Moch. JasinCorruption Eradication

Commission of the Republic Indonesia

Bangkok, 11-11-2010www.14iacc.orgwww.iacconference.org

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Indonesia Highlight

• 17,480 islands, 6000 inhabited and 33 provinces.

• 1.922.570 km2 land area and 3.257.483 km2 covered with waters

• 69% area covered by forest, • 25.000 species of plants and 20.000 species of

medicinal plants, 4000 types of woods• Home of million species of rare plant and

animal

LESSONS LEARNT

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Establishment of KPK:Rationale Behind• Corrupt acts have been on the increase over the years• Corrupt acts have become more sophisticated and

systemic• Corrupt acts have been categorized as an extra ordinary

crime, therefore the effort to eradicate corruption must be done by extraordinary means

• Government agencies that have handled corruption cases have not been functioning effectively

KPK established under Law No. 30, Year 2002

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KPK’s Features:• Some features:• Independent from the Executive, Legislative, Judiciary

and any other powers• Responsible to the Public• Jurisdiction only on corruption crime

Other features• 5 Commissioners• 4 Advisors (currently: 2 advisors)• 639 staff

Duties of KPK(Article 6)

The KPK's Duties (Article 6 Law No.30 year 2002)

MonitoringMonitoring(Article 14)(Article 14)

PreventionPrevention(Article 13)(Article 13)

Pre-investigation, Pre-investigation, Investigation & Investigation & ProsecutionProsecution(Article 11)(Article 11)

SupervisionSupervision(Article 8)(Article 8)

CoordinationCoordination(Article 7)(Article 7)

KPK’s Anti-Corruption Mechanism(Law no 30/2002)

MandatesArticle 6

To coordinateArticle 7

To superviseArticle 8

To pre-investigate, to investigate, to prosecute

Article 11

To preventArticle 13

To review systemsArticle 14

1. Attorney General2. Police3. Supreme Audit4. All Inspectorate Generals5. others

1. Attorney General2. Police3. Supreme Audit4. All Inspectorate Generals5. Others

1. Agencies which render public services

1.All powers granted to other LEA by the Law of Procedures

1.Certain powers which are not granted to other LEA

Criminal Justice System

KPK/CECLaw 30/2002

POLICELaw 2/2002

AGO

Law 16/2004

Pre Investigation

Investigation Prosecution

Special Anti Corruption Court (First, Appeal, Supreme)

Prison

Pre Investigation

Investigation

Investigation Prosecution

KPK is authorized to conduct pre-investigations, investigations, and prosecutions against corruption cases that:• Involving law enforcers, state officials, and other individuals connected to

corrupt acts perpetrated by law enforcer or state officials;

• Have generated significant public concern; and/or

• Have State Lost at least IDR 1,000,000,000 (more than US$ 110,000).

Pre Investigation

FORESTRY ACTORS

1. Preperators of illegal logging without license2. Preperators with legal license (logging

outside the permitted location)3. Preperators with legal license (illegally

granting licenses)

FOREST ISSUE

Initial process

End Result

Local Issue

Global Issue

Finished Forest Product

Production andSales Process Abroad

State LostState Official

Private

Illegal Forestry Bussiness

Corruption in Illegal Forestry Bussiness Process

KPK

Private (corporation

or individuals)

State Officials (functions of supervision,

regulation and licensing)

conspiration

CORRUPTIONCORRUPTION

Law 41/1999on Forestry

Law 31/1999on Corruption

Eradication

FORESTRY CRIMESFORESTRY CRIMES

FORESTRY“Lex specialis derogat lex generalis”

• Ministry of Forestry Officer and every officer that have authority in Forestry Management have to comply with all Forestry Law and Rules.

• Forest is part of State Wealth (Article 33 Indonesian Constitution)

• Person or Company that hold unlawful forestry license and get profit from any forestry crime.

Corruption Eradication Act Corruption Eradication Act in Forestry Crimein Forestry Crime

Definition of Financial StateBased on the explanation of Law Number 31 of the year 1999, the General section, the losses of financial state given limitedly restrictions, namely:

"Financial state in question all the wealth of the country in any form, separated or not separated, which includes all parts of the country's wealth and all the rights and obligations arising from.

LCE in Forestry crimeLCE in Forestry crimeState apparatus/officials in Forestry:• Article 2 and 3 LCE (Law on Corruption

Eradication): caused state losses• Article 11 and 12 (a) and (b) LCE : receive

a payment (bribery)• Article 5 (1) and (2) : give or promise

something to state apparatus (bribery)

1. COURT VERDICT (FINAL & BINDING) :a) Kalimantan Case (SAF – Former East Kalimantan

Governor, MTS, UUA & RBN) b) Sumatera Case (TAJ – Pelalawan Head of Regent)

2. ON TRIAL :a) Head of The Regional Office of Riau's Ministry of

Forestry Case (AR)

3. BEING INVESTIGATED :a) Siak Head of Regent (AAS), Head of The Regional

Office of Riau's Ministry of Forestry Case (ST & BH)

FORESTRY CASES THAT HANDLED BY FORESTRY CASES THAT HANDLED BY KPKKPK

“Any activity in the case of illegal exploitation of timber in a contravention of law, there have been losses to the state at least at the economic value of the logged timber.”

