• Ahmad Hafiz Zawawi Rp 600m
• Marthin Bria Seran Rp 250m
• Paskah Suzetta Rp 600m
• Boby Suhardiman Rp 500m
• Antony Zeidra Abidin Rp 600m
• TM Nurlif Rp 550m
• Asep Ruchimat Sudjana Rp 150m
• Reza Kamarullah Rp 500m
• Baharuddin Aritonang Rp 350m
• Hengky Baramuli Rp 500m

• Agus Condro Prayitno Rp 500m
• Max Moein Rp 500m
• Rusman Lumbantoruan Rp 500m
• Poltak Sitorus Rp 500m
• Williem Tutuarima Rp 500m
• Panda Nababan Rp 1,450m
• Engelina Pattiasina Rp 500m
• Muhammad Iqbal Rp 500m
• Budiningsih Rp 500m
• Jeffrey Tongas Lumban Rp 500m
• Ni Luh Mariani Tirtasari Rp 500m
• Sutanto Pranoto Rp 600m
• Soewarno Rp 500m
• Matheos Pormes Rp 350m

• Sofyan Usman Rp 250m
• Daniel Tandjung Rp 500m

• Hamka Yandhu, Golkar Rp 2,250m - Jailed for 2.5 years
• Endin AJ Soefihara, PPP Rp 500m - Jailed for 2 years
• Dudhie Makmun Murod, PDI-P Rp 500m - Jailed for 2 years
• Udju Djuhaeri, Police-TNI faction Rp 500m - Jailed for 2 years

1. Azhar Muklis, Golkar Party Rp 500m
2. Aberson Sihaloho, PDI-P Rp 500m
3. Suratal H W, PDI-P Rp 500m

• Zederick Emir Moeis, PDI-P Rp 200m
• Sukardjo Hardjo Wirjo, PDI-P Rp 200m
• Uray Faisal Hamid, PPP Rp 250m

• R Sulistiyadi Rp 500m
• Suyitno Rp 500m
• Darsup Yusuf Rp 500m

The central bank has introduced six regulations, which it says not a capital control mechanism, to improve the effectivity of its monetary policies and stabilize the financial system and the rupiah.

The regulations include a minimum one-month holding period of Bank Indonesia (BI) certificates, which will be implemented starting July 7.

BI will also issue BI certificates maturing in nine months and 12 months starting August and September, respectively, acting BI governor Darmin Nasution said in a press conference.

The regulations will cover domestic and foreign investors, he said. "This isn't solely aimed at foreign investors," he said.

Democrat lawmaker Sutan Bathoegana, from left, with National Police Chief Gen. Bambang Hendarso Danuri, Attorney General Hendarman Supandji and Corruption Eradication Commission deputy chairman Bibit Riyanto after the discussion in the House. (JG Photo/Yudhi Sukma Wijaya)

The Corruption Eradication Commission told the House of Representatives on Wednesday that it had not yet found any indications of corruption in the Bank Century bailout, drawing the ire of legislators.

The comment was made during a meeting between the House team monitoring the criminal investigation of the bailout, the antigraft commission, or KPK, the National Police and the Attorney General’s Office.

House Deputy Speaker Pramono Anung, a veteran lawmaker from the opposition Indonesian Democratic Party of Struggle (PDI-P), and other legislators expressed their disappointment after Muhammad Jasin, a KPK deputy chairman, said no indications of corruption had been found.

Lawmakers said such a “soft stance” on the part of the respected antigraft commission may have been influenced by the legal dilemma in which two KPK deputies, Chandra M Hamzah and Bibit Samad Riyanto, were mired.

Chandra, however, said the antigraft commission was not under any political pressure. “We guarantee 1,000 percent that our investigation of the Bank Century bailout is legit,” he said.

Jasin said the KPK had questioned 96 witnesses and focused on corruption allegations arising from the injection of short-term liquidity (FPJP) into the bank in the first phase of the bailout.

“We have yet to find any indication of corruption in the use of the FPJP money,” he said.

Attorney General Hendarman Supandji backed up the KPK’s findings, saying his office had not detected any losses to the state as a result of the bailout.

He said that no matter how many times the authorities brought in former Finance Minister Sri Mulyani Indrawati and Vice President Boediono for questioning, “the results would be the same, because there’s just no evidence pointing to financial losses to the state.”

