Consumer Products / Retail
Abu Dhabi, United Arab Emirates
Nationality of Foreign Officials: Indonesia
Summary of Allegations:
Arif Budi Sulistyo ("Arif"), the brother-in-law of President Joko Widodo and operational director of PT Rakabu Sejahtera--the company held by many members of President Widodo's extended family--allegedly asked Muhammad Haniv ("Haniv"), the head of the Jakarta Special Tax Office, to resolve a tax problem faced by EK Prima Exports Indonesia, the local unit of Lulu Group International.
Haniv directed Arif to Handang Soekarno ("Handang") and Ken Dwijugiasteadi ("Ken"), the Director General of Taxation. After meeting with Arif, Ken directed his staff to eliminate the company's tax bill of Rp 78 billion (USD 5.8 million).
Allegedly, Ramapanicker Rajamohanan Nair ("Nair"), the director of EK Prima Exports Indonesia, authorized Rp 1.9 billion in bribes to Handang to eliminate the company's tax bill.
Approximate Alleged Payments to Foreign Officials: Rp 1.9 million
Business Advantage Allegedly Obtained: Elimination of a Rp 78 billion (USD 5.8 million) tax bill
Agencies: Indonesia: Corruption Eradication Commission
Results:
Year Resolved: 2017
Compliance Monitor:
Ongoing: No
Details:
Indonesia's Corruption Eradication Commission ("KPK") arrested Handang and Nair on 22 November 2017 on charges of bribery. As part of its investigation of Nair, the KPK has questioned Arif as a witness.
On 17 April 2017, Nair was convicted of bribing Handang and sentenced to three years in prison and fined Rp 200 million (USD 15,082).