How Corruption Evolves: Fear, Power, and Administrative Manipulation

By Kusnandar & Co.,  Attorneys At Law – Jakarta, Indonesia

 

The case revealed by the Komisi Pemberantasan Korupsi regarding alleged extortion involving the Regent of Tulungagung highlights how corrupt practices continue to evolve in form. It is no longer limited to conventional bribery or illicit payments, but has shifted into more structured and psychologically coercive methods. 

One of the most striking elements is the modus operandi used. Several local officials were reportedly asked to sign undated resignation letters. At first glance, these documents appear to be routine administrative paperwork. In practice, however, they function as tools of pressure. The letters can be activated at any time to remove officials deemed disobedient, creating a constant sense of insecurity within the bureaucracy.

This situation goes beyond a simple violation of law. When official documents are repurposed as instruments of intimidation, the fundamental role of bureaucracy is undermined. Instead of being guided by rules and professional standards, the system becomes driven by fear and personal control. Civil servants are no longer able to act independently, as their positions depend heavily on the discretion of those in power.

The broader consequence of such a practice is institutional damage. Officials working under persistent pressure may feel compelled to comply with unethical demands simply to protect their positions. In many cases, this kind of coercion can trigger a chain reaction of further corruption. Funds extracted through pressure may later be compensated through budget manipulation or other forms of abuse of authority.

Another important point is that this pattern has been described as a new finding. This suggests that similar methods may not have been widely detected before and could potentially exist in other regions. If left unaddressed, this approach could spread and become a replicated model of corruption. In this sense, corruption is not only persisting but also adapting to exploit gaps within the system.

The continuation of such practices over a period of time also indicates weaknesses in internal oversight mechanisms. While it is true that the officials involved may have been under significant pressure, the lack of safe and effective reporting channels worsens the situation. Without adequate protection, the willingness to report misconduct remains extremely limited.

This case also reflects the ongoing challenges in bureaucratic reform, particularly in relation to power dynamics. As long as official positions are used as tools of control rather than public responsibility, the risk of abuse will remain. Regulatory changes alone are insufficient if they are not accompanied by deeper cultural and institutional improvements.

The enforcement actions taken by the Komisi Pemberantasan Korupsi are certainly important, but they should not stand alone. Preventive measures need to be strengthened, including improving civil service systems, increasing transparency, and ensuring strong protection for whistleblowers. Without these steps, similar cases are likely to reappear in different forms.

Ultimately, this case serves as a reminder that corruption is highly adaptive. When one loophole is closed, others tend to emerge. Therefore, anti-corruption efforts must also evolve continuously—not only through law enforcement, but also by building systems that minimize opportunities for abuse from the outset.

Indonesia can’t afford to repeat.

By : K&Co - April 28, 2026

Balancing Power and Prudence in Indonesia’s Financial Landscape

By Kusnandar & Co.,  Attorneys At Law – Jakarta, Indonesia

 

The recent policy move by Finance Minister Purbaya Yudhi Sadewa to revise regulations on state receivables, along with his warning to younger generations about stock investing, reflects a clear underlying theme: the government aims to strengthen asset management while encouraging society, especially Gen Z, to become more financially responsible.

The revision under PMK No. 23 of 2026 represents a relatively progressive step. The state is now allowed to directly take control of seized assets and utilize them without going through lengthy auction procedures. These assets even include modern instruments such as stocks and cryptocurrencies, signaling that the government is adapting to the realities of a digital economy.

From an efficiency standpoint, this policy deserves recognition. Previously, the settlement of state receivables was often delayed by bureaucratic processes, causing asset values to deteriorate over time. With this new mechanism, the government gains greater flexibility to immediately optimize assets for public benefit. In a rapidly changing economic environment, such flexibility could significantly improve state financial management.

However, this expanded authority must be carefully monitored. Granting the state the power to directly seize and utilize assets carries potential risks of misuse if not accompanied by strong transparency and accountability measures. The “as is” principle, which requires recipients to accept assets in their current condition, may also create new complications, particularly if the assets have underlying legal or technical issues. In this sense, regulatory reform must go hand in hand with stronger oversight.

