Nadiem Makarim Sentenced to 10 Years
The Jakarta Corruption Court sentenced on Tuesday former education minister Nadiem Makarim to 10 years in prison for causing state losses in a case involving the procurement of Chromebook laptops during his time in office. His prison sentence was lighter than the 18 years demanded by Attorney General’s Office (AGO) prosecutors. The panel of judges said the laptop procurement program, part of Nadiem’s education digitalization program, had failed to achieve its intended purpose, resulting in Rp 1.57 trillion (US$87.6 million) in state losses. “The Chromebook laptop procurement was not optimal because the devices could not be used due to the lack of internet access in many regions in Indonesia,” Judge Mediantos said while reading out the verdict. “As a result, many Chromebooks could not function as intended, meaning the state budget did not generate benefits in line with the amount spent.” Aside from the prison sentence, the court also ordered him to pay a Rp 1 billion in fine and Rp 809 billion in restitution. However, Judge Andi Saputra of the five-judge panel dissented, saying he saw no convincing evidence that Nadiem had acted with malicious intent or was corrupt. Nadiem presented his defense notes on June 2 and asked the judges to acquit him of all charges, arguing that the prosecution stemmed from bureaucratic resentment rather than genuine wrongdoing. He also disputed the prosecution’s framing of the Chromebook procurement as a scheme for self-enrichment, claiming instead that the project had saved the state Rp 3.9 trillion. But AGO prosecutors maintained that he had abused his authority and professional expertise for personal gain.
Nadiem, 41, became one of the country’s youngest cabinet members in 2019 and served as education minister under the administration of then-president Joko “Jokowi” Widodo until 2024.The Ivy League graduate left Gojek to serve in the government. Nadiem’s case has prompted outcry over what many deem as an unfair punishment sought for one of the country’s most prominent tech entrepreneurs. It has also deepened anxieties over whether talented and highly educated professionals can safely contribute to the country without being entangled in an “unpredictable” legal and political system. Attending Tuesday’s hearing in support of Nadiem were former finance minister Chatib Basri, prominent lawyer Todung Mulya Lubis and human rights activist Delpedro Marhaen, while dozens of ride-hailing motorcycle taxi drivers staged a rally supporting Nadiem outside the court and filled the court’s lobby.
Unusual Legal Protection for Bond Investors
Indonesia is dangling unprecedented legal protections for investors in President Prabowo Subianto’s sovereign wealth fund, a move analysts warn could attract money with questionable origins and further erode the reputation of Southeast Asia’s largest economy. Buried in a 207-page financial-sector law published this week is a provision that shields purchases of bonds from the fund, known as Danantara, from criminal, civil or tax probes. It also says bond records can’t be used for tax assessments or evidence in court proceedings. The no-questions-asked immunity on the source of money goes beyond tax amnesty programs offered previously by Indonesia — as well as notable efforts by Argentina, Italy and Russia — as it’s enshrined in law that appears to have no sunset provision.
“This is like a more-permanent deal dressed up as a bond scheme,” said Achmad Sukarsono, associate director at Control Risks. “Indonesia needs deeper domestic funding, and the old tax amnesties did show hidden capital can be pulled in,” he said. But it “looks too eager to make the product irresistible. And that’s where it’s messy. It may raise money now, but it also says legal cleanliness can bend when the state needs to”. (The Edge, Malaysia)