I’ve been following this corruption case from Rembang, Central Java since early last year. It involves the mark-up of land bought by a District Government Owned Enterprise (BUMD) that BPK, the State Audit Agency, initially estimated to have resulted in losses of Rp. 5.2 billion ($580,000). The case involves the current Bupati, Moch Salim, from the Democrat Party. The case was brought to public attention in 2009 and it has been under investigation since. Moch Salim won a second term in office in 2010.
For the past year the investigation has been delayed because of confusion over the requirement for BPK to complete the State Losses Calculation (PKN – Perhitungan Kerugian Negara). The police, who are investigating the case, have requested BPK to audit the transactions involved and estimate the losses, but initially BPK advised the Police that it was unnecessary and that they could use the estimate included in the original routine audit that uncovered indications of corruption. Recently, BPK has agreed to reestimate the losses. This quote from Suara Rembang.Net (see here)
The Coordinator of the local branch of the Institute for Community Empowerment Research Coordinator (LASPEM), Bambang Widodo, said on Monday (30/1) that the investigation of alleged corruption in the RBSJ Company has delayed partly because of BPK has not issued the PKN [State Losses Calculation].
“The assistance of KPK in the supervision of the PKN are specified in the letter numbered R 232/40-43/01/2012 and dated January 17, 2012 and which we received today (30 / 1),” he said.
The letter, signed by Handoyo Sudradjat on behalf of Deputy Internal Monitoring and Public Complaints of the Corruption Eradication Commission was issued after receiving a complaint LASPEM regarding delays in publication of the PKN relating to alleged corruption in the regional company owned by the Rembang District Government.
Koordinator Lembaga Studi Pemberdayaan Masyarakat (Lespem) Kabupaten Rembang, Bambang Wahyu Widodo, Senin (30/1) mengatakan pengungkapan dugaan korupsi di PT RBSJ terhambat penanganannya antara lain karena belum juga diterbitkannya PKN oleh BPK.
“Bantuan KPK untuk supervisi PKN tersebut tertuang dalam surat bernomor R 232/40-43/01/2012 tertanggal 17 Januari 2012 yang kami terima hari ini (30/1),” kata dia.
Surat yang ditandatangani oleh Handoyo Sudradjat atas nama Deputi Bidang Pengawasan Internal dan Pengaduan Masyarakat pada Komisi Pemberantasan Korupsi terbit setelah menerima pengaduan Lespem terkait belum juga terbitnya PKN atas kasus dugaan korupsi di perusahaan daerah milik Pemkab Rembang tersebut.
KPK’s commitment to monitor the process is helpful, but it’s unlikely to guarantee progress. It would have more teeth if it was likely that KPK would take-on the case itself. This is probably unlikely in this case as the initial estimate of state losses is probably too low for KPK. But other criteria could also come into play. Will continue to monitor this case–it will be interesting to see if there are any changes from the initial estimate.
h/t KP2KKN, see here.
Everyday, Corruption 
Loving your blog. Any sense if your own presence in monitoring progress in the Rembang case has any effect on the case’s progress (or otherwise)?
Thanks mate. I think it’s highly unlikely that my blog will have any effect on the outcome in the Rembang case. Civil society and media monitoring of local cases is important; if the case leaves the public eye then I think there’s almost no chance that a case will proceed. But such monitoring in no way guarantees progress, particularly when the suspect is from the President’s party and has connection further up the party. So I would think that in this case either his political connections must weaken–I understand that Moch Salim is connected to the Marzuki Alie faction of PD–or he loses office and/or leadership of the local DPC. If that happens the case might proceed. The other option is for mass mobilization at the local level, but this is unlikely in the Rembang case because of the local power structure. Of course if KPK picks-up the case then these political factors are much less important.
[…] the current Bupati Moch Salim has been under investigation since 2009, about three years (see here and here). It is still stuck were it has been for the past year: the President has not provided […]
[…] over the investigation of current Rembang Regent, Moch Salim (Democrat)–for background see here, here and here. The case was originally reported to KPK but was delegated to the Regional Police. […]
[…] Police investigate Moch Salim in relation to the PT. RBSJ corruption case–for background see here, here, here, here and […]