On another front, Purbaya’s message to Gen Z about stock investing is highly relevant in today’s context. A significant portion of capital market investors in Indonesia now comes from younger generations, indicating growing enthusiasm for investing. However, this surge in participation is not always matched by adequate financial literacy.

The reminder that investing is not a shortcut to instant wealth is particularly important. Many young investors are drawn into the allure of quick profits without fully understanding the inherent risks of the market. The principle of “high risk, high return” is not merely a slogan—it is a reality that is often underestimated. Encouraging young people to learn before they invest is therefore a rational and necessary approach.

Initiatives such as mutual fund investment programs that promote gradual investment strategies also offer practical solutions. Methods like dollar-cost averaging can help beginner investors manage risk and avoid the pressure of market timing. More importantly, they foster a long-term investment mindset rather than short-term speculation.

Looking at the bigger picture, these two issues are closely interconnected. On one hand, the government is working to strengthen public financial management. On the other, individuals, particularly young people—are being urged to take greater responsibility for their personal finances. Together, they reflect a broader economic direction aimed at building a more stable and resilient system at both macro and micro levels.

That said, significant challenges remain. Financial literacy in Indonesia is still relatively low, even as access to investment platforms becomes increasingly easy through technology. Without proper education, this accessibility could backfire, leading young investors to make impulsive and potentially harmful financial decisions.

Therefore, government efforts should not stop at issuing regulations and public warnings. Financial education must be expanded systematically, from schools to digital platforms. Only then can these policies translate into meaningful, long-term impact.

Ultimately, the success of these initiatives will depend on two key factors: integrity in implementation and the readiness of society to respond wisely. Without both, regulatory changes risk becoming mere formalities, and warnings to Gen Z may simply go unheeded.

By : K&Co - April 28, 2026

Electric Vehicles Without Tax Incentives: Are They Still Relevant?

 By Kusnandar & Co.,  Attorneys At Law – Jakarta, Indonesia

 

The government’s decision to end full tax exemptions for electric vehicles starting in 2026 marks a new phase in Indonesia’s EV journey. While incentives once played a central role in attracting consumers, the public is now faced with a more fundamental question: can electric vehicles remain relevant without such support?

In recent years, EVs have been positioned as the future of transportation. They offer environmental benefits and lower operating costs, making them an appealing alternative to conventional vehicles. Tax incentives, however, have been a key driver in accelerating their adoption. With these incentives being reduced, that appeal is now being tested.

From a consumer perspective, the impact is immediate. The relatively higher upfront price of electric vehicles compared to gasoline cars becomes more noticeable. Additional costs—such as registration fees and annual taxes—further complicate the decision-making process. As a result, switching to EVs is no longer as straightforward as it once seemed.

That said, evaluating EVs solely based on initial cost provides an incomplete picture. Their main advantage lies in long-term efficiency. Electricity is generally more affordable than fossil fuels, and EVs require less maintenance due to fewer moving parts. The absence of routine oil changes and reduced wear on components contribute to lower ownership costs over time.

In the long run, these savings can offset the higher purchase price. In this sense, electric vehicles still hold strong economic value, particularly for consumers who plan to use their cars over an extended period.

However, financial considerations are only part of the equation. Infrastructure readiness and user convenience are equally important. At present, the availability of public charging stations in Indonesia remains uneven. For individuals with high mobility needs or those living in areas with limited electricity access, this presents a significant challenge.

In contrast, gasoline-powered vehicles continue to offer unmatched practicality. Refueling infrastructure is widespread, and the process itself is quick and familiar. For many consumers, this reliability remains a decisive factor.

Nevertheless, EVs retain certain non-financial advantages. In some cities, they are exempt from traffic restrictions such as odd-even license plate policies. Additionally, they offer a quieter and smoother driving experience, which enhances overall comfort.

The reduction of tax incentives may signal the government’s intention to encourage a more self-sustaining EV market. However, questions arise regarding the timing of this policy. With infrastructure still developing and vehicle prices relatively high, scaling back incentives could risk slowing adoption.

