SUMMARY:

On Sunday, March 15, Attorney General H.M. Prasetyo said the material his office received from the Corruption Eradication Commission (KPK) regarding its investigation into National Police general Budi Gunawan lacked strong evidence and would be forwarded to the police for further investigation. On a number of previous occasions, the National Police have released statements indicating they considered the matter sufficiently clarified through a previous internal investigation and would not be digging further into the allegations against Budi Gunawan.

On Monday, March 16, KPK commissioners met with President Joko “Jokowi” Widodo at the State Palace to discuss ongoing efforts to eradicate corruption, including in the natural resources sector. Interim KPK Commissioner Johan Budi said that an internal study had revealed that further efforts could result in an additional Rp 20 trillion in state income, by closing loopholes and cracking down on tax evasion. KPK Commissioners also stopped by the House of Representatives (DPR) for what they called a “courtesy call” to help improve communication between the two bodies.

On Monday, March 16, Law and Human Rights Minister Yasonna Laoly provided additional details on the upcoming revisions that would allow corruption convicts easier access to sentence reductions, noting that they must be a justice collaborator, and they must pay back the state losses they caused as well as the fines imposed on them by the court. The KPK’s Johan Budi has already voiced disappointment with the policy revision, saying the government should be making life harder, not easier, for corruptors.

Corruption suspect Hadi Poernomo, who has dodged the last two KPK summons for questioning, announced on Monday, March 16, that he would challenge his legal status through a pre-trial motion at the South Jakarta District Court. Poernomo is suspected of using his authority as then director of taxation in writing off Bank Central Asia’s (BCA) tax obligations, which caused Rp 375 billion in state losses. Former Religious Affairs minister Suryadharma Ali, who is also facing corruption charges, has been scheduled to begin hearings on his pre-trial motion for dismissal at the South Jakarta District Court on March 30. Suryadharma’s motion will be considered by judge Tati Hardianti. The former minister had previously submitted a pretrial motion and judge Martin Ponto Bidara was assigned to oversee proceedings; however the motion was withdrawn in order to improve its argumentation, according to Suryadharma’s lawyers.

On Friday, March 13, South Jakarta District Court judge Sarpin Rizaldi issued an ultimatum to his critics, saying they would be reported to the police for defamation if they did not issue a public apology within a week. Sarpin’s pre-trial decision to dismiss the charges against Budi Gunawan has been slammed by the legal community, and two academics have already been reported to the police for their comments.

On Friday, March 13, acting National Police chief Badrodin Haiti told media that the investigation into allegations that inactive KPK Vice Chair Bambang Widjojanto coerced witnesses to commit perjury in a 2010 local election dispute would resume next month after the political situation had calmed down. The investigation into inactive KPK Chair Abraham Samad was also temporarily suspended through an agreement reached by the nation’s top law enforcement officials. Legal counsel for Abraham Samad complained on Friday that the continued delay in the police’s investigation had left his client in legal limbo, and urged the case to be processed quickly.

KEY DEVELOPMENTS:

Wednesday, March 11 – National Police announce cases against inactive KPK commissioners will be delayed

Thursday, March 12 – Bambang Widjojanto delivers letter requesting delay of investigation to National Police

Thursday, March 12 – Denny Indrayana refuses to answer police questions without legal counsel

Friday, March 13 – Badrodin Haiti pledges to resume investigations into Bambang, Abraham next month

Sunday, March 15 – Attorney General states KPK case on Budi Gunawan is lacking evidence and will be sent to police for follow-up

Monday, March 16 – Corruption suspect Hadi Poernomo files pre-trial motion for dismissal

IMPLICATIONS:

The announcement from Attorney General H.M. Prasetyo confirms long-held assumptions that the investigation into Budi Gunawan would not make it to court for prosecution. The decision to turn the case back to the police, who have proven satisfied with simplistic explanations for the suspicious transactions discovered in Budi Gunawan’s accounts, is as predictable as it is disappointing. The KPK has a perfect track record of conducting professional investigations, and against this backdrop, the AGO’s statement about the “failure” of the KPK to gather enough evidence should be taken as political attitude rather than an opinion based on the law or a fair evaluation of the KPK’s credibility.

Law and Human Rights Minister Yasonna Laoly’s move to ease access to sentence reductions adds further to the general public perception that the Jokowi administration is working on all fronts to water down the anti-corruption agenda. Under the administration of former president Susilo Bambang Yudhoyono, sentences handed down for corruption suspects grew substantially longer, and sentence reductions, which were typically announced during the holidays, were dramatically reduced. Yasonna has recognized that the move creates a perception that the government is coming to the aid of corruptors; however he has stated that the policy only aims to address the discriminatory policy of the previous administration and provide graft convicts with the same treatment as all other inmates.

After what emerged as a possible turning point last week, as a district court judge in Central Java struck down a pre-trial motion, the KPK will once again have to head to court to defend its work to root out corruption. The KPK has come no closer in recent days to submitting an appeal of the pre-trial ruling in the case of Budi Gunawan, much to the frustration of its supporters and the legal community. A win in the case against Suryadharma Ali could serve as a further step toward reducing the damage of the precedent set by Budi Gunawan; however, a loss would count as a devastating blow, especially for morale at the embattled agency. A new trend is emerging in the filing of pre-trial notions: judge-shopping. Both Budi and Suryadharma submitted the complaints, were assigned judges, and then withdrew and amended the complaints, only to be assigned different judges when they re-filed their complaint. This practice raises suspicions that the previously solid anti-corruption court system is being undermined by corrupt practices that had been largely absent from the TIPIKOR court system in recent years.

President Jokowi’s failure to decisively resolve the conflict between the KPK and the National Police have forced the anti-graft agency into a position of compromise – having to accept concessions, such as the continued delays in cases facing inactive KPK commissioners Abraham Samad and Bambang Widjojanto, in order to have a chance at maintaining progress on a number of other priority cases. Abraham Samad’s legal counsel is beginning to challenge the arrangement by pointing out that “justice delayed is justice denied”; however, it is unlikely that even if the case files are completed and forwarded to the AGO for prosecution that either graft-fighter would be cleared in time to return to active duty. For the time being, all parties in this negotiated solution seem reasonably content with the deal, so any challenges are unlikely to upset the current status quo.

Information as of 5:30 p.m. WIB, March 16, 2015