Mustaqim Adamrah and Irawaty Wardany - The Jakarta Post

Jakarta, Thu, 11/05/2009

The government-sanctioned fact-finding team, dubbed Team 8, held various meetings Wednesday with parties involved in a saga over criminal cases against the suspended deputy leaders of the Corruption Eradication Commission (KPK).

The team also met with chief editors of national media outlets  in the evening.

On Wednesday the team is slated to meet National Police chief detective Comr. Gen. Susno Duadji and Anggodo Widjojo among the figures    in the scandal.

National Police chief Gen. Bambang Hendarso Danuri, detective deputy chief Insp. Gen. Dikdik Mulyana, legal division deputy chief Brig. Gen. Jovianes and several detectives have also been questioned.

The group has been tasked to investigate the origin of  the case against Chandra M. Hamzah and Bibit Samad Rianto and its progress so far.

“Apparently it began from the testimony of Antasari [Azhar],” team chairman Adnan Buyung Nasution said after the meeting.

“The police found that Antasari went to Singapore and met with Anggoro Widjojo, who has been put on a travel ban list.

“Antasari heard that his deputies had received money from Anggoro,” Buyung said.

Deposed KPK chief Antasari is being tried for allegedly plotting the murder of Nasruddin Zulkarnaen, a director at a state firm, while Anggoro is the director of PT Masaro Radiokom and is allegedly involved in a bribery case involving a communication system project at the Forestry Ministry.

Bambang also said the KPK deputies had abused their power by lifting the travel ban against graft suspect Joko Chandra by stating that he had been “investigated and prosecuted, while the fact is that never happened”.

The police arrested Chandra and Bibit on Thursday and released them in the early hours of Wednesday after the Constitutional Court heard voice recordings describing a plot to frame the deputies.

The police also detained Anggodo for questioning Tuesday evening.

“Bambang said the police would have to release Anggodo if no sufficient preliminary evidence was found to arrest him,” Buyung said.

Team member Anies Baswedan said he did not know what kind of evidence the police still lacked.
However, Anggodo was later released on Wednesday evening.

During a meeting with the chief editors, Team 8 member Todung Mulya Lubis said that Anggodo’s taped conversation showed his contempt for the law.

“Police decided this morning that there is not enough evidence so he will be released. This is clearly an obstruction of justice, it cannot be tolerated.

“We don’t think we are limited to verifying the process of investigation of Bibit and Chandra, after what we heard yesterday [Tuesday] at the Constitutional Court.”

The team’s end goal “should be to uproot the mafioso and corrupt practices in the court, and thoroughly reform the legal system,” he said.

Anies stressed the need to keep the momentum going to ensure legal reform.

Separately, activists urged the  President to take firm action against the police and the Attorney General’s Office by replacing senior officials allegedly involved in the plot against the two KPK deputies.

http://www.thejakartapost.com/news/2009/11/05/team-8-meets-police-chief-quiz-susno-anggodo.html

Todung Mulya Lubis, HRA’s International Advisory Board member in Jakarta, served as lawyer for TIME  Magazine in a decades-long law suit in Indonesia’s courts. Time Magazine was charged with defaming ex-dictator Soharto by alleging in a cover story titled “The Family Firm” that Suharto and his children amassed $73 billion, the bulk of it from oil and mining,forestry,property,banking and petrochemical, much of which was lost in the 1997-98 Asian financial crisis.

Supreme Court Judge Hatta Ali ruled recently that the article “did not violate the law” or breach “the press code of conduct,” and that Time owed no money to the Suharto family.

“We have been struggling to find justice for a decade now,” said Todung Mulya Lubis, adding that he hoped the decision would give journalists the courage to do their jobs. “It has been a long road.”
Soeharto, who died last year at the age of 87, seized power in a 1965 coup that left up to half a million people dead. He ruled the country with an iron fist, killing or imprisoning hundreds of thousands of political opponents before he was ousted in a wave street protest one decade ago. He evaded prosecution on charges of embezzling state funds, with lawyers successfully arguing up until his death that he was too ill to stand trial. Neither was he ever tried for human rights abuses.

The administration of current President Susilo Bambang Yudhoyono, who is widely expected to win another five-year term in elections this July, is credited with overseeing the trials and convictions of several high-profile government officials charged with graft.                                 

*) Human Rights Advocates  -  www.humanrightsadvocates.org 

The Supreme Court has cleared Time magazine, published by Time Inc., of all charges in a defamation case brought forward by the family of the late former president Soeharto.

