Quite similar to the events in Hong Kong – where protesters have been demonstrating for months to express their objection to an extradition bill that would have given more power to China (and considering protests did not stop when the Hong Kong government announced it suspended the controversial bill, the movement has morphed into something much larger) – there have been several straight days of protests in Indonesia, especially in the bigger cities on Java and Sumatra.

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While the central government of Indonesia is eager to improve the nation's investment climate, the Anti-Bribery Commission of Japan (ABCJ) reported a number of illegal charges that were requested by Indonesian government officials or civil servants from Japanese companies that operate in Indonesia. Such cases of corruption damage the attractiveness of Indonesia's investment climate.

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Setya Novanto, the Chairman of Indonesia's House of Representatives (DPR), has been named as suspect in a corruption case by the country's corruption watchdog Corruption Eradication Commission (in Indonesian: Komisi Pemberantasan Korupsi, or KPK). The case involves the large-scale procurement project for the electronic identity card or e-ID card.

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During the last couple of years of Susilo Bambang Yudhoyono (SBY)'s second cabinet (2009-2014) there erupted a number of high profile corruption cases that involved several of his ministers as well as leading figures in his Democratic Party (in Indonesian: Partai Demokrat, abbreviated as PD). As a result, the PD party dropped significantly in the 2014 parliamentary election (this loss was also caused by the inability of SBY to find a new charismatic leader for the party, while SBY himself could not participate in the 2014 presidential election as he was finishing his final presidential term).

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Former Garuda Indonesia CEO Emirsyah Satar, who currently serves as Chairman of Lippo Group's MatahariMall.com, was named a suspect in a corruption case by Indonesia's anti-corruption watchdog known as the KPK (Komisi Pemberantasan Korupsi). KPK spokesman Febri Diansyah said the corruption case involves a bribery case that is linked to several parties in a number of countries. The agency will give a press conference to share more details later on Thursday (19/01).

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Indonesia's Regional Representatives Council speaker Irman Gusman will be removed from his position on Tuesday (20/09) after being named a suspect by the nation's anti-corruption watchdog (Corruption Eradication Commission, or KPK) in Indonesia's latest corruption case. Allegedly, Gusman accepted a IDR 100 million (approx. USD $7,500) bribe for lobbying to manipulate West Sumatra's sugar import quota. Earlier this year State Procurement Agency Bulog imposed the quota to a company called CVSB. It is yet another graft case related to Indonesia's import quota system for food commodities.

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Indonesian Agriculture Minister Andi Amran Sulaiman has a strong suspicion that the "rice mafia" is behind the recent fluctuations in rice supply and prices in Indonesia. Suspicion emerged after new rice supplies suddenly 'flooded' Indonesian markets in February when prices of rice had already risen due to the scarcity of supplies. Sulaiman believes there is a cartel consisting of six big Indonesian rice distributors that deliberately hid rice output after last year's harvest and waited for prices to rise significantly before supplying rice to the markets in order to see higher profits.

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The European Central Bank’s decision to introduce a 60 million euro per month bond-buying program (quantitative easing) up to September 2016 - a move to boost the Eurozone economy - has caused positive sentiments in Indonesia as increased global liquidity is expected to benefit emerging markets. The benchmark stock index of Indonesia rose 1.35 percent hence hitting a new all-time high at 5,323.88 points. Meanwhile, the rupiah appreciated 0.23 percent to IDR 12,459 per US dollar based on the Bloomberg Dollar Index.

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After a week of speculation, Indonesian President Joko Widodo presented the composition of his working cabinet on Sunday afternoon (26/10). The final composition took some time as 8 of Widodo’s ministerial candidates failed to pass the screening of the country’s Corruption Eradication Commission (KPK) and the Financial Transaction Reports and Analysis Center (PPATK). Although Widodo was not forced to have his candidates screened by these two institutions, he wanted to make sure that they have clean records in terms of corruption.

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The market is eagerly awaiting the names of the ministers inside the cabinet of President Joko Widodo (Jokowi). However, the market needs to be a bit more patient as there has been a problem with the initial list that was submitted by Jokowi to the Corruption Eradication Commission (KPK) and the Financial Transaction Reports and Analysis Center (PPATK). Reportedly, 30 percent of the ministerial candidates mentioned on the list did not pass the screening of the KPK due to (perceived) corrupt behaviour or troubled financial records.

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The market showed today (27/10) that the composition of Indonesian President Joko Widodo’s cabinet did not live up to expectations. On Sunday afternoon, Widodo had announced the names of the ministers inside his Working Cabinet (Kabinet Kerja) after having delayed the announcement for almost a week as several of his ministerial candidates needed to be replaced having been red flagged by the country’s Corruption Eradication Commission (KPK). This then heightened expectations that Widodo’s cabinet would constitute a ‘dream team’.

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On Tuesday (29/04), Jakarta's Anti-Corruption Court sentenced Rudi Rubiandini, former Head of Indonesia's oil & gas regulator SKK Migas, to seven years in prison for money laundering and accepting bribes from Singapore-based Kernel Oil Pte Ltd and Indonesia-based Kaltim Parna Industri. These bribes were given in exchange for securing a win in an oil tender. In addition, Rubiandini was imposed a fine of IDR 200 million (or another three months in prison). Rubiandini was reported to not file an appeal to the court's verdict.

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The tax crime case which involves Bank Central Asia (BCA), Indonesia's largest lender by market value and the second-largest bank by assets, is not expected to have a significant impact on the performance of the shares of BCA. Earlier this week, Hadi Poernomo (Director General of taxation from 2002 to 2004) was questioned by Indonesia's Corruption Eradication Commission (KPK) on allegations of accepting bribes in exchange for tax exemptions - worth of IDR 375 billion (USD $32.8 million) - granted to BCA.

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Late on Tuesday evening (13/08), the Corruption Eradication Commission (KPK) arrested Rudi Rubiandini, head of the Upstream Oil and Gas regulatory special task force (SKK Migas) for allegedly accepting bribes amounting to USD $400,000 from Kernel Oil Pte Ltd, which is headquartered in Singapore. Four other people were also arrested in connection with this case. Rubiandini is currently being questioned by the KPK. The institution has one day to determine Rubiandini's legal status.

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In my previous column, I outlined the emergence of a new and promising class of Indonesian consumers that is most likely to bring a positive effect on the country's economic growth in the years ahead. I also pointed out that the level of prosperity of a population is an influential factor towards the state (and future) of democracy in a country: the wealthier a population becomes in terms of per capita GDP, the longer the life expectancy of its democracy will be.

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Just a few years ago, Susilo Bambang Yudhoyono's Democratic Party (in Indonesian Partai Demokrat or PD) enjoyed huge popularity among Indonesia's population. More than one fifth of the electorate voted for the 'Democrats' in the 2009 parliamentary election, a notable achievement in Indonesia's pluralistic society. In particular, the party's hard stance towards corruption was likened by the people. Now, however, the party crumbles under its own weight.

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