Indonesia has suspended several officials in connection to the AirAsia Flight QZ8501 disaster after preliminary results of the investigation indicate that the AirAsia airplane was not authorized to fly on Sundays (hence detecting a flight schedule violation). The AirAsia plane went down in the Java Sea on Sunday 28 December 2014, en route from Surabaya (East Java) to Singapore, presumably killing all 162 people on board. Authorities have barred the airline from flying this route until the investigation is over.

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Former Chairman of the Democratic Party (Partai Demokrat, PD) Anas Urbaningrum was sentenced to eight years imprisonment by the Jakarta Anti-Corruption Court in Jakarta on Wednesday (24/09). Urbaningrum was found guilty of sustained corruption and repeated money laundering. He was also given a fine of IDR 300 million (USD $25,000). The sentence is much lower than the prosecution’s demand for 15-years imprisonment and therefore it is likely that the Corruption Eradication Commission (KPK) will appeal.

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Indonesia’s seventh president Joko Widodo, who will take office on 20 October 2014, wants to conduct several reforms in Indonesia’s energy sector in an attempt to combat illegal practices and optimize state income. Firstly, Joko Widodo, popularly known as Jokowi, plans to audit operations of state-owned Pertamina’s energy trading unit Petral to halt alleged fuel smuggling and corruption. Secondly, Jokowi wants to impose major changes at Pertamina. Lastly, the president-elect wants to curb coal exports to ensure domestic supplies for power plants.

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J Trust, a Japan-based company engaged in the finance, real estate, IT system, as well as amusement sectors, is reportedly buying Indonesia’s Bank Mutiara (formerly known as Bank Century). Bank Century made headlines due to a controversial government bail-out in 2008 amid the economic crisis when the bank was said to be on the brink of collapse (the impact of which would spread to other local banks). Bank Century then obtained a capital injection of IDR 6.7 trillion (USD $573 million) from the country's Deposit Insurance Agency (LPS).

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Former Chairman of the Democratic Party (Partai Demokrat, PD) Anas Urbaningrum could face 15 years in prison and a fine of IDR 500 million (USD $42,372), or an additional five-month imprisonment, as the Indonesian prosecution finds him guilty of accepting bribes related to several government projects that are (partly) financed by the state budget. In addition to the above, the prosecutor also demands that Urbaningrum compensates the state by reimbursing the IDR 94.2 billion and USD $5.3 million he obtained unlawfully.

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Indonesian Energy and Mineral Resources Minister Jero Wacik has been named a suspect in a corruption case by the country’s Corruption Eradication Commission (KPK). Allegedly, Jero Wacik was involved in the case that led to a seven-year prison sentence for former Head of Indonesia's oil & gas regulator SKKMigas Rudi Rubiandini (for money laundering as well as accepting bribes from Singapore-based Kernel Oil Pte Ltd and Indonesia-based Kaltim Parna Industri in return for awarding a lucrative tender to sell oil).

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The security status in Jakarta has been raised one day ahead of the ruling of Indonesia’s Constitutional Court (Mahkamah Konstitusi) on Thursday (21/08) as the Jakarta administration anticipates public protests. The Constitutional Court will decide on defeated presidential candidate Prabowo Subianto’s claims that the election result of Indonesia’s July presidential election was influenced by massive fraud and violations (in both the voting and counting process). According to the official result Joko Widodo won with 53.15 percent of the votes.

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Today (06/08), the first session of defeated presidential candidate Prabowo Subianto’s legal challenge started. Based on data from the General Elections Commission (KPU), Indonesia’s July 2014 presidential election was won by Joko Widodo (Jokowi) with 53.15 percent to 46.85 percent of the votes. However, Subianto claims that the KPU’s outcome was influenced by fraud and other violations, leading to 50 million troubled votes in more than 200,000 Indonesian polling stations, and therefore challenges the result at the Constitutional Court.

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As is known, presidential candidate Prabowo Subianto did not accept his defeat in Indonesia’s July 2014 presidential election and pledged to challenge the election result in the country’s Constitutional Court (Mahkamah Konstitusi). In last month’s presidential race, Subianto was defeated by Joko Widodo (popularly known as Jokowi) by 53.15 percent to 46.85 percent. However, the defeated contender claims that there have been many cases of fraud or violations at the polling stations on Election Day (9 July 2014).

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Controversial former army general Prabowo Subianto, who was defeated in Indonesia's 2014 presidential election, is expected to challenge the election result in the Constitutional Court, claiming that the election has been influenced by massive vote fraud. Yesterday (22/07), prior to the official release of the election result by the General Elections Commission (KPU), Subianto already withdrew from the recapitulation process. Rival Joko Widodo (Jokowi) won the election securing 53.15 percent of the votes.

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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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With Indonesia's presidential election approaching (9 July 2014), investors - both domestic and foreign - have become more hesitant to commit to large investments, instead preferring to wait for the election results first. Obviously, investors want to see a 'market friendly' president to lead Southeast Asia's largest economy for (at least) the next five years; a ruler who can safeguard a conducive investment climate. For the Indonesian people, a just ruler is needed; one who can improve Indonesia's political and social issues.

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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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If presidential elections were to be held today, it is probable that Prabowo Subianto would be chosen by the Indonesian electorate to become Indonesia's next president. Various surveys indicate that Prabowo, a former high military officer as well as a successful businessman, is the most popular person to replace incumbent president Susilo Bambang Yudhoyono in mid 2014 when new presidential elections will be held (which are not joined by Yudhoyono as he is finishing his second and final term as president).

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Although Indonesia’s next presidential election will be held in mid-2014, Aburizal Bakrie already announced in 2012 that he would run for the presidency on behalf of the Golkar party, one of the leading political parties of Indonesia and once the strong political vehicle of Suharto during the New Order regime (1965-1998). However, Bakrie, chairman of Golkar and often referred to by his nickname 'Ical', is one of the most controversial figures in modern Indonesian politics and business.

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Last Saturday, the Democratic Party (PD) selected Indonesia's president Susilo Bambang Yudhoyono as the new chairman of the crumbling political party through an extraordinary congress in Bali. Yudhoyono thus replaced former chairman Anas Urbaningrum, who resigned from his post last month after being accused of involvement in a corruption case. It will be Yudhoyono's task to repair the image of his PD party, while still performing his duties as president.

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Yesterday it was announced that the Bakrie Group, one of Indonesia's most controversial and richest conglomerates, has signed a heads of terms agreement that sets out conditions for the Bakrie's withdrawal from London-listed coal miner Bumi Plc. Bumi Plc, having the largest coal deposits in Indonesia at its disposal, was established in 2010 by British financier Nathaniel Rothschild and the Bakrie Group to bring coal assets to European investors.

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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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