Pramono, who chaired Wednesday’s hearing, said he was particularly disappointed with the KPK’s claims, citing the commission’s renowned tenacity in pursuing graft probes.

“[It’s disappointing] that the KPK has come up with nothing concrete in this case,” he said. “It’s clear the KPK is under some political pressure.”

Pramono said the House had identified at least 40 irregularities in its inquiry into the bailout, and chided the KPK, AGO and police for not following up on its recommendations.

Several lawmakers, including Fahri Hamzah, from the Prosperous Justice Party (PKS), Bambang Soesatyo, from Golkar, and Trimedya Panjaitan, from the PDI-P, questioned whether the KPK’s commitment to getting to the bottom of the case was flagging.

“It was the KPK that first investigated the Bank Century scandal and came up with indications of financial losses to the state,” Trimedya said. “But now there’s been a wavering in the KPK’s approach. It started out strongly, but now it’s wobbly.”

Jasin said the witness testimonies and findings so far should not be extrapolated to draw a final conclusion. He said the probe was ongoing, with 111 officials still being investigated.

Pramono called for the investigations to be wrapped up this year so the House could focus on “asset recovery” next year.

Jakarta (ANTARA News) - Finance Minister Agus Martowardojo has said that the Finance Audit Board (BPK) should periodically audit the implementation of rupiah banknote printing, issuance and extermination.

"In order to guarantee accountability in the management of rupiah banknote printing, it should be audited periodically by BPK," Minister Martowardoyo said in the government`s response to the House of Representatives (DPR)`s explanation on the Currency Bill in a hearing with members of the DPR`s Commission XI here Wednesday.

He said under the Currency Bill, rupiah banknote management regulation covers planning, execution, distribution, revocation, and extermination of the rupiah bill.

As a check and balance, the central bank, Bank Indonesia (BI) and the government should coordinate not only in the planning process but also at the stage of rupiah extermination.

The Check and balances are necessary as part of the implementation of good governance principle, according to the minister in the meeting led by Emir Moeis, chairman of the DPR`s Commission XI.

In dealing with the rupiah counterfeit crime, the central bank should carry it out with the cooperation of legal enforcers and/or other institutions appointed by the government, he said.

The Bill on Currency is an initiative by the Parliament which has been submitted to the President in the House Speaker`s letter no. LG.01.02/2166/DPR-RI/III/2010, March 18, 2010.

President Susilo Bambang Yudhoyono has nominated Bank Indonesia Acting Governor Darmin Nasution (pictured) to take the job permanently. (Bloomberg Photo)

President Susilo Bambang Yudhoyono nominated Bank Indonesia Acting Governor Darmin Nasution to take the job permanently, a lawmaker said, possibly ending a one-year impasse over the central bank’s leadership.

Achsanul Qosasi, vice chairman of the House of Representative’s budget affairs committee and a member of Yudhoyono’s Democrat party, confirmed by telephone today that Nasution is the candidate.

Yudhoyono signed the nomination letter and it has been sent to the parliament, Julian Pasha, a presidential spokesman, said by phone, declining to name the nominee.

The central bank governor post has been vacant since Vice President Boediono resigned in May 2009 to become Yudhoyono’s running mate in last year’s presidential election. The appointment, which requires parliamentary approval, will plug a vital gap in the country’s top economic leadership, after Yudhoyono named Agus Martowardojo as Indonesia’s finance minister May 19.

“The new governor will be tasked with improving communication between fiscal policy makers and monetary policy makers, and designing measures to protect the $514 billion economy from the impact of the European debt crisis,” said Juniman, chief economist at PT Bank Internasional Indonesia.

Indonesia’s central bank has left its benchmark interest rate at a record low of 6.5 percent since August 2009, even as regional neighbors from India to China have raised borrowing costs this year to avert asset bubbles and contain inflation.

Bank Indonesia will probably keep its benchmark rate unchanged at 6.5 percent on Thursday, according to all 24 economists in Bloomberg News survey. The measure is at the lowest level since it was introduced in July 2005. The central bank targets inflation, which accelerated to 4.16 percent in May, at 4 percent to 6 percent this year.