Time’s lawyer, Todung Mulya Lubis, said in a statement on thursday that the Supreme Court ruling was a relief for Indonesia’s press.
“The decade-long struggle by Time to convince the country’s legal institutions has succeeded in proving that news for public interest should not be categorized as a crime, “he said.
“This is a historical verdict and should be a reference for all judges handling press cases.
“The verdict should become a jurisprudence which is legally binding. This is a victory for the press, not only for Time. We appreciate the Supreme Court for the just verdict,” Todung said.
The Supreme Court overturned its August 2007 ruling, which required the magazine to pay US$ 106 million in damages to Soeharto’s estate.
Supreme Court Justice Hatta Ali said the article in question “did not violate the law” or breach ethical standards.
He said Time owed nothing to the Soeharto family- a decision hailed by the magazine as a victory for press freedom.

The Soeharto family sued Time for defamation over its May 24, 1999 (Asian edition) cover story, which reported that they had amassed $ 15 billion during his 32 years in power. The former president demanded Rp 189 trillion (US$ 17.18 billion) in compensation.
The lawsuit was filed at the Central Jakarta District Court by lawyers Juan Felix Tampubolon, O.C. Kaligis and Indriyanto Senoadji.

The magazine disseminated false news and cast aspersions against our client’s good name, the Soeharto family lawyers claimed. Soeharto also demanded the magazine restore his good name by issuing a clarification and public apolgy.
Soeharto also demanded Rp. 280 million in immaterial losses to cover legal expenses.

The magazine, following four months of extensive investigation in 11 countries, claimed that the Soeharto’s fortune included a $ 9 billion fund that was transferred from Switzerland to Austriaonly days after the former strongman resigned on May 21, 1998. The alleged fortune also includes cash, stocks, corporate assets, jewellery and fine arts.
Soeharto has repeatedly denied that he personally had any bank accounts abroad and challenged the magazine to come up with evidence to back its claim. Soeharto died last year at the age of 87.

LSM was selected from a number of candidate firms in Jakarta and brings additional strength to an Asia legal membership that also includes leading independent law firms Lehman Lee & Xu (China), Chooi & Company (malaysia), ONC Lawyers (Hongkong), Kojima Law Offfices (Japan), and Rajinder Narain & Co and Chandan Associates (India).
The appointment enables LSM, a Legal 500 and chambers and Partners recommended firm, to remain fully independent, while broadening the scope of services available to its clients through access to a carefully selected worldwide association of over 250 independent law and accounting firms in 100 countries.

With multinational corporations comprising a growing share of LSM client base, the need to refer clients to trusted, independent law firms with strong commercial teams and international experience in other jurisdictions has become hugely important. Membership will allow LSM to continue to benefit from existing law firm relationships, while accessing an additional source of referrals from overseas.

LSM is a 30-lawyer, full service law firm established in 1986 whose practice encompasses nearly every major area of law, but is divided intro three major practice groups: Corporate and Commercial, Intellectual Property and Dispute Resolution.
Todung Mulya Lubis, LSM’s Senior Partner, says:”MSI Global Alliance membership acknowledges our standing in the South East Asian region and will benefit our clients as well as boost our profile in Indonesia.

“Our admission to MSI Global Alliance also nends a message to Indonesian companies that we are ready and capable of assisting them with global transactions.”
James Mendelssohn, MSI’s Chief Executive, says:”Lubis Santosa & Maulana ia an impressive firm that has been able to meet our stringent membership criteria of impeccable service standards and a broad, internationally oriented, commercial practice. The firm will play an important part in the growth of our membership in South East Asia.
“MSI continues to appoint strong independent firms, with six firms having joined already in 2009. The economic downturn provides a good opportunity for the medium sized firm with established international links as in house counsel and CFOs go in search of professional firms that offer better value through partner involvement, lower fees and international expertise.”

Mendelssohn continues:”while some firms are battening down the hatches, the more entrepreneurial firms are out there networking, connecting. referring, learning and doing their best to keep business flowing and confidence growing. This type of firm is certainly to be found within MSI, with managing partners recognising that to do nothing, however tempting, is a big risk.
“We are exploring opportunities to appoint further members in South East Asia, including Cambodia, Laos, Macau, South Korea Taiwan and Vietnam, and interested firms are invited to come forward.”