Therefore, a balanced approach is needed. Strengthening market independence should go hand in hand with continued policy support, particularly in infrastructure development and regulatory adaptation.

Ultimately, the relevance of electric vehicles is not determined by tax incentives alone. It depends on the readiness of the broader ecosystem—ranging from infrastructure and pricing to public acceptance.

Without comprehensive support, the transition to electric mobility may progress more slowly than anticipated. However, with the right policies in place, EVs still have the potential to play a significant role in Indonesia’s transportation future.

By : K&Co - April 27, 2026

When Innovation Finds a Home Elsewhere: The Bobibos Story

By Kusnandar & Co.,  Attorneys At Law – Jakarta, Indonesia

 

The news that Bobibos has reached around 70 percent readiness for mass production in Timor Leste is both exciting and a little bittersweet. It’s exciting because it shows real progress in renewable energy innovation. But it’s also hard to ignore the irony: this is an innovation tied closely to Indonesia’s resources and context, yet it’s being scaled up in another country.

For context, Bobibos is an alternative fuel made from rice straw—an agricultural byproduct that is abundant in countries like Indonesia. Instead of being burned or wasted, this material can be processed into a cleaner, more affordable energy source. On paper, it sounds like a perfect fit. Indonesia has vast rice fields, tons of unused straw, and an increasing need for sustainable energy solutions. It checks all the boxes.

So why isn’t it being developed at scale in Indonesia?

One of the main reasons lies in regulation. Despite its potential, rice straw hasn’t been formally recognized as a bioenergy resource within Indonesia’s regulatory framework. That creates a kind of limbo situation: the technology exists, the raw materials are available, but there’s no clear legal pathway to fully develop and commercialize it. It’s like having a product ready to sell but no permit to open the store.

Meanwhile, Timor Leste has taken a much more proactive approach. Instead of waiting for perfect conditions, they’ve embraced the opportunity. The government has reportedly provided land and support for production facilities, signaling a willingness to experiment and invest in new energy solutions. For a smaller nation, this is a bold move—and it’s already paying off.

This contrast highlights a broader difference in mindset. Indonesia tends to be more cautious, especially in sectors like energy where safety, reliability, and economic stability are critical. That caution is understandable. Poorly regulated energy solutions can lead to serious consequences. But there’s also a downside: moving too slowly can mean missing out on valuable opportunities.

Timor Leste, on the other hand, appears more willing to take calculated risks. They see Bobibos not just as an experiment, but as a chance to reduce dependence on imported fuels and strengthen their domestic energy sector. In a rapidly changing global energy landscape, that kind of decisiveness can make a big difference.

What makes this situation even more interesting is that it’s not an isolated case. There have been multiple instances where innovations connected to Indonesia gain traction abroad first. This suggests that the challenge isn’t just about technology—it’s about the ecosystem surrounding it. Innovation needs more than good ideas; it needs supportive policies, funding, and the courage to act.

That said, Indonesia’s cautious approach isn’t entirely misplaced. Energy is a high-stakes sector. Any new technology must go through rigorous testing, certification, and evaluation before being widely adopted. The real challenge is finding the right balance between caution and agility.

In that sense, Bobibos being developed in Timor Leste could actually work as a strategic stepping stone. If the project succeeds there, it can serve as proof of concept. Success abroad often builds credibility at home. It may even encourage Indonesian policymakers to revisit existing regulations and consider integrating this innovation into the national energy mix.

Ultimately, this story is about more than just one type of fuel. It’s about how countries respond to innovation. Indonesia has all the necessary ingredients—natural resources, talent, and market demand. What’s needed now is a more adaptive and responsive policy environment.

Otherwise, the same pattern will continue: great ideas will be born locally, but they’ll grow and thrive somewhere else. And that’s a missed opportunity Indonesia can’t afford to repeat.

By : K&Co - April 27, 2026

When Criticism Meets the Law: A Test of Democracy in Indonesia

 By Kusnandar & Co.,  Attorneys At Law – Jakarta, Indonesia

 

The recent reports of academics being reported to the police for criticizing the government have sparked renewed debate about freedom of expression in Indonesia. In response, Yusril Ihza Mahendra stated that academics are free to express criticism. At first glance, this sounds reassuring. However, the reality is more complicated than it seems.

In principle, criticism from academics is not only normal but necessary. Academics rely on data, research, and critical thinking to evaluate public policies. Their role is to question, analyze, and, when needed, challenge the government’s decisions. Without this kind of input, policies risk becoming one-sided and less effective. In this sense, criticism is not an attack—it is a contribution.

The problem arises when such criticism leads to police reports. While Yusril emphasized that criticism is allowed, he also acknowledged that anyone has the right to file a report. Law enforcement authorities, in turn, are obligated to follow up on these reports, at least at an initial stage. This creates a gray area: criticism is legally protected, yet it can still trigger legal processes.

This situation can discourage people from speaking out. Even if someone is ultimately proven innocent, being involved in a legal process can be stressful, time-consuming, and intimidating. As a result, many may choose to stay silent rather than take the risk. This phenomenon is often referred to as a “chilling effect,” where fear limits open expression.

In a democratic society, criticism should be seen as a healthy and essential element. Governments benefit from feedback, especially when it is constructive and evidence-based. Without criticism, there is a risk that those in power may become less responsive or even dismissive of public concerns.

That said, freedom of expression does not mean absolute freedom without limits. Criticism should be grounded in facts, delivered responsibly, and should not incite hatred or violence. Clear boundaries are necessary, but they must also be applied fairly and consistently, without being used to silence legitimate voices.

In my view, ethical mechanisms should come before legal ones. If an academic is accused of wrongdoing, the issue should first be examined through institutional or professional channels, such as universities or academic bodies. Legal action, especially criminal prosecution, should be the last resort—not the default response.

Yusril’s statement reflects an attempt to balance two important principles: protecting freedom of expression while respecting the rule of law. However, the real challenge lies in how these principles are implemented. If reports against critics are too easily processed without careful consideration, the promise of freedom may feel hollow.

Ultimately, this issue highlights an important question for Indonesia’s democracy: Is criticism truly accepted as part of a healthy political system, or is it still viewed as a threat? The answer will shape not only the future of academic freedom but also the broader landscape of civil liberties in the country.

A strong democracy is not one that avoids criticism, but one that can handle it with openness and maturity.

By : K&Co - April 23, 2026

Rupiah Weakens to Rp17,300: What Does It Mean for Us?

 By Kusnandar & Co.,  Attorneys At Law – Jakarta, Indonesia

 

The rupiah weakening to Rp17,300 per US dollar is not just a number in economic news. It is a sign that the economy is under pressure. In the report, Airlangga Hartarto stated that the government is continuing to monitor the situation and emphasized that this weakening is also happening in many other countries. While this is true, it still needs to be understood more carefully.

Globally, the economic situation is indeed unstable. Conflicts in several regions, rising global oil prices, and a stronger US dollar have put pressure on many currencies, including the rupiah. When oil prices increase, Indonesia has to spend more on energy imports. This puts additional pressure on the rupiah.

However, it is not enough to simply say that all countries are experiencing the same thing. In reality, some countries’ currencies have not weakened as much as Indonesia’s. This means that, besides global factors, there are also domestic issues that need attention.

One of the main problems is Indonesia’s heavy reliance on energy imports, especially oil. When global oil prices rise, the impact is immediately felt in the economy. Government spending increases, which in turn adds pressure on the currency. This is not a new issue, but it has yet to be properly resolved.

The weakening rupiah also directly affects everyday people. Imported goods become more expensive, which can lead to higher prices overall. When prices rise, people’s purchasing power declines. Over time, this can slow down economic growth and make daily life more difficult.

On the other hand, the government maintains that Indonesia’s economic fundamentals remain strong. Inflation is relatively under control, and economic growth continues. This is important to maintain public and investor confidence. However, statements alone are not enough without clear and concrete actions.

In our view, a response that focuses only on “monitoring” the situation feels insufficient. People need clarity about what steps will be taken. For example, how the government plans to reduce dependence on energy imports