Standard and Poor’s raised Indonesia’s sovereign credit rating to a 12-year high of BB from BB- on March 12, with a positive outlook. SandP and Moody’s Investors Service both rank Indonesia two levels below investment grade, while Fitch Ratings on Jan. 25 raised it to one step below investment.

Nasution, 61, received his doctorate in economics from University of Paris, Sorbonne, France in 1986, according to the Bank Indonesia Web site. He was chairman of Indonesia’s Capital Market and Financial Institution Supervisory Agency (Bapepam) in 2006. He was director general of taxation at the Ministry of Finance before moving to the central bank.

Bank Indonesia is led by a board of governors consisting of one governor, one senior deputy governor and six deputy governors.

Bloomberg

President Susilo Bambang Yudhoyono has signed a proposal naming Darmin Nasution as the new Bank Indonesia governor.

"President SBY (Yudhoyono) signed the proposal yesterday, hopefully it will arrive at the House of Representatives this afternoon," a legislator from Yudhoyono's Democratic Party, Achsanul Qosasih, told reporters at the House in Jakarta on Wednesday.

Achsanul of the House of Representatives’ Commission XI on finance added that Darmin was the one and only name proposed by Yudhoyono.

Darmin has been the interim governor replacing Boediono who was appointed as vice president.

“Hopefully there is no objection from the parties at the House,” Achsanul said.

Darmin stole the show at a hearing held by the House’s Commission XI on Wednesday, with Finance Minister Agus Martowardojo, National Development Planning Minister Armida Alisjahbana and Commission XI chief Emier Moeis congratulating the BI senior deputy governor.

Darmin said he had not been notified about his nomination.

The Supreme Court said Monday that the Finance Ministry's tax office still had a chance to re-investigate alleged tax evasion involving East Kalimantan based coal-mining company PT Kaltim Prima Coal (KPC).

Supreme Court spokesman Hatta Ali urged the office to adhere to legal procedures so that the company would have no grounds to complain about the investigation.

In March 2009, KPC filed a complaint with the Jakarta tax tribunal after it received a letter from the tax office saying the company was under investigation. KPC complained that the investigation was not in line with legal procedures.

Hatta said that according to the General Rules on Taxation Law, if the tax office intended to start investigating alleged tax evasion, the office should issue a letter to stop any investigation of suspicious tax reports first.

“We found that the office had issued the warrant to investigate initial evidence of the alleged tax evasion involving KPC before the letter to stop the investigation was issued,” he told reporters at the Supreme Court office in Jakarta.

He said that the warrant was issued on March 4 last year, while the letter to stop investigation of suspicious tax reports was not issued until March 5.

The tax tribunal then ruled in favor of KPC and ordered the tax office to stop investigating the company.

KPC also filed a pretrial suit with the South Jakarta District Court to affirm the tax tribunal ruling.

In response to the company's legal actions, the tax office filed a case review request with the Supreme Court in February this year.

On May 24, the Supreme Court's panel of three justices, Imam Soebechi, Supandi and Paulus E. Lotulung, decided to reject the case review, saying that the tax tribunal ruling had complied with existing laws and the constitution.

“What happened was just procedural error ... The tax office could still investigate the alleged tax evasion,” said Hatta. (rdf)

Related Articles:

The appointment of Agus Martowardojo, who replaced Sri Mulyani Indrawati, as Indonesia’s finance minister is likely to reinvigorate the improving trend in Indonesia’s sovereign credit profile, Moody's Singapore says.

"This appointment will alleviate the heightened risk of policy gridlock in view of greater-than-expected contentiousness in the relationship between the government and its key coalition partners," it said on Monday.

It added Agus' appointment seemed to represent a stable compromise between the government and its main coalition partners.

"As such, we do not expect key fiscal policies and budget management goals to come under political attack or shift significantly from the credit-supportive positions set by the outgoing finance minister," Moody's said.

It stated that in his 25-year career as a banker and as a reformer of state-owned financial institutions, Agus built a reputation for strong management and personal integrity.

"These credentials will support the prioritization of second-generation reforms to deepen domestic capital markets, improve governance, and heighten transparency and accountability in the public sector," it added.

On account of his familiarity with financial and capital markets, Agus could boost the coordination between the Finance Ministry and Bank Indonesia, the country’s central bank.

