading to Sentul City.   Nazaruddin shocks late-night TV viewers Mariel Grazella, The Jakarta Post, Jakarta | Fri, 07/22/2011 10:38 PM M. Nazaruddin dropped more bombs on the Democratic Party late on Friday night by appearing in a televised interview for the first time since his disappearance overseas, during which he confirmed his location and reiterated his accusations against party members. “I am overseas,” Nazaruddin said, wearing a straw hat during the interview to dispel rumors that he had slipped back to the country. Nazaruddin had granted an interview via an Internet video call to Iwan Piliang, a fellow Democratic Party member, on Thursday night. The interview was broadcast by MetroTV at around 9:30 p.m. on Friday. During the interview, which took place in what appeared to be a room with cream-colored curtains on one wall and a red painting on the back wall, Nazaruddin confirmed that he was behind a series of BlackBerry messages. The messages accused party members of corruption in various government-funded projects, including an athletes’ village built in Palembang, South Sumatra, for the 2011 SEA Games. Party members previously raised doubts that Nazaruddin was behind the messages Nazaruddin then displayed a USB memory drive and a CD, saying they contained evidence of the various acts of corruption committed by other party members. The CD, he said, contained a CCTV recording of Chandra M. Hamzah's visit to Nazaruddin's house. “I have here the CD recording of when Chandra came to my house,” he said. Nazaruddin previously said that Corruption Eradication Commission deputy Chandra M. Hamzah had accepted bribes in the case.   National I dared not ask Nazaruddin's location: Iwan Mariel Grazella, The Jakarta Post, Jakarta | Fri, 07/22/2011 10:48 PM A | A | A | Iwan Piliang, the man who interviewed graft fugitive suspect M. Nazaruddin, said that he dared not ask Nazaruddin where he was hiding. According to Iwan, he wanted to ask, but he was worried that Nazaruddin would end the interview if the question was raised. “I purposely did not ask,” he said during an interview with MetroTV. MetroTV broadcast the interview late on Friday night, though Iwan had conducted the interview via an Internet video call on Thursday night. Iwan added that he was “shocked” that Nazaruddin had granted such an interview because he had known Nazaruddin as a person who “did not understand technology”. “A foreign voice with a Latin American accent was inadvertently heard from behind Nazaruddin,” Iwan said, adding that the unidentified source of the voice was hidden off camera. Iwan also said that he was ready to be questioned by the police about the Internet interview. “I am ready to help if I am asked to,” he said.

No. 47/XI/July 20-26, 2011 Cover Story Jump-Start Politics. Even though Yudhoyono has 'secured' Anas Urbaningrum's position in the party, an extraordinary congress could derail all plans. Political opponents are working to uncover the misdeed of their party chairman, reopening the issue of money politics during the party's congress last year. The 'Nazaruddin Disclosures' have jogged the memory of Democrat Party administrator Rahmad Hasibuan. He now recalls that money was given to participants of the party's congress in Bandung last year. "Nazaruddin's claims are true," said Rahmad, who heads the forestry affairs department in the party's central executive board. The Democrats emerged as a winner in the 2009 legislative election. Muhammad Nazaruddin, the party's former treasurer, fled Indonesia after he was indicted by the Corruption Eradication Commission (KPK) for his involvement in a number of corruption cases. From his hiding place overseas, he opened a Pandora's box which is likely to drag down his colleagues, in a political scandal which took place at last year's congress. He admitted to taking the money from a number of government projects and handing out US$20 million to participants at the congress. At the congress to elect the party's new chairman, Rahmad was a supporter of Marzuki Alie, the strongest competitor running against Anas Urbaningrum. At that time, he was the Democrat Party's administrative secretary for North Sumatra. He feared, even then, that a bribery-tainted election would augur badly for the party.Rahmad said that Nazaruddin's statement about money politics at the congress was not news to some people inside the party. A few days after the congress ended, Marzuki's supporters formed a team to investigate suspected bribery. Some regional party officials who were seen accepting handouts were questioned, not denying their actions. Some said they were offered money but did not accept it. The team submitted this evidence of cheating to Susilo Bambang Yudhoyono (SBY), as the head of the Democrat Party Advisory Council.The use of money to win votes, said Rahmad, ignored Yudhoyono's direct orders. At the