SUMMARY:

On Thursday, Feb. 12, the Corruption Eradication Commission (KPK) questioned Elizar P. Hasibuan, current vice president director of state-owned oil and gas company Pertamina, in connection to its investigation into bribery and bid-fixing by UK firm Innospec. The KPK has named two suspects in the case – former Pertamina director Suroso Atmo Martoyo and Willy Sebastian Liem, a representative for Innospec in Indonesia. Susro and Willy were named suspects in 2011, and KPK representatives have said that the international nature of the case had slowed progress, though cooperation with British officials remained effective. As reported by The Jakarta Post, Innospec was fined £8.3 million in 2010 by the Southwark Crown Court in England after admitting to bribing Energy and Mineral Resources Ministry and Pertamina officials, including Suroso.

Amid the high-profile conflict between the KPK and the National Police in Jakarta, another national scandal has emerged at the eastern end of the archipelago. In 2013, Papua Police officer Labora Sitorus was discovered to have laundered $118 million through his personal bank accounts by the Financial Transaction and Reports Analysis Center (PPATK), along with other police officers found to be holding hefty bank balances, including Budi Gunawan. In 2014, Labora was sentenced to 15 years in prison. However, in October 2014, he apparently forged a temporary letter of release to seek medical treatment and walked out of prison on his own free will. Rather than fleeing the country, he has returned home and provided a number of media interviews, in which he has maintained that his release was legitimate and any attempts to return him to incarceration are politically motivated. The Attorney General’s Office, the police, and the Law and Human Rights Ministry have engaged in a variety of finger-pointing, while Labora remains at large. Local media have reported that despite his conviction and 15-year sentence, he remains on the police payroll, collecting a monthly salary.

In its Friday, Feb. 13 edition, English daily The Jakarta Post reported that Budi Waseso, head of the National Police’s Detective Division and a close associate of corruption suspect and National Police chief-nominee Budi Gunawan, had ordered Internal Affairs Division investigations into police officers who were thought to have cooperated with KPK investigators. This effort to close ranks and erect a wall of silence follows Waseso’s comments last week that he would root out “traitors” within the National Police.

Friday, Feb. 13 marked the last scheduled day for arguments at the South Jakarta District court for the pre-trial motion filed by Budi Gunawan. The court is expected to adjourn for the weekend, and reconvene on Monday, Feb. 16 to announce a ruling on the motion to dismiss the bribery charges against the three-star police general. The KPK’s legal team called upon academics Zainal Arifin Mochtar and Bernard Arif Sidharta to provide their expert legal opinions on the decision-making procedures used by the KPK. National daily Kompas reported that additional security had been put in place to secure the courthouse, including mandatory screenings of all visitors.

KEY DEVELOPMENTS:

Tuesday, Feb. 10 – South Jakarta District Court continues hearings on Budi Gunawan’s pre-trial motion

Tuesday, Feb. 10 – KPK Corruption Prevention Director Johan Budi and former KPK commissioner Chandra Hamzah reported to police

Tuesday, Feb. 10 – Former Religious Affairs minister Suryadharma dodges KPK summons

Tuesday, Feb. 10 – PDI-P’s Hasto testifies at South Jakarta District Court in hearing on Budi Gunawan’s pre-trial motion

Wednesday, Feb. 11 – KPK hosts Anti-Corruption Film Festival (ACFFest)

Wednesday, Feb. 11 – National Police Commission (Kompolnas) submits list of six names to Jokowi for alternative National Police chief-nominee.

Wednesday, Feb. 11 – KPK reveals threats against its staff, witnesses

Thursday, Feb. 12 – Legal team for KPK presents witness, evidence in Budi Gunawan’s pre-trial hearings

Friday, Feb. 13 – Hearings conclude at South Jakarta District Court, ruling scheduled for Monday

IMPLICATIONS:

The KPK continues to show progress in a number of high-profile cases, despite resistance from the National Police and threats leveled at its staff and their family members. Thursday’s (Feb. 12) questioning of witnesses in the Innospec investigation are a positive indication that the case, initially begun under the former KPK leadership, continues to be pursued.

Rumors intensified on Friday, Feb. 13 that President Joko “Jokowi” Widodo would cancel the inauguration of Budi Gunawan as National Police Chief. Media quoted a number of officials “close to the president” who claim a decision had been made, and would be imminently announced. When delaying the decision on a previous occasion, Jokowi said he would wait until the conclusion of the pre-trial hearings in Budi’s case, but public and political pressure has continued to build as he has once again delayed making a clear decision or taking concrete action. In an impromptu statement to the press on Friday afternoon, Jokowi reiterated that he would be announcing a decision as soon as possible, without further specifying a concrete timeline.

Political jockeying continued in the House of Representatives (DPR) as members of Commission 3 – which overseas legal affairs, human rights and security – appeared divided over whether Jokowi was legally obligated to inaugurate Budi Gunawan after his confirmation in the House, or whether a new nominee should be selected. The Democrat Party of former president Susilo Bambang Yudhoyono publicly stated it would support  Jokowi to select a new nominee.

COMMISSIONERS’ LEGAL STATUS UPDATE

Abraham Samad – complaint filed with police, under investigation

Adnan Pandu Praja – complaint filed with police, under investigation

Bambang Widjojanto – charged as a suspect

Zulkarnain – complaint filed with police, under investigation

OTHER LEGAL UPDATES

KPK Corruption Prevention Director Johan Budi – complaint filed with police

Former KPK Commissioner Chandra Hamzah – complaint filed with police

Former KPK Commissioner Busyro Muqoddas – complaint filed with police

Former Deputy Law and Human Rights Minister Denny Indrayana – complaint filed with police

Information as of 5:30 p.m. WIB, February 13, 2015