Several advocacy groups express their concern that the legal process against two rights activists, Haris Azhar and Fatia Mulidiyanti, who was accused of defaming Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, could negatively impact democracy and civil liberties in Indonesia.
Meanwhile, in a press release, the Executive Director of Kurawal Foundation, Darmawan Triwibowo, argued that Luhut actually has no “good reputation” left to defame, which is the main subject of this case. Therefore, Darmawan claimed that this case does not have an adequate basis to be pursued.
Darmawan’s claim was based on data from three international reports dating back from 2016. These reports revealed Luhut’s involvement in hidden wealth, tax evasion, secret transactions, and money laundering cases involving some of the richest and most powerful people in the world, namely the Panama Papers (2016), The Hidden Buyers (2019), and Pandora Papers (2021).
As explained by Kurawal, in the Panama Papers, Luhut was suspected of holding a position as Director of Mayfair International Ltd, a shell company in the Republic of Seychelles, a tax haven country in Africa, owned by two companies: PT Persada Inti Negeri and PT Buana Inti Negeri. These two companies, directly or indirectly, are connected to Luhut through PT Toba Bara Sejahtra Tbk.
Meanwhile, in the Pandora Papers, Luhut is also indicated to have played a similar role through a company called Petrocapital SA, registered in the Republic of Panama. In that company, Luhut was appointed as President Director in a meeting held on March 19, 2007, as reported by Kurawal.
Kurawal also cited a report from Global Witness in “The Hidden Buyers” that highlighted the lack of transparency in the sale of 61.79 percent of Toba Bara Sejahtra’s shares on November 9, 2016, to a Singaporean company, Highland Strategic Holdings, owned by asset manager Watiga Trust Pte.
Kurawal explained that secrecy surrounding the transaction obscured the ultimate ownership of the shares being traded. The transaction, which was estimated to be worth US$71.8 million, along with information about the amount of money received by Luhut as a controlling investor, was never disclosed to the public.
Furthermore, Kurawal stated that Luhut’s name was also mentioned in the “Coalruption – Elit Politik dalam Pusaran Bisnis Batubara” report written by Coalition for Clean and Fair Elections in Indonesia in 2018. The report alleged Luhut’s involvement in a conflict of interest, influence peddling, and political corruption related to licensing and management of coal mines in East Kalimantan.
Kurawal explained that in integrating business and politics in the coal sector, Luhut was also suspected of using the old structure of political oligarchies, such as the presidential palace, the military, and political parties, especially the Golkar Party.
“He also utilizes the new landscape of decentralization, collaborating with local elites and rulers”, Kurawal added.
Kurawal further noted that, Luhut has affiliations with Aburizal Bakrie, Idrus Marham, Azis Syamsuddin, Syaukani Hasan Rais, dan Rita Widyasari within the Golkar Party. Three of Luhut’s circle – Idrus, Azis, dan Rita – are currently facing legal proceedings for corruption.
Kurawal concludes that due to Luhut’s involvement in the conflict of interest, political corruption, tax evasion, money laundering, and asset concealment, his reputation is questionable.
“Kurawal believes that there is no longer any good reputation left for Luhut Binsar Pandjaitan to tarnish”.
Darmawan also urged President Joko Widodo to remove Luhut Binsar Pandjaitan from his position as Coordinating Minister for Maritime Affairs and Investment in the Indonesia Maju Cabinet. “It’s time for #LuhutOut”, quoted from Kurawal press release.