congress, Yudhoyono made at least two speeches reminding the participants not to resort to using money. Yet, Rahmad saw regional party officials selling their votes for US$4,000, US$6,000, or US$10,000 per person. Tongam Tobing, who at that time was chairman of the party's North Tapanuli branch, verified Rahmad's story. He said he was involved in gathering data on the money trail. Chaeril Ahmadsyah, who had come as the Bima branch chairman in West Nusa Tenggara, supported Rahmad's claims. Democrat Party Secretary for East Nusa Tenggara (NTT) Jonatan Kana said that he did not receive any money for supporting Anas. However, he said he received six BlackBerry phones which were handed out after Anas won. "Maybe it was a way to say thank-you," he said. One senior politician talked about all the fuss over the distribution of funds at that time. Money had been distributed before the voting. These payouts were able to reduce support for Marzuki, who had already been working on regional party officials when he was the party's secretary-general for the four years before his resignation in 2009. Money was also distributed before the second round of voting, in which only two candidates remained: Anas Urbaningrum and Marzuki.Operators passed out money in US dollars, including slipping it into the socks of participants. When the second round of voting took place, participants were surprised by the arrival of the police's bomb squad. Two travel bags had been found at the door to the hotel. Later, the police's official explanation was that the suspicious items were "empty bags belonging to a salesman." However, it was later confirmed that those bags were full of money which had been distributed before the election. One party official for West Java admitted to accepting US$3,000 at the congress. "It was to reimburse our expenses," said the local politician who wished to remain anonymous. The Democrat Party congress ended up successfully installing Anas as the chairman, a reversal of the popular prediction that Andi Mallarangeng would win. Despite the support of Yudhoyono-through the presence of Edhie Baskoro alias Ibas on his campaign team-Andi was eliminated in the first round. He only received 82 of the 530 votes up for grabs. In the following round, Anas beat Marzuki In a telephone interview with Tempo, Nazaruddin posed the question: "[Would it have been] possible to defeat SBY (who supported Andi Mallarangeng) without using money? Who says that the winner at that time was democracy? Money won." Some of Anas's supporters said that money for Anas's victory was raised through contributions. Angelina Sondakh, for instance, said she raised Rp200 million for the team working for Anas, the former chairman of the Muslim Students Association (HMI). l l l Today, old wounds have been reopened. Marzuki's supporters are now acting, both in the central and regional divisions. They are hooking up with old players who have since been pushed out of the party organization. With the Nazaruddin scandal exposed, implicating Anas, they are hoping that Yudhoyono will act on the findings of what happened at the congress. Nevertheless, Marzuki's supporters realize that the revelations should not necessarily mean reversing the results of the congress. They did ask that some names be placed on a black list of members, should any one of them decide to run. The names now in the spotlight-most of whom are now being mentioned in connection with the Nazaruddin case-were given key positions, thanks to Anas's chairmanship. "They destroyed the party," commented one Marzuki supporter. This group has sworn their loyalty only to Yudhoyono. For this reason, they also suspect that Anas had secretly begun building a network and a team in preparation for 2014. One indication of this is the establishment of the 'Friends of Anas' communities in various provinces. Anas's 'challenge' was raised by the opposition groups. They intentionally publicized one event in which Anas challenged Yudhoyono during the election of the North Sulawesi party branch chairman. Opened by Anas, who had arrived with Democrat Party Deputy Chairman Jhonny Allen Marbun and Ibas, the April 7 event was supposed to be a regional consultation. But it became disorderly. A number of party officials protested the election of Manado Mayor Vicky Lumentut, who was supported by Anas. They reasoned that Vicky was still a civil servant. Most importantly, they knew that SBY backed North Sulawesi Governor Sinyo Harry Sarundajang. Top party officials revealed that, in order to make sure his order was carried out, Yudhoyono had even sent a special envoy to Manado: Cornel Simbolon. In addition to being Head of the Democrat Party's Department of Political and Security Affairs, Simbolon was a fellow graduate of Yudhoyono at the Military Academy. But Anas still persisted in supporting Vicky. When asked to confirm