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View all search resultsThe AGO's star has been brightening as the KPK's has been waning over recent years and especially in recent months with a handful of high-profile graft cases, leaving analysts wondering about the political and legal machinations behind these developments.
Despite its scheduled dissolution in 2025, new revelations have emerged regarding the massive graft case at state-owned insurer PT Jiwasraya. The case, which led to state losses of Rp 16.8 trillion (US$1.06 billion), is among the largest financial scandals in Indonesia’s history. The Attorney General’s Office (AGO) recently named Isa Rachmatarwata, the Finance Ministry’s budget director general, as a suspect in the case. According to the AGO, Isa allegedly played a key role in approving Jiwasraya’s ill-fated JS Saving Plan in 2009 despite knowing that the company was already financially insolvent at the time.
The AGO has arrested a PDI-P lawmaker who was the regent of West Kutai when the alleged forged documents were issued, which were then used by several companies to prove their ownership of an East Kalimantan mine confiscated to reclaim state losses incurred in the Jiwasraya corruption case.
While Indonesia may have avoided any direct fallout from the bank failures in the United States and Europe earlier this year, local financial institutions face the same difficulties stemming from the lack of good governance that was at the root of those collapses.
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