Expert Statement Opinion about Expert Statement Opinion about State losses within Forestry CrimeState losses within Forestry Crime

Case Background : • Provide unlawful recommendation for Palm Oil

Plantation, ( 1 Million Ha) • Temporary Right Approval in Forest Plantation

Business (temporary HPHTP) and Timber Utilization License (IPK) provided by Governor. (should receive Permit of Release Forest Area from Minister of Forestry.

• Provide Principal Approval for Land Clearing and Timber Utilization, provide dispensation for Bank Guarantee Submission Obligation of PSDH-DR IPK to companies of Surya Dumai Group in 2008 as well.

KALIMANTAN CASEKALIMANTAN CASE

Government Policy

Government Policy

ConspirationCompanies –

Gov. App.

ConspirationCompanies –

Gov. App.

Unlawful Recommendati

on and approval

Unlawful Recommendati

on and approval

Dispensation of Bank

Guarantee

Dispensation of Bank

GuaranteeLoggingLogging

State LossState Loss

KALIMANTAN CASEKALIMANTAN CASE

KALIMANTAN CASEKALIMANTAN CASE

Breaching of :a) Forestry and Plantation Technical Rules in Government Regulation No. 6/1999

on Forestry Business and Forestry Product Collection in Forest of Production;b) Decree of Minister of Forestry and Plantation No: 538/Kpts-II/1999, 12 July

1999 on Timber Utilization License;c) Decree of Minister of Forestry and Plantation No : 107/Kpts-II/1999, 3 March

1999 on Plantation Business License; d) Joint Decree of Minister of Forestry, Minister of Agriculture, and Head of

National Land Affairs Office No: 364/Kpts-II/1999, 519/Kpts/HK. 050/7/90 23-VIII-1990, 23 July 1990 on Rules of Forest Area Disposal and Lease Rights for Agriculture Business Development;

e) Decree of Minister of Forestry and Plantation No: 376/Kpts-II/1998, 8 April 1998 on Criteria of Forest Procurement for Palm Oil Plantation Cultivation;

f) Encyclic of Directorate General of Forest Production No: 1709/VI-PHH/1999, 27 July 1999 on Bank Guarantee Submission Obligation for Reforestation Funds and Forest Resources Provision for the Holder of Timber Utilization License.

KALIMANTAN CASEKALIMANTAN CASE• Infringement of Article 2 section (1) Jo. Article 18 Corruption

Eradication Criminal Act Jo. Article 55 section (1) Number-1 Jo. Article 64 section (1) Criminal Act.

• Infringement of Article 3 Jo. Article 18 Law of Corruption Eradication Criminal Act Jo. Article 55 section (1) Number-1 Jo. Article 64 section (1) Criminal Act.

• Total State Lost are Rp346.823.970.564,24 • Court Verdict:

Governor 4 year Imprisonment and Rp250.000.000 Fined.Company Director 18 months Imprisonment and Rp.346,8 B Fined.Head Office of The Forestry Departement and Head of The Regional Office Ministry of Forestry each 4 Years Imprisonment and Rp. 200.000.000,- finedAsset Recovered Rp346.8 B (USD 42 Million)

RIAU CASE (SUMATERA)RIAU CASE (SUMATERA)

Background Case: The unlawful issue of timber utilization licence of forest plantation for several companies which have already breached Technical Rules in Decree of Ministry of Forestry No. 10.1/Kpts-II/2000, 6 November 2000 on Guidance of IUPHHKHT Issue and Decree of Ministry of Forestry No. 21/Kpts-II/2001, 31 January 2001 on Criteria and Standard for Production Forest.

Government Policy

Government Policy

EstablishedCompaniesEstablishedCompanies

Obtaining License of

Forest Timber Utilization

Obtaining License of

Forest Timber Utilization

Take OverTake Over

LoggingLogging

State LossState Loss

SUMATERA CASESUMATERA CASE

PlantingPlanting

8 Companies

7 Companies

SUMATERA CASESUMATERA CASE• Infringement of Article 2 section (1) Jo. Article 18

Corruption Eradication Criminal Act Jo. Article 55 section (1) Number-1 Jo. Article 64 section (1) Criminal Act.

• Infringement of Article 3 Jo. Article 18 Law of Corruption Eradication Criminal Act Jo. Article 55 section (1) Number-1 Jo. Article 64 section (1) Criminal Act.

• Total State Lost are Rp 1.208.625.819.554,22 (USD 131 Million)

• Court Verdict: 11 Years Imprisonment and Rp 500.000.000,- Fined and additional sentence to pay compensation for Rp 12.367.780.000,-

Other Bribery Case on Forestry

1. AAN (member of the House Commission IV, which oversees forestry, agriculture and fisheries) receive a payment from AZW (regency secretary of Bintan) with the aim of persuading commision to give a recommendation on Forest Conversion Permit in Bintan by the Ministry of Ferest.

2. IBR (Jakarta High Administrative Court Judge) receive a payment from DLS (Enterpreneur on Palm Oil) and ADS (Lawyer of DLS) with the aim of persuading the Judgement on winning a land dispute against the Jakarta City Administration.

RECOMENDATION

• Strong Supervision of the government apparatus • Price adjustment in accordance of international

standard on the provision of forest resources • Focus on Asset Recovery for deterrence• Cooperation beyond the border & implementation of

affirmative action• Exchange information and notice on blacklisted and

non-ecofriendly product/company.• International Environmental Commitment.• Harmonization of Regulation and Law on Forestry

Thank you