Latest Graft Cases 'Not a Deterrent' to Corruption in Indonesia
by Eriko Uchida
25 March 2002
Despite being one of the most corrupt countries in the world, Indonesian officials continue to drag their feet in efforts to combat the crime. In the latest corruption case, the Central Jakarta District Court seemingly got tough by sentencing a former bank president to life, and his two accomplices to 20 years in jail each. But would the harsh sentences deter corruption in Indonesia? Legal experts said no. First, because Hendra Rahardja, former president of the now defunct BHS Bank, Eko Edi Putranto, the former bank commissioner and director Sherny Konjongian were tried in absentia. Second, because of the inconsistency of the court rulings, which could result in legal uncertainty. Third, because it was an inherent cultural trait of Indonesians to be conniving, dishonest and thieving.
Lawyers Todung Mulya Lubis and Frans Hendra Winata were both skeptical that court verdicts could stop white collar criminals. Legal inconsistencies were evident as shown by the wildly different sentences imposed on corruptors, usually depending on how much they could pay the judges and prosecutors to win them a favourable verdict.
Before Hendra and the other two defendants were sentenced for misusing Rp 2.6 trillion (US$260 million) of government funds, the same court had sentenced Bank Indonesia Governor Sjahril Sabirin to three years in jail for his involvement in Bank Bali scandal that cost the state Rp 904 billion.
On March 5, 2002, the West Jakarta District Court sentenced former director of Bank Umum Servitia, David Nusa Wijaya, to one year in jail and ordered him to repay the misused money of Rp 1.27 trillion to the state.
"Those cases caused huge financial losses to the state and the people. Why is it that one court sentence for a defendant is life, while another is only one year?" Frans questioned.
In 2001, the Berlin-based Transparency International ranked Indonesia the fourth most corrupt country in the world, after Uganda, Nigeria and Bangladesh.
Both Frans and Todung emphasized that law enforcers, especially prosecutors and judges, must view corruption as the country's number one enemy. It is what brought down the economy after the Thai bubble was similarly popped in 1997 by the high level of corruption there. This idea should be sustained by all judges, not just in the lower court, but also in the High Court and the Supreme Court.
There are many cases in which the higher court reduced the sentence of the lower court, or even overturned the verdict in favor of a suspect. A president can also grant a pardon, and usually does when it is one of his or her business cronies who, by being free, can further enrich the president or his or her family.
"A harsh jail term is not enough. If there is an allegation about a corruption case, the government must immediately seize and freeze the suspects' properties and assets, so corruptors would learn that the country is really serious about fighting graft," Todung said.
In its rulings, the district court should also order the prosecutor to seize the assets and sell them right away for a fair market price and turn the proceeds over to the state. The judges have the right to make such an order, even though there is not a permanent law in place as yet for seizing corruption defendant's assets.
"But judges hardly ever do so otherwise they would be biting the hand that feeds them," Todung said.
On March 21, the South Jakarta District Court ordered Hartono Mardjono, former executive of the Crescent Star Party (PBB) to pay Rp 2.8 billion to Yusril Ihza Mahendra, the party chairman and Minister of Justice and Human Rights, for illegally using the party's name. The court ruled that Mardjono had to immediately make the payment, despite the fact that he might still appeal the decision.
Court settlement of some major corruption cases
Defendant: Budiadji, former Kalimantan Logistics Agency head (Dolog) abnd good friend of former President Suharto. Case: Misuse of Rp 7.7 billion of Dolog's fund. Legal status: Sentenced by Balikpapan District Court to life for subversion in 1977, freed in 1988 after spending 12 years in jail.
Eddy Tanzil, former president of PT Golden Key and business crony of Bambang Suharto. Manipulation of Rp 1.3 trillion. C. Jakarta District Court gave him 20 years in jail in 1994. He escaped from jail after serving the sentence for two years.
Nurdin Halid, former chairman of Ujung Pandang cooperative association (Puskud). Manipulation of Rp 115.7 billion of Puskud fund. Ujung Pandang District Court acquitted Nurdin from graft charge in 1999
Tommy Suharto, former commissioner of PT Goro Batara Sakti (PT GBS) and youngest son of former President Suharto. Manipulation of Rp 95.4 billion in Bulog land scam deal. S. Jakarta District Court acquitted him from corruption charge in 1999. Supreme Court sentenced him to 18 months in jail. In 2001, Supreme Court shifted its earlier decision, declaring Tommy not guilty. Tommy masterminded the assassination of the judge who had originally convicted him.
Ricardo Gelael, former executive of PT GBS and business crony of former President Suharto. Manipulation of Rp 95.4 billion in Bulog land scam deal. S. Jakarta District Court acquitted him from corruption charge. Supreme Court sentence him to 18 months in jail. He was released last August after spending 11 months in jail.
Djoko S. Tjandra, former director of PT Era Giat Prima. Manipulation of Rp 904 billion Bank Bali scandal. S. Jakarta District Court acquitted him from graft charges in 2000. Supreme Court upheld the verdict.
Pande N. Lubis, former deputy chairman of IBRA. Manipulation of Rp 904 billion Bank Bali scandal. S. Jakarta District Court acquitted him from graft charges in 2000. His case is currently being handled by Supreme Court.
Muhammad "Bob" Hasan, former director of PT Mapindo Parama and golfing buddy and business crony of former President Suharto. Manipulation of US$244 million of forestry funds. C. Jakarta District Court sentenced him to 2 years in jail for US$ 75 billion corruption in 2001. Supreme Court increased the term to six years. Supreme Court was reviewing the case.
Sapuan, former deputy chairman of Bulog Manipulation of Rp 35 billion. S. Jakarta District Court sentenced him to 2 years in jail in 2001.
Suwondo, former president Abdurrahman Wahid's masseur. Manipulation of Rp 35 billion. N. Jakarta District Court sentenced him to 3 and a half years in jail.
Beddu Amang, former chairman of Bulog. Manipulation of Rp 95.4 billion. S. Jakarta District Court sentenced him to 2 years in jail in 2001. He was not detained, the appeal was being handled by the Jakarta High Court.
