The Case of Chromebook Expands the Interpretation of State Losses in Corruption Law

Illustration of corruption (ANTARA)

JAKARTA - Indonesian Audit Watch (IAW) assesses that proof of corruption cases is no longer solely about cash flow to certain accounts. This is reflected in the Chromebook procurement case currently being rolled out in court, with the value of state losses said to have reached Rp. 809.59 billion.

The Founding Secretary of IAW, Iskandar Sitorus, said the Public Prosecutor (JPU) had brought the audit language, which had been considered technical and administrative, into the framework of criminal corruption. Findings of the Financial Audit Agency (BPK) such as locking specifications, unreasonable prices, idle assets, and non-optimal benefits are now being tested as elements of criminal acts.

"This is no longer a matter of a wrong procedure, but a suspected policy mechanism that creates economic benefits for certain parties and harms state finances," said Iskandar, Sunday, January 18.

According to IAW, the figure of Rp. 809.59 billion is not positioned as cash received directly, but as economic value that enriches certain parties or other corporations. In the perspective of modern corruption law, especially Articles 2 and 3 of the Corruption Eradication Law, economic benefits do not always take the form of cash.

"The profit can be in the form of an increase in corporate valuation, an increase in share value, profits from markets created by policies, or other financial benefits that arise from the authority of the post. Therefore, the figure of Rp. 809 billion must be read as an accumulation of economic value," he said.

IAW assessed that the BPK's findings regarding the specifications for the procurement of Chromebooks that can only be met by a certain ecosystem, including the obligation to use Chrome Device Management (CDM), are concrete examples of this practice. The scheme is considered to create vendor lock-in and recurring costs that do not stop at the purchase of the device.

"Long-term dependence is created through licensing and system management. This is not just a purchase of goods, but the formation of an exclusive market," said Iskandar.

IAW also highlighted the finding of hundreds of thousands of Chromebook units that are not optimally utilized. From the public service perspective, this condition shows a failure of benefits. However, from the perspective of the market economy, the value for the provider has been realized because the device is sold and the license is still running.

Iskandar appreciated the steps of the JPU who did not make capital increase or valuation a standalone criminal act, but traced the source and cause of the emergence of economic profits.

"How is it possible for the country to suffer huge losses due to ineffective procurement, while on the other hand there are parties who enjoy an increase in economic value of hundreds of billions of rupiah," he said.

According to IAW, corporate transactions are only an economic indicator, not the only evidence of crime. In corporate law, capital participation or valuation increase is valid as long as it is carried out in a reasonable manner, based on healthy business performance, and not sourced from public policy distortions.

"If the economic value appears at the same time as a problematic state policy, comes from a market that is exclusively created, and is inversely proportional to public benefits, then the transaction changes its meaning. It becomes an economic footprint of a policy that harms the country," said Iskandar.

IAW assessed that if the charges in the Chromebook case can be proven in court, then an important precedent will be born in law enforcement. Corruption is no longer understood solely as the receipt of cash, but also as the economic value that arises from public policies that are diverted.