Clients doing business in Indonesia now have access to the full range of professional services through LSM and MSI’s accounting firm member in Jakarta, Sulaimin & Rekan.
About MSI Global Alliace
MSI is an international association of independent proffesional firms, with over 250 member firms in 100 countries. MSI was formed in 1990 in response to the growing need for cross border cooperation between proffesional servises firms. For more information on MSI and its member firms, please go to www.msiglobal.org

Friday, April 3,2009

After 12 years in mothballs, a subsidiary of state oil and gas firm PT Pertamina plans to revive the Karaha Bodas geothermal project in Garut district, West Java Province , at an estimated investment of as much as $60 million, atop company official said on Thursday.
The project was halted in 1997, the height of the Asian financial crisis, by President Habibie, following allegations of corruption and inflated estimates of potential reserves by PT Karaha Sodas Co., or KBC.KBC was a joint venture between the US-based energy companies Caithness Energy and Florida Power and Light Group Inc., and Japanese power developer Japan Tomen Power Holdings Corp., together with local partner PT Sumarah Dayasakti.

At the time, Pertamina said that Karaha Bodas^‘s proven re-serves were only 30 megawatts, but KBC claimed they amounted to some 400 MW. The dispute eventually went to arbitration, with the panel finding against Pertamina in 1999, and ordering the state firm to pay $261 million in damages to KBC for the money it had already spent and loss of future profits.“Pertamina will start the construction of the geothermal project nextyear and expects to bring online all of the 30 MW in proven reserves,” Abadi Poernomo, president director of Pertamina Geothermal Energy, or PGE, told the Jakarta Globe by telephone. “The price for geothermal electricity is higher now than it was previously, thus clearing the way for us to reusrrect the project.” He said that the investment would be financed by a Pertamina loan to PGE. “it would be a corporate loan to us. Pertamina can come up with some $50 million to $60 million,” he added. Abadi also expressed the hope that the seemingly intractable legal dispute between Pertamina and KBC would be resolved soon. Although Pertamina finally paid the arbitration panel’s award to KBC, it still refuses to accept liability, and has since tried to recover the money in the United States, Singapore, Hongkong and Canadian courts, arguing that KBC was guilty of corruption and of inflating reserves. Abadi declined to elaborate further on the legal issues.
 According to lawyer Todung Mulya Lubis, the chairman of Transparancy International Indonesia, Pertamina had little chance of reversing the arbitration award as overseas courts were very reluctant to do so for fear of damaging the arbitration system. “I m not optimistic that Pertamina will be able to over turn the arbitration award against KBC, unless Pertamina has very strong reasons that would persuade the court to do so. Pertamina however, doesn’t have such reasons. KBC won because it argued its case very well before the arbitration panel.” Regarding the pricing of the Karaha Bodas power, Abadi said that Pertamina was currently in talks with state power utility PT Perusahaan Listrik Negara, or PLN.The revived Karaha Bodas project forms part of phase teo of PLN’s “fast-tract” generating capacity expansion program, and is expected to be finished by 2013, Abadi said.

Todung Mulya Lubis

A legal reformer
Lubis himself is an extremely well respected, high profile legal commentator and activist in Indonesia, who is known as a legal reformer on many fronts. A side from the Suharto case, he has not been afraid to speak up on controversial cases against the government if necessary thanks to a firm belief in the right of his cause. An example is his public criticism of the Susilo Bambang Yudhoyono administration for not settling long outstanding arbitration awards against Indonesian entities, in cases such as the one involving Karaha Bodas, in which the construction of a power plant was cancelled. He has been strongly vocal on the issue of enforcement of arbitration awards in Indonesia, as well as on minimising court interference in the enforcement of these awars. Lubis has championed corporate social responsibility, recently in connection with the popullation in East Java, Indonesia from an oil company, PT. Lapindo Brantas. He has called for responsible enviromental management by corporations to protect the Indonesian environment. He has also directed criticism at his legal peers and the judiciary for corruption and unethical behaviour, (see the excerpt from the Jakarta Post), and has encouraged reform in the legal Industry to ensure that foreign investment is is strengthened. Not only has Lubis been vocal on such issues, but he has actively persued progress through his involvement in a long list of proactive organisations throughout his entire career. He has held a wide array of positions from member to founding director on bodies dedicated to progress on human rights, corruption, election reform democracy education and victims of violence, and has also been active in a number of legal industry specific groups.