this, Cornel replied: "It was not like that." It can be concluded that the tight competition for the party chair did not end at the congress. The entrenchment of the camps is evident from the attacks coming from party figures after the Nazaruddin scandal was exposed. Seemingly, they failed to notice the directive forbidding them to attack one another, issued by the party's chairman and secretary-general-Anas and Ibas. Aware that he was sailing over coral reefs, Marzuki entered the fray. From Moscow, Russia, where he was visiting as the House of Representatives (DPR) speaker, Marzuki sent Yudhoyono a text message.It brought to SBY's attention, "the weakness of leadership and ineffectiveness of party management." He also asked SBY "to act firmly to save the party." To make sure he understood his position, Marzuki, added: "Our loyalty is only one, to the Kawanbin (Chairman of the Advisory Council)." He also sent the message to all of the other 31 members of the council. The party's division appears to be growing wider. On Monday last week, Yudhoyono attempted to put out the fires. Accompanied by Anas and Marzuki, he spoke from his home in Puri Cikeas, Bogor. He said that there was no plan to hold an extraordinary congress at the Democrat Party's national coordination meeting next week. So, for the moment, Anas's position seems secure. However, this is not how his opponents see the situation. They feel that like a typical Javanese leader, Yudhoyono was just speaking graciously and diplomatically. "We see the statement as aimed at Anas, who is seen to have been too aggressive in acquiring power." Anas has emphatically denied making any preparations for 2014. "The time is for noon prayers, it's not the right time for mid-afternoon prayers," speaking allegorically. Y. Tomi Aryanto, Anton Septian (Jakarta), Yohanes Seo (Kupang), Angga Sukma Wijaya (Bandung) Copyright @ tempointeractive Tempo Interaktif http://www.tempointeractive.com/majalah/free/cov-1.html    Diminta Pulang SBY, Ini Jawaban Nazaruddin Jum'at, 22 Juli 2011 | 21:11 WIB TEMPO Interaktif, Jakarta - Bagaimana sikap mantan Bendahara Umum Partai Demokrat Muhammad Nazaruddin mendengar himbauan Presiden Susilo Bambang Yudhoyono yang juga Ketua Dewan Pembina Partai Demokrat agar dirinya pulang ke tanah air? " Saya akan ikuti perintah Beliau, Pak SBY" kata Nazaruddin dalam pesan singkatnya kepada Tempo yang menghubunginya, Jumat 22 Juli 2011 malam. Meski begitu, politisi Partai Demokrat ini mengajukan syarat. Yakni, orang-orang yang dia tuding terlibat dalam kasus ini, harus segera diusut Komisi Pemberantasan Korupsi. " Setelah orang yang bersalah sebenarnya dan bos yang atur ini proyek ditetapkan sebagai tersangka sama KPK" kata Nazaruddin. Ketika ditanya siapa 'bos' yang mengatur proyek itu, Nazaruddin menyebut. " Itu Anas. Saya baru percaya hukum KPK," kata Nazar. Siang tadi, di halaman Istana Kepresidenan, Presiden SBY yang juga Ketua Dewan Pembina Partai Demokrat meminta Nazaruddin menyerahkan kepadanya semua informasi yang dimiliki tentang persoalan internal partai itu. SBY juga Nazaruddin pulang ke tanah air untuk menghadapi proses hukum, dibanding menyebar informasi yang belum dapat diuji kebenarannya di berbagai media massa. Menurut SBY, tudingan Nazaruddin dalam pelariannya telah membuat keresahan dan menimbulkan saling curiga. "Kembalilah Nazaruddin ke Indonesia, ke Tanah Air, kembalilah," kata SBY. "Sulit bagi kita ketika kita semua tidak tahu di mana Nazaruddin berada, dengan siapa yang bersangkutan, apa saja yang dilakukan selama ini, komunikasi internalnya dengan siapa." SBY meminta Nazaruddin juga menyerahkan diri ke Komisi Pemberantasan Korupsi (KPK) untuk menjalani proses hukum. KPK, kata dia, akan kesulitan memproses kasus ini jika Nazaruddin tidak kembali. "Silakan dijelaskan semua sangkaan dan tuduhan itu karena proses hukum akan berjalan secara transparan dan akuntabel," katanya. Nazar ngotot, penonaktifan Anas adalah salah satu syarat yang diajukan. Ia menilai syarat itu adalah solusi terbaik guna menyelamatkan wajah partai. “Secara pribadi jangan nanti merusak citra partai Demokrat dan mengganggu stabilitas pemerintahan. Itu yg terbaik harus di lakukan pak SBY,” ujarnya. SUKMA N LOPPIES | RIKY FERDIANTO     Will Nazaruddin Scandal Sink the Dems in 2014? Markus Junianto Sihaloho | May 30, 2011 The Democratic Party remains the most popular in the country, according to a new survey, but an analyst warns it still has to deal with the fallout from an ongoing corruption scandal. The poll, released by the Indonesian Survey Institute (LSI) on Sunday, showed that 18.9 percent of respondents would vote for the Democrats if an election were held this month. However, LSI director Syaiful Mujani said this was down from the 20.85 percent it won in the general elections in April 2009. By contrast, he said, the opposition Indonesian Democratic Party of Struggle (PDI-P) had improved in the same period from 14.15 percent to 16.7 percent, and would likely keep growing in popularity as the 2014 elections loomed. Tommy Legowo, an analyst from the group Concerned Citizens for the Indonesian Legislature (Formappi), said that given their slender lead, the Democrats should be mindful of the impact to their image that the case of their former treasurer, Muhammad Nazaruddin, would have. The party last Monday dismissed him as treasurer in a move widely seen as an attempt to contain the fallout from the litany of graft cases in which he has been implicated. But the day after, the lawmaker fired back, leveling accusations at a number of high-ranking Democrat officials. When it was revealed last Thursday that Nazaruddin was in the fugitive haven of Singapore, Democrat officials were initially dismissive, saying he had been given permission to go and that he had the right to leave as a travel ban had not been imposed when he left. But on Sunday, party officials also ordered the controversial politician to return from Singapore to face questioning by the Corruption Eradication Commission (KPK). Tommy said that while the Democrats could fire Nazaruddin from the party outright, that would not be enough to halt the bad press. He warned that Nazaruddin was likely preparing a slew of allegations against other Democrats if he was left out to dry by the party. “Nazaruddin might feel he’s being backstabbed, because he did provide financial help to the party and some high-ranking party officials,” Tommy said. “He might reveal more scandals, which wouldn’t be good for the party.” On Saturday, cellphone text messages purporting to be from Nazaruddin were sent out to several journalists and politicians, which claimed Nazaruddin had been set up and would wreak vengeance from Singapore, including spilling the beans on scandals involving President Susilo Bambang Yudhoyono. While Nazaruddin has denied sending the messages, Tommy said it highlighted the difficulty faced by the party and president in containing the controversy. “SBY must be firm in saying that this time he can’t please all groups,” he said. “Someone must be sacrificed to save the party’s image.” Senior party members met on Saturday night at Yudhoyono’s residence in Bogor to discuss the threatening text messages. Andi Nurpati, the party’s public communications head, denounced the allegations made in the messages as “lies” and “character assassination.” One claim was that some party elites were implicated in a same-sex scandal, while another was that 19 million votes were manipulated in the 2009 elections. But she acknowledged that the party had been taken by surprise by the entire scandal.   Nazaruddin: A Chronology of Key Events in the Unfolding Bribery Scandal Last Updated on Monday, 04 July 2011 16:14 Sunday, 03 July 2011 2 Theindonesiatoday.com - Detik.com has just published a chronology of key events in the unfolding bribery scandal implicating some politicians of President SBY's Demokrat Party, according to BlackBerry Messenger from former treasurer Muhammad Nazaruddin, who is suspect in one of the cases. Nazaruddin reveals the following: 1) January 2010: A meeting with Andi Mallarangeng (minister of sports and youth affairs), Angelina Sondakh (lawmaker), Mahyudin, and Nazaruddin. Andi explained about his ministry's proposal for State budget of Rp2.3 trillion to accelerate the development of SEA Games infrastructures. Andi called in the ministry's secretary Wafid Muharam (now a suspect) and ordered him to help Angelina and 'friends'. 1) January 2010: A meeting with Andi Mallarangeng (minister of sports and youth affairs), Angelina Sondakh (lawmaker), Mahyudin, and Nazaruddin. Andi explained about his ministry's proposal for State budget of Rp2.3 trillion to accelerate the development of SEA Games infrastructures. Andi called in the ministry's secretary Wafid Muharam (now a suspect) and ordered him to help Angelina and 'friends'. 2) February 2010: A meeting with Wafid, Angelina, Mirwan Amir (lawmaker), and Anas Urbaningrum (then chairman of Demokrat Faction, candidate for Demokrat chairman). One businessman attended the meeting named Mahfud, who is a friend of Anas and Nazaruddin. We discussed details of Ambalang Stadion project of Rp1.2 trillion, sports supporting facilities of Rp75 billion, athlete dormitory project in Palembang Rp200 billion, and a project worth Rp200 billion in West Java. 3) February 3rd, 2010: A meeting at Japanese restaurant, Arcadia, Senayan, Jakarta. Attending the meeting were Angelina, Mirwan Amir, Nazaruddin, Mahyudin, Andi Mallarangeng, Wafid, and one new deputy at sports ministry. "We agreed on technicalities. Wafid would execute with Angelina and Mirwan. I didn't participate. But I was informed that Rp9 billion would be taken from the dormitory project and Rp50 billion from the Ambalang project." "Rp9 