In a damning statement, Corruption Eradication Commission (KPK) prosecutors told the Jakarta Corruption Court on Wednesday that they believed the nation’s tax chief and a brother in law of President Joko
“Jokowi” Widodo had played a significant role in a bribery case involving senior taxman Handang Soekarno.

Handang stands accused of accepting bribes from PT EK Prima Indonesia (PT EKP) country director Ramapanicker Rajamohanan Nair in return for helping the latter evade taxes. Prosecutors demanded that he be sentenced to 15 years in prison and fined Rp 750 million (US$56,300).

However, the KPK claimed on Wednesday that the defendant had not acted alone.

Prosecutors argued that Director General of Taxation Ken Dwijugiasteadi, Jakarta Special Tax Office head Muhammad Haniv and Arif Budi Sulistyo, the President’s brother in law, had also taken part in the scheme.

The KPK claimed Haniv had ordered Handang to facilitate a meeting between Arif, businessman Rudi P Musdiono and Ken to discuss Rajamohanan’s request to cancel his overdue tax collection letter (STP PPN) so he could join President Jokowi’s tax amnesty program. The meeting was held on Sept. 23, 2016, on the fifth floor of the Directorate General of Taxation building.

Arif and Ken testified in court that they had not discussed Rajamohanan’s tax problems during the meeting and Ken had only explained the tax amnesty program to Arif and Rudi.

Prosecutor Zainal Abidin told the bench that it was highly unusual for the director general of taxation himself to hold an exclusive meeting to explain the tax amnesty to individual taxpayers, including by presenting a video ad of the program.

The Finance Ministry, he said, had already established a team, dubbed “Team 100,” to disseminate information on the tax amnesty.

“We believe the meeting between Arif, Rudi and Ken didn’t just discuss individual tax amnesty applications; it touched on the problems faced by PT EKP for not being able to join the program due to [Rajamohanan’s] STP PPN,” Zainal said.

He added that the conclusion was further corroborated by WhatsApp conversations between Arif and Handang that occurred on Oct. 3, more than a week after Arif’s meeting with Ken.

Arif texted Handang: “Whatever Pak Dirjen’s decision, I hope it’s the best for Mohan, sir. Thank you.”

He was referring to Ken using his rank and to Rajamohanan using the latter’s nickname.

The messages showed that there were prior talks between Arif and Ken on the latter’s future decision regarding Rajamohanan’s request, Zainal said.

Arif, who gave his testimony as a witness in Rajamohanan’s trial in mid-March, acknowledged that he had aided Rajamohanan in the latter’s efforts to include PT EKP in the tax amnesty. He denied any involvements in the bribery case.

“I asked Pak Mohan to send documents related to his companies to me and after I received them, I forwarded them directly to Pak Handang without reading them,” said Arif, who is married to Jokowi’s youngest sister, Titik Relawati.

The President said in mid-February that he would not interfere with the ongoing investigation.

“Whenever someone does something wrong, they should be legally processed. We all respect the legal process [...] and I am sure that the KPK will work professionally in investigating the case,” Jokowi said. (kuk)

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