SUMMARY:

On Thursday, March 19, the fight over the 2015 Jakarta budget reached a potential turning point as representatives of the administration, under Jakarta Governor Basuki “Ahok” Tjahaja Purnama, invited members of the city council to witness a live demonstration of the e-budgeting process. Together, the executive and members of the city council input a number of revisions to address the feedback from the Home Affairs Ministry, which highlighted spending shortages in critical areas like flood mitigation and traffic control, and to eliminate the Rp 12.1 trillion in “ghost” spending that was inserted in a previous version of the budget after deliberations had closed. Upon seeing how the system worked, a number of Ahok’s fiercest political rivals voiced their support, and requested training on the e-budgeting tool.

On Thursday, March 19, local election NGO Perludem called for revision to the General Election Commission’s (KPU) proposed regional election spending cap formula. The formula, according to Perludem, would allow candidates to spend at far higher levels than have been recently reported, and would therefore not act to curb the influence of monied interests.

On Friday, March 20, the Corruption Eradication Commission (KPK) signed a memorandum of understanding (MoU) with a number of ministries to combat corruption in the natural resources sector. The MoU follows a meeting with President Joko “Jokowi” Widodo earlier this week, in which he expressed a desire for the KPK to play a larger role in ensuring that the country’s rich natural resources are used for the benefit of the public good, not for the personal enrichment of a select few. Friday’s MoU expands upon an MoU signed in 2014 by adding a focus on marine resources and plantations.

On Friday, March 20, KPK legal bureau chief Chatarina Mulyana Girsang said she would tap colleagues on the prosecution team for additional help in facing a wave of upcoming pre-trial motions. Starting on Monday, March 23, the KPK is scheduled to defend its charges against former House of Representatives (DPR) Energy Committee Chair Sutan Bhatoegana before the South Jakarta District Court. One week later, starting on Monday, March 30, the KPK is set to square off against pre-trial motions for dismissal filed by former director general of taxation (and former BPK Chair) Hadi Poernomo, former Religious Affairs minister Suryadharma Ali, and corruption suspect Suroso Atmo Martoyo.

In light of the ongoing preparations for these cases, KPK staff continued to press the agency’s leadership on Thursday, March 19, to lodge an appeal (peninjauan kembali – PK) at the Supreme Court, to strike down the previous pre-trial ruling that saw charges against police general Budi Gunawan dropped. The landmark decision has been roundly condemned by the legal community for setting a dangerous precedent. Vice President Jusuf Kalla, along with the National Police, has advocated the use of pre-trial motions as a mechanism to determine whether charges constituted “criminalization” or were based on legitimate violations of the Criminal Code. Since the controversial ruling in late February, two separate district court judges have denied similar pre-trial motions, in keeping with articles of the Criminal Code that prohibit the matter from being considered in court. 

On Thursday, March 19, colleagues from the Gadjah Mada University (UGM) vouched for the integrity of former deputy Law and Human Rights minister Denny Indrayana, amid allegations the online payment gateway established under his term in office had caused state losses and therefore constituted an act of corruption. Taufik Rinaldi said that the system was an important improvement in bureaucratic efficiency and he was certain that Denny, an outspoken supporter of the KPK, had in no way derived any personal financial benefit. In addition to allegations of corruption, Denny was previously reported to the police for defamation, for his criticism of Budi Gunawan. ICW will be conducting a detailed examination of the case against Denny as it develops.

On Friday, March 20, the Attorney General’s Office (AGO) stated that it was not yet ready to order a further investigation into Budi Gunawan, despite its earlier claims that the evidence forwarded by the KPK had been lacking. Attorney General H.M. Prasetyo said his team was still studying the evidence and had not yet reached any conclusions. Earlier, Prasetyo had indicated the case would be forwarded to the National Police for further review.

On Friday, March 20, during a visit to Yogyakarta, President Jokowi denied accusations that members of his campaign team or politicians had been shown preferential treatment in their selection as the commissioners of state-owned enterprises. A number of students in the nearby city of Surakarta, commonly referred to as Solo, staged a protest aimed at “bringing Jokowi back to Solo”. Students partially blocked a major highway to urge the President to step down from national politics return to the city where he began his political career. The University of Indonesia Alumni Association announced a nation-wide student protest on Friday, March 20, to mark the launch of a student-led anti-corruption movement. Association chairman Chandra Motik claimed other leading Indonesian universities – including IPB, ITB, ITS, Trisakti, Pancasila, ISTN, Jayabaya – would join the action and would be supported by members of the Team of Nine, formed by Jokowi to provide advice on the conflict between the KPK and the National Police.

KEY DEVELOPMENTS:

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

Tuesday, March 17 – Busyro Muqqodas calls for Supreme Court intervention against pre-trial motions

Tuesday, March 17 – Nazaruddin implicates a number of Democrat party officials in testimony at KPK

Wednesday, March 18 – KPK announces it will press forward with investigations despite pre-trial motions

Wednesday, March 18 – Pontianak District Court judge strikes down pre-trial motion to review suspect’s legal status

Wednesday, March 18 – Udar Pristono files counterclaim against AGO for property seizures

Wednesday, March 18 – Budi Gunawan’s lawyer, Razman Arif Nasution, sent to prison for abuse of nephew

Thursday, March 19 – Judicial Commission, Sarpin trade allegations of defamation

Thursday, March 19 – Budi Waseso confirms investigations against KPK remain in play

Friday, March 20 – KPK signs MoU with several ministries to examine corruption in natural resources sector

IMPLICATIONS:

The efforts of the Jakarta provincial administration to educate members of the city council on e-budgeting appear to have borne fruit, as the months-long budget battle turns a corner. Previously vocal opposition members have now praised Ahok’s dedication to transparency and his efforts to root out corruption as the conflict draws to a close. This recent breakthrough comes in the 11^th hour, ahead of a deadline set by the Home Affairs Ministry to reconcile differences over the 2015 budget draft or be forced to use last year’s budget.

The KPK’s signature of an MoU signals a readiness of the institution to address the President’s interest for greater scrutiny in the sector of natural resource management. It remains unclear, however, whether the MoU focuses strictly on preventative efforts, as a number of activists have feared, or whether it includes a more balanced focus on prevention and prosecution. Interim KPK Commissioner Johan Budi has pointed out on several occasions, backed by numerous civil society organizations, the anti-corruption agenda must be pursued on both fronts for it to be successful.

The hesitance of KPK leadership to file an appeal at the Supreme Court continues to be an issue among its staff, and it appears that with the onslaught of additional pre-trial motions it will face in the coming weeks, the window to do so in the near future is rapidly closing as legal division staff are stretched thin. Earlier district court rulings outside of Jakarta provide hope that Budi Gunawan’s pre-trial victory was a one-off occurrence; however, the withdrawal and prompt resubmission of the motions suggest that at least Suryadharma Ali is angling for a judge who is sympathetic to more creative interpretations of the law.

The mobilization of student movements against corruption is always a welcome sign, but today’s calls for action come at perhaps the calmest point in the recent conflict between the KPK and the National Police. In order for to effectively defend the anti-corruption agenda, public demonstrations have to be organized at times when key decisions are under consideration, rather than after they have already been made. As such, these student movements are unlikely to have a significant effect the current political climate, unless they can be sustained at least over the medium term.

Information as of 5:30 p.m. WIB, March 20, 2015