billion for DPR (House of Representatives), Rp7 billion for Anas campaign for chairmanship race." "From the Ambalang project, the funds allocated to be distributed were Rp100 billion, of which Rp30 billion for lawmakers through a businessman named Mahfud, a friend of Anas, Rp50 billion for Anas campaign in the Congress, and Rp20 billion for Anas Consultant Team named Ifang." Anas Urbaningrum had denied all the allegations mounted by Nazaruddin, who is now living in Singapore. Earlier on Saturday, the anti-money laundering agency PPATK disclosed that it finds hundreds of suspicious transactions related to Nazaruddin. (Theindonesiatoday.com) Indonesia Breaking News www.theindonesiatoday.com   Nazaruddin Reveals Anas Money Politics, Tempo Reports | Photo:Demokrat Nazaruddin Reveals Anas Money Politics, Tempo Reports Monday, 11 July 2011 06:49 Written by Pepe Goldman Theindonesiatoday.com Fugitive lawmaker Muhammad Nazaruddin revealed more details of money politics at Demokrat Party, including its chairman Anas Urbaningrum, in a telephone interview with Tempo magazine. "I gave each of DPC (regional branch of Demokrat Party) between US$10,000 to US$40,000," Nazaruddin said regarding money spent in the election of Anas as chairman of Demokrat in a Congress last year. "Don't be surprised, total funds to ensure Anas victory was US$20 million," the Demokrat lawmaker and former treasurer continued. To add legitimacy to the report, due to doubts over allegations mounted by Nazaruddin through BlackBerry messengers in the past few weeks, Tempo magazine insisted a telephone interview with Nazaruddin, whose whereabouts is not clear. Nazaruddin told Tempo that part of political financing of Anas was sourced from PT Anugerah, which is at the center of bribery scandal investigation at the Corruption Eradication Commission (KPK). PT Anugerah is partner of PT Duta Graha Indah (DGIK) Tbk in the controversial athlete dormitory project. "I heard he took US$1 million (from Anugerah) in January, and asked for US$1 million in March to Yulianis (one of Nazaruddin's staffs)," Nazaruddin said. But Anas dismissed all Nazaruddin's allegations. "What I heard, he (Nazaruddin) got huge profit from the Congress," Anas is quoted by Tempo. (Theindonesiatoday.com)   Nazaruddin Drags Other Politicians in Bribery Case Friday, 17 June 2011 09:46 Written by Haryanto Suharman Theindonesiatoday.com - Muhammad Nazaruddin, former treasurer of Demokrat Party, has pointed his fingers to other politicians behind the athlete dormitory bribery scandal. Nazaruddin, who refused to show up in three summons by the Corruption Eradication Commission, has apparently sent information to some reporters through BlackBerry Messenger (BBM) yesterday. Nazaruddin said based on testimony of Angelina Sondakh, Demokrat legislator, to the fact finding team from Demokrat Party, the money has been disbursed to Angelina Sondakh (Demokrat), Mirwan Amir (Demokrat), and Wayan Koster (PDI-P). All of them were members of budget committee of the House of Representatives (DPR), which endorsed the budget for athlete dormitory project. Nazaruddin, however, provided no information about involvement of PT Anak Negeri, a company reportedly he owned, in the project. Lawyer of Mindo Rosalina Manulang, former director of PT Anak Negeri, had recently admitted that Nazaruddin was Rosa's boss. KPK has so far named three suspects in the case. They are Rosa, Wafid (secretary to ministry of sports and youth affairs), and M El Idris (director of PT Duta Graha Indah Tbk, EPC contractor of the project). ( haryanto@theindonesiatoday.com)   Yudhoyono rapped for comments on media Adianto P. Simamora, The Jakarta Post, Jakarta | Wed, 07/13/2011 12:05 PM The Press Council on Tuesday criticized President Susilo Bambang Yudhoyono for blaming the media for relying on text messages as news sources in the graft scandals surrounding his political party. Text messages are a valid source for news stories as long as the media meets principles of covering both sides, council deputy chairman Sabam Leo Batubara said. However, he added, media outlets should verify all allegations made in text messages. “Information for the media could come from many sources, including text messages. It is a matter of technology,” Press Council member Agus Sudibyo told the The Jakarta Post on Tuesday. “It is the right of media outlets to use text messages as the source of a news story. The media outlet knows whether the source is reliable,” Batubara said. “Of course, the media outlet is responsible for verifying all allegations made in the text message.” Batubara said Yudhoyono should use existing mechanisms to settle disputes over news stories. Under the mechanism, people or groups who feel disadvantaged by a news story have the right to seek clarification directly from the media outlet. “If that fails, the case can be brought to the Press