Indonesia’s political and financial system and its government finances have come a long way since the 1997-98 Asian financial crisis. Its economy and credit fundamentals have also been resilient to the 2009 global economic crisis and the commodity shocks that preceded it.

These developments have resulted in two sovereign ratings upgrades since October 2007, to Indonesia’s current government bond rating of Ba2 with a stable outlook. The sovereign rating upgrades took place while many skeptics doubted the country’s policy fundamentals and financial stability.

"Against this backdrop, our view is that a deepening of domestic markets and/or a healthier and stable external payments position are key to complementing and sustaining headline improvements in credit ratios, anchoring market confidence, and maintaining the improving trajectory of the sovereign rating," Moody's said.

However, the broader reform thrust has become ensnared in personalized political rivalries, pitting reformists within the government against vested business and political interests, it further stated.

"Therefore, the recent transition at the Finance Ministry will likely ensure policy continuity and efficacy, represent a stable political compromise, and enhance policy coordination between fiscal and monetary authorities," Moody's said.

"These could continue to provide uplift to Indonesia’s credit fundamentals," it added.

A Kaltim Prima Coal mine in East Kalimantan. The tax office says it will continue its probe of the PT Bumi Resources subsidiary. (Supplied Photo)

The Bakrie group has won another round in its tax dispute against the government, with the Supreme Court upholding a ruling that the tax office did not have sufficient evidence to upgrade its probe of a subsidiary to a full investigation.

However, an official at the Finance Ministry’s Directorate General of Taxation vowed to continue the probe of PT Kaltim Prima Coal, a unit of PT Bumi Resources, the country’s largest coal producer.

In a statement on its Web site, the Supreme Court said a three-member panel of judges presided over by Judge Imam Soebechi on Monday had rejected a request for a review of the tax tribunal’s decision in December that the tax office had insufficient evidence to upgrade its probe of KPC, which was alleged to have underpaid its taxes by Rp 1.5 trillion ($160.5 million).

The court has yet to explain the grounds for the ruling.

KPC lawyer Aji Wijaya said the ruling backed the company’s contention that the tax office lacked sufficient evidence.

“Therefore, the tax directorate’s investigation, which is based on their initial evidence, must be stopped,” Aji said.

“This is a good news for all stakeholders of KPC, including investors.”

Shares in Bumi Resources soared on the news, gaining 20 percent on Wednesday.

Elevating an initial tax probe into a full-fledged investigation gives the tax office greater freedom to seize company documents and, recommend a travel ban for company executives and recommend that assets be frozen or seized.

Pontas Pane, interim director of intelligence and investigation at the Directorate General of Taxation, said the ruling would not stop the probe into KPC, and said the Supreme Court’s ruling was based largely on procedures, and was not a judgment of the evidence against KPC.

“It was about a letter to elevate the case into an investigation based on preliminary proof,” Pontas said.

The tax office has been investigating Bumi Resources, KPC and PT Arutmin Indonesia, another Bumi subsidiary, since March 2009 for allegedly evading a combined Rp 2.1 trillion in taxes owed in the 2007 tax year.

The court’s ruling comes as former Finance Minister Sri Mulyani Indrawati departed the country on Wednesday for Washington for a new job at the World Bank.

Sri Mulyani and the Bakrie group’s Aburizal Bakrie have frequently sparred in recent years over the group’s interests. Before she left, she warned that the country’s reforms were in danger of being “hijacked” by vested interests, and said Aburizal, one of Indonesia’s most powerful men, wanted her removed from her post because of her commitment to reforms, according to a newspaper report published on Wednesday.

It was the strongest statement yet from Sri Mulyani following weeks of speculation, which she denied in the report, that her departure was the result of a political deal between President Susilo Bambang Yudhoyono and Aburizal, chairman of the Golkar Party, a member of the government’s coalition.

Eddy OS Hariej, criminal law expert from Gadjah Mada University, said on Wednesday the court’s ruling would not necessarily prevent the tax office from continuing its investigation.

“The investigation process is to find the truth on an alleged criminal act. So the criminal court is the only one to decide whether the proof used is valid or not. At the current stage, the Supreme Court decision has no effect on the investigation,” he said.

Related Article: