JAKARTA - The Indonesian Audit Watch (IAW) assesses that the state repeatedly demonstrates systemic failures in asset governance, especially in handling assets from law enforcement. The state is considered to be proficient in confiscating and decisively deciding cases, but weak when it comes to calculating and managing the economic impact of its own actions.
IAW Founding Secretary Iskandar Sitorus said that the practice of criminal law enforcement often leads to paradoxes. The state punishes corruptors, but at the same time it harms state-owned enterprises (SOEs) which should be protected.
"There is an absurd drama. The state punishes corruptors, but in the same process it unknowingly gnaws at its own business body," said Iskandar, Wednesday, December 24.
IAW noted at least three events that are interrelated and reflect the problem. First, the case of Perum Percetakan Negara RI (PNRI) which was financially depressed due to legal proceedings. Second, the handling of the PT Timah case which actually showed a different and more progressive approach. Third, uncertainty in the enforcement of forest areas which have the potential to repeat similar mistakes.
According to Iskandar, the problem with PNRI started from the euphoria of eradicating the e-KTP project corruption in 2014. At that time, the public welcomed the KPK's quick move, but behind it, PNRI was actually caught up in a legal process that killed the company's liquidity.
"On May 23, 2014, KPK investigators blocked Rp184.14 billion in the account of the PNRI consortium. However, PNRI is only a partner in implementation, not a suspect and not a defendant," he said.
The project funds were frozen for four years. During that period, PNRI still had to pay loan interest, pay employees, and meet contractual obligations to consortium partners.
"The money is frozen, while the obligations continue. Companies are like breathing with their hands tied because their blood is sucked," said Iskandar.
In 2018, the Supreme Court through the decision Number 430 K/Pid.Sus/2018 decided that the funds were confiscated for the state and executed to the state treasury. Legally, the criminal case is over, but according to IAW, from the perspective of asset management, it is the peak of a disaster for PNRI.
"The paradox is, the state saves the state's finances by damaging its own SOEs' finances. A legally legitimate action turns into a big blunder in the management of state wealth," he said.
Iskandar compared this situation to the handling of the PT Timah IUP corruption case in 2024-2025. In this case, the state actually encourages the productive management of assets through smelters which are projected to contribute revenue of up to IDR 4.6 trillion per year.
"This is a revolutionary step. But the question is, why is PNRI which only needs liquidity returns allowed to die, while PT Timah is given physical assets to manage," he said.
IAW also highlighted the operations of the Forest Area Enforcement Task Force (PKH) which were considered to be at a crucial point. The pattern is said to be similar to the early phase of PNRI, namely quick and decisive action without certainty of the design of continued management.
"If the PKH Task Force follows the PNRI path, the risk is not only losing economic value, but also failing to recover ecological damage. The losses are layered and borne by the people," said Iskandar.
According to IAW, this problem is not the fault of law enforcement institutions such as the KPK, Prosecutor's Office, or Task Force, but rather the result of a flawed system from the start.
"We encourage systemic solutions, ranging from accelerating the Asset Confiscation Bill, drafting special protocols for SOEs, implementing a single custodian, transparency, to performance audits by the BPK," he said.
Iskandar emphasized that the PNRI case was a monument to the failure of state asset governance, while the PT Timah case showed that the state was actually able to learn. He assessed that the discipline of forest areas and similar cases in the future would be a test of the maturity of the state in managing assets.
"Whether we will rebuild a new monument of failure, or start to arrange the pillars of statehood maturity, it is our common choice," he concluded.
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