Founding the firm
Lubis Santosa & Maulana had a social conscience from the beginning, when it was founded by Lubis and like-minded lawyers Lelyana Santosa and Insan Budi Maulana ini 1991. Lubis began the practice of law in 1971, and was a legal aid lawyer in Indonesia until 1987, rising to the position of national chairman of the Indonesian Legal Aid Foundation. At this time he was also a lecturer at the University of Indonesia;however his criticism of tge goverment at that time led him to being silenced by being discharged in 1985. He left Indonesia in 1987 to attend Harvard Law School where he gained his Masters, having already attained his US qualifications at The University of California, Berkly Berkeley in 1978. After returning to Indonesia, Lubis decided to form the law firm in 1991. Santosa and Maulana had been working with him for some time, and were loyal partners with similar ideals, so they decided to establish the firm together. The three came from different legal practice backgrounds.  Lubis had more experience on the corporate side, and began to build the firm’s now sizable corporate practice. Santosa’s practice was in litigation,while Maulana’s focus was IP. However, Lubis has recently become known more as a litigation lawyer due high profile cases he has represented. These practice areas are still the three pillars of the firm’s business today, thought it has grown over the years into a much larger, full service law firm.

The firm today
Lubis Santosa & Maulana now has five partners, a total of 27 lawyers, and over 50 support staff to work on deals and cases. Partners who have since joined the firm are Eman Achmad Sulaeman, head of its corporate partner. This reflects the significant expansion of its corporate department, which now boasts 15 lawyers. The firm’s three main practice areas re business, IP and dispute resolution. Betweeen them,they encompass almost the entire gamut of legal services. The business division handles all corporate, banking investment and finance, and commercial services, for both international and domestic clients. IP acts largely for international clients in the enforcement of their IP rights in Indonesia, a sensitive issue in the jurisdiction for some time. In dispute resolution, the firm is well known domestically and internationally as having one of the best litigation teams in Indonesia, and it is also highly experienced in international arbitration work. The international respect the firm has garnered is evident in its impressive client list. On the media side, although its most celebrated client has been TIME Magazine, it has also been retained by The Asian Wall Street Journal and The Washington Post. as well as high profile domestic media outlets Tempo and The Jakarta Post. Banking and finance clients include many well known names, including HSBC, Goldman Sachs, Morgan Stanley, CItibank, Asian Decvelopment bank, SG, Mitsui and Merrill Lynch. Lately the firm has been doing a lot of work for mining companies. “Indonesia is very rich in natural resources, so that is why they are all here,”Lubis explainss.”We are the lawyers for them in most of their litigation. We also do some corporate work some legal advice and consultation so not just pure litigation.” Clients include BP Indonesia, Total Oil,Newmont, Exxon Mobil, Rio Tinto and BHP Billiton.
However, the firm does not only pusue lucrative work from international corporations with operations in Indonesia. True to the values of its founding partners, it still undertakes a lot of pro bono work, continuing its passion for social justice.

The TIME case
Lubis, Santosa & Maulana’s defence of TIME Magazine against the defamation action by Suharto is one of the most widely celebreted and symbolic cases it has undertaken. “This is because Suharto for the first time in his life considered defeat when he was still one of the most powerful people in Indonesia despite not being President at the time,”Lubis says. The case stemmed from a report in the May 24, 1999, edition of TIME Magazine’s Asian publication, which reported that Suharto and his family had amassed US$15bn in foreign assets during his 32 years in power, and alleged the existence of overseas bank accounts. Suharto denied the allegations and sued TIME. The US magazine approached Lubis Santosa & Maulana to take up its defence. “I think they came to us because they know us, because our firm is known as a firm that plays by the rules this is not a hanky panky firm we have integrity,”Lubis says.
After testimony from mass media and language experts, the court ruled that the report was not defamatory and dismissed the case against TIME. “I managed to convince the judges that TIME’s report covered both sides [of the story], and was very professional in their checking and re checking of facts. I also convinced them to acknowledge that public figures like Suharto are some what public property,”Lubis comments. In similar case, the government sued Indonesiaan business man. “Its is the most popular news magazine and since we believe in freedom of the press, we are pleased to get the honour of defending them in court,”Lubis says.

The good fight
During the TIME case, and at other times, Lubis and his team have had to face fears for their own preservation, yet have continued despite the risks. “Yes, I’ve had my office broken into, and all the files taken from my office and those of my associates. I had intimidation from many people at that time,”Lubis says.During the case, there was also a suspicious office fire, and Lubis was forced to take on body guards for his own safety. “But that is part of it in this country I don’t regreat that,”he says. And Lubis and his partners have not mellowed over the years. He says the plan is to continue to drive legal reform in Indonesia for the benefit of its economy.
“I think we will continue in the way our firm has been fighting for the rule of law in the country , and feel the firm has a corporate responsibility to do this,” he says. “I think that is the number one law, I will not compromise. We all have the same culture, we are very strict in our ethical standards, I don’t compromise on that.”

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