Council. The final option would be legal recourse. Such mechanisms have been effective so far,” he said. Batubara said Yudhoyono’s statements at a press briefing on Monday escalated the issue as he did not directly blame any specific media outlet. “I was surprised by Yudhoyono’s generalization that all media outlets did wrong by publicizing the text messages allegedly sent by Nazaruddin.” At the press briefing, Yudho-yono said the media continued to discredit the Democratic Party by basing reports only on text messages purportedly sent by Nazaruddin, the former treasurer of the Democratic Party and a fugitive graft suspect. “I don’t understand this. The news stories’ sole cited source are text messages, which then make headlines. The messages allegedly sent by Nazaruddin — which has not been proven — were publicized to cast a bad light on the Democratic Party,” Yudhoyono said. Nazaruddin fled to Singapore in May following growing allegations against him implicating him of involvement in a graft scandal surrounding a Southeast Asian (SEA) Games construction project. Since leaving Indonesia, the media has received numerous text messages from a person claiming to be Nazaruddin. The messages alleged that the scandal also involved other high-ranking members of the Democratic Party.

Will Nazaruddin Scandal Sink the Dems in 2014? Markus Junianto Sihaloho | May 30, 2011 The Democratic Party remains the most popular in the country, according to a new survey, but an analyst warns it still has to deal with the fallout from an ongoing corruption scandal. The poll, released by the Indonesian Survey Institute (LSI) on Sunday, showed that 18.9 percent of respondents would vote for the Democrats if an election were held this month. However, LSI director Syaiful Mujani said this was down from the 20.85 percent it won in the general elections in April 2009. By contrast, he said, the opposition Indonesian Democratic Party of Struggle (PDI-P) had improved in the same period from 14.15 percent to 16.7 percent, and would likely keep growing in popularity as the 2014 elections loomed. Tommy Legowo, an analyst from the group Concerned Citizens for the Indonesian Legislature (Formappi), said that given their slender lead, the Democrats should be mindful of the impact to their image that the case of their former treasurer, Muhammad Nazaruddin, would have. The party last Monday dismissed him as treasurer in a move widely seen as an attempt to contain the fallout from the litany of graft cases in which he has been implicated. But the day after, the lawmaker fired back, leveling accusations at a number of high-ranking Democrat officials. When it was revealed last Thursday that Nazaruddin was in the fugitive haven of Singapore, Democrat officials were initially dismissive, saying he had been given permission to go and that he had the right to leave as a travel ban had not been imposed when he left. But on Sunday, party officials also ordered the controversial politician to return from Singapore to face questioning by the Corruption Eradication Commission (KPK). Tommy said that while the Democrats could fire Nazaruddin from the party outright, that would not be enough to halt the bad press. He warned that Nazaruddin was likely preparing a slew of allegations against other Democrats if he was left out to dry by the party. “Nazaruddin might feel he’s being backstabbed, because he did provide financial help to the party and some high-ranking party officials,” Tommy said. “He might reveal more scandals, which wouldn’t be good for the party.” On Saturday, cellphone text messages purporting to be from Nazaruddin were sent out to several journalists and politicians, which claimed Nazaruddin had been set up and would wreak vengeance from Singapore, including spilling the beans on scandals involving President Susilo Bambang Yudhoyono. While Nazaruddin has denied sending the messages, Tommy said it highlighted the difficulty faced by the party and president in containing the controversy. “SBY must be firm in saying that this time he can’t please all groups,” he said. “Someone must be sacrificed to save the party’s image.” Senior party members met on Saturday night at Yudhoyono’s residence in Bogor to discuss the threatening text messages. Andi Nurpati, the party’s public communications head, denounced the allegations made in the messages as “lies” and “character assassination.” One claim was that some party elites were implicated in a same-sex scandal, while another was that 19 million votes were manipulated in the 2009 elections. But she acknowledged that the party had been taken by surprise by the entire scandal.   