Jiwasraya Case Becomes Political Issue

Alleged corruption at state-owned insurance company PT Asuransi Jiwasraya has become a political issue at the House of Representative.

ANTARA/MUHAMMAD IQBAL

PT Hanson Internasional commissioner Benny Tjokrosaputro, in handcuffs and a detention vest, arrives at the Jakarta headquarters of the Corruption Eradication Commission (KPK) for questioning on Friday (31/1/2020). Benny has been named as a suspect in the corruption case involving state-owned insurer PT Asuransi Jiwasraya.

JAKARTA, KOMPAS – Alleged corruption at state-owned insurance company PT Asuransi Jiwasraya (Persero) that is estimated to have inflicted losses of Rp 27 trillion (US$1.93 billion) on policyholders and the state has become a political issue at the House of Representative. Opposition factions have proposed the formation of a special committee (Pansus) in using their inquiry right to investigate the Jiwasraya case. However, the government factions, which control a majority of legislature seats, say a working committee (Panja) is all that is needed to handle the case.

The proposal for the establishment of a Jiwasraya inquiry committee was submitted by representatives of the Democratic Party and Prosperous Justice Party (PKS) to House Deputy Speaker Aziz Syamsuddin on Tuesday. The proposal was signed by 104 House members from the Democratic Party and the PKS, easily meeting the requirements for the establishment of such a committee, namely more than 25 House members from more than one faction. The proposal will be taken to the House plenary meeting for approval.

The deputy chairman of the Democratic Party faction, Benny K. Harman, said Jiwasraya was not an ordinary criminal case. There is a political nuance behind the alleged corruption at the state-owned enterprise. Therefore, the formation of a special inquiry committee was needed to fully investigate alleged corruption at Jiwasraya, including those who may be involved.

Whether it has something to do with the Palace or not, we will dig deeper during the investigation

Working committees established in three House commissions – namely Commission III, Commission VI and Commission XI – have already begun their activities, but the opposition considers this insufficient to probe the case. The special committee, or Pansus, which comprises a number of commissions, has the authority to conduct investigations and the right to ask state officials to provide information, while working committees under commissions carry out supervision only through hearings or public hearings.

According to Benny, the Democrats suspect systematic corrupt practices at Jiwasraya to divert large amounts of money for certain purposes, such as for campaigning in the 2019 general election.

"Whether it has something to do with the Palace or not, we will dig deeper during the investigation," said Benny.

Coordinating Political, Legal and Security Affairs Minister Mahfud MD emphasized that President Joko “Jokowi” Widodo wanted Jiwasraya to be thoroughly investigated. "The President has asked for the case to be taken to the court. Whoever is involved, ‘beat’ them," said Mahfud (Kompas, 1/16/2020).

KOMPAS/PRIYOMBODO

A trash picker walks past the office of PT Asuransi Jiwasraya on Thursday (9/1/2020) in Jakarta. A State Audit Agency (BPK) investigation into the state-owned insurer Asuransi Jiwasraya in 2018 discovered corporate mismanagement that is alleged to have incurred losses to both the company and the state.

Political aspect

According to Arsul Sani, a member of the Jiwasraya working committee of Commission III, a special committee would have the power to reorient the investigation of the Jiwasraya case to political aspects, so that important matters in the case, such as returning money to customers, could be ignored.

He also said the Jiwasraya problem had existed since 2004, when Democratic Party chairman Susilo Bambang Yudhoyono served as president. However, according to him, the handling of the case was patchy. Now, the government wants to solve it completely.

The three working committees in commissions III, VI and XI have held their first meetings and prepared work mechanisms and schedules. "The purpose of the working committees is not interference but a supervisory function, so that this case can be quickly resolved," said the head of the Jiwasraya working committee at Commission III, Herman Hery, who represents the PDI-P faction.

House Commission XI member Ecky Awal Mucharam of the PKS faction proposed that the three working committees be merged into a special committee. According to him, the work of the working committees will not be effective, because it is carried out by different commissions. According to him, the establishment of a special committee is appropriate, because the Jiwasraya case has caused huge losses to the state.