Nazaruddin: A Chronology of Key Events in the Unfolding Bribery Scandal Last Updated on Monday, 04 July 2011 16:14 Sunday, 03 July 2011 2 Theindonesiatoday.com - Detik.com has just published a chronology of key events in the unfolding bribery scandal implicating some politicians of President SBY's Demokrat Party, according to BlackBerry Messenger from former treasurer Muhammad Nazaruddin, who is suspect in one of the cases. Nazaruddin reveals the following: 1) January 2010: A meeting with Andi Mallarangeng (minister of sports and youth affairs), Angelina Sondakh (lawmaker), Mahyudin, and Nazaruddin. Andi explained about his ministry's proposal for State budget of Rp2.3 trillion to accelerate the development of SEA Games infrastructures. Andi called in the ministry's secretary Wafid Muharam (now a suspect) and ordered him to help Angelina and 'friends'. 2) February 2010: A meeting with Wafid, Angelina, Mirwan Amir (lawmaker), and Anas Urbaningrum (then chairman of Demokrat Faction, candidate for Demokrat chairman). One businessman attended the meeting named Mahfud, who is a friend of Anas and Nazaruddin. We discussed details of Ambalang Stadion project of Rp1.2 trillion, sports supporting facilities of Rp75 billion, athlete dormitory project in Palembang Rp200 billion, and a project worth Rp200 billion in West Java. 3) February 3rd, 2010: A meeting at Japanese restaurant, Arcadia, Senayan, Jakarta. Attending the meeting were Angelina, Mirwan Amir, Nazaruddin, Mahyudin, Andi Mallarangeng, Wafid, and one new deputy at sports ministry. "We agreed on technicalities. Wafid would execute with Angelina and Mirwan. I didn't participate. But I was informed that Rp9 billion would be taken from the dormitory project and Rp50 billion from the Ambalang project." "Rp9 billion for DPR (House of Representatives), Rp7 billion for Anas campaign for chairmanship race." "From the Ambalang project, the funds allocated to be distributed were Rp100 billion, of which Rp30 billion for lawmakers through a businessman named Mahfud, a friend of Anas, Rp50 billion for Anas campaign in the Congress, and Rp20 billion for Anas Consultant Team named Ifang." Anas Urbaningrum had denied all the allegations mounted by Nazaruddin, who is now living in Singapore. Earlier on Saturday, the anti-money laundering agency PPATK disclosed that it finds hundreds of suspicious transactions related to Nazaruddin. (Theindonesiatoday.com)   Nazaruddin Reveals Anas Money Politics, Tempo Reports | Photo:Demokrat Nazaruddin Reveals Anas Money Politics, Tempo Reports Monday, 11 July 2011 06:49 Written by Pepe Goldman Theindonesiatoday.com - Fugitive lawmaker Muhammad Nazaruddin revealed more details of money politics at Demokrat Party, including its chairman Anas Urbaningrum, in a telephone interview with Tempo magazine. "I gave each of DPC (regional branch of Demokrat Party) between US$10,000 to US$40,000," Nazaruddin said regarding money spent in the election of Anas as chairman of Demokrat in a Congress last year. "Don't be surprised, total funds to ensure Anas victory was US$20 million," the Demokrat lawmaker and former treasurer continued. To add legitimacy to the report, due to doubts over allegations mounted by Nazaruddin through BlackBerry messengers in the past few weeks, Tempo magazine insisted a telephone interview with Nazaruddin, whose whereabouts is not clear. Nazaruddin told Tempo that part of political financing of Anas was sourced from PT Anugerah, which is at the center of bribery scandal investigation at the Corruption Eradication Commission (KPK). PT Anugerah is partner of PT Duta Graha Indah (DGIK) Tbk in the controversial athlete dormitory project. "I heard he took US$1 million (from Anugerah) in January, and asked for US$1 million in March to Yulianis (one of Nazaruddin's staffs)," Nazaruddin said. But Anas dismissed all Nazaruddin's allegations. "What I heard, he (Nazaruddin) got huge profit from the Congress," Anas is quoted by Tempo. (Theindonesiatoday.com)   Nazaruddin Drags Other Politicians in Bribery Case Friday, 17 June 2011 09:46 Written by Haryanto Suharman Theindonesiatoday.com - Muhammad Nazaruddin, former treasurer of Demokrat Party, has pointed his fingers to other politicians behind the athlete dormitory bribery scandal. Nazaruddin, who refused to show up in three summons by the Corruption Eradication Commission, has apparently sent information to some reporters through BlackBerry Messenger (BBM) yesterday. Nazaruddin said based on testimony of Angelina Sondakh, Demokrat legislator, to the fact finding team from Demokrat Party, the money has been disbursed to Angelina Sondakh (Demokrat), Mirwan Amir (Demokrat), and Wayan Koster (PDI-P). All of them were members of budget committee of the House of Representatives (DPR), which endorsed the budget for athlete dormitory project. Nazaruddin, however, provided no information about involvement of PT Anak Negeri, a company reportedly he owned, in the project. Lawyer of Mindo Rosalina Manulang, former director of PT Anak Negeri, had recently admitted that Nazaruddin was Rosa's boss. KPK has so far named three suspects in the case. They are Rosa, Wafid (secretary to ministry of sports and youth affairs), and M El Idris (director of PT Duta Graha Indah Tbk, EPC contractor of the project). ( haryanto@theindonesiatoday.com)   Yudhoyono rapped for comments on media Adianto P. Simamora, The Jakarta Post, Jakarta | Wed, 07/13/2011 12:05 PM The Press Council on Tuesday criticized President Susilo Bambang Yudhoyono for blaming the media for relying on text messages as news sources in the graft scandals surrounding his political party. Text messages are a valid source for news stories as long as the media meets principles of covering both sides, council deputy chairman Sabam Leo Batubara said. However, he added, media outlets should verify all allegations made in text messages. “Information for the media could come from many sources, including text messages. It is a matter of technology,” Press Council member Agus Sudibyo told the The Jakarta Post on Tuesday. “It is the right of media outlets to use text messages as the source of a news story. The media outlet knows whether the source is reliable,” Batubara said. “Of course, the media outlet is responsible for verifying all allegations made in the text message.” Batubara said Yudhoyono should use existing mechanisms to settle disputes over news stories. Under the mechanism, people or groups who feel disadvantaged by a news story have the right to seek clarification directly from the media outlet. “If that fails, the case can be brought to the Press Council. The final option would be legal recourse. Such mechanisms have been effective so far,” he said. Batubara said Yudhoyono’s statements at a press briefing on Monday escalated the issue as he did not directly blame any specific media outlet. “I was surprised by Yudhoyono’s generalization that all media outlets did wrong by publicizing the text messages allegedly sent by Nazaruddin.” At the press briefing, Yudho-yono said the media continued to discredit the Democratic Party by basing reports only on text messages purportedly sent by Nazaruddin, the former treasurer of the Democratic Party and a fugitive graft suspect. “I don’t understand this. The news stories’ sole cited source are text messages, which then make headlines. The messages allegedly sent by Nazaruddin — which has not been proven — were publicized to cast a bad light on the Democratic Party,” Yudhoyono said. Nazaruddin fled to Singapore in May following growing allegations against him implicating him of involvement in a graft scandal surrounding a Southeast Asian (SEA) Games construction project. Since leaving Indonesia, the media has received numerous text messages from a person claiming to be Nazaruddin. The messages alleged that the scandal also involved other high-ranking members of the Democratic Party.   President Susilo Bambang Yudhoyono has promised to clamp down on corruption in Indonesia Indonesia President Yudhoyono in web media outburst 30 May 2011 Indonesian President Susilo Bambang Yudhoyono has launched an attack on the media and web users for circulating "outrageous" messages about him. He said someone "from a dark place with a dark heart" had slandered him. Messages began circulating on the weekend accusing him and other members of his Democrat Party of corruption. The Democrats have largely succeeded in appearing free of corruption in the past. But their ex-treasurer was recently accused of taking huge bribes. Muhammed Nazaruddin went to Singapore last week, one day before he was due to receive a travel ban over claims he took $3m (£1.8m) of illegal payments. He had threatened to expose alleged misdeeds of his former party colleagues in retaliation for his dismissal as party treasurer. And two days ago, text messages emerged from a Singapore number saying Mr Yudhoyono and other Democrat Party members were involved in the same scandal. The messages were widely quoted on social-networking websites. The Indonesian media say Mr Nazaruddin sent the messages, but the claims could not be verified. Mr Yudhoyono, who has made tackling corruption a stated priority of his government, is famous for his calm demeanour. But on Monday he launched an uncharacteristic attack, saying: "Two days ago there was someone who slandered me from a dark place with a dark heart. "This was outrageous slander including personal insults. I say openly they are irresponsible, ignoble and cowardly." He said online media should be used to improve the life of the nation, not "to spread lies and assassinate character or abuse anyone". Indonesia is often criticised for corruption, and rights groups say Mr Yudhoyono has had only limited success in his attempts to deal with the problem. But no-one has ever made serious public allegations of corruption against him, and he denies any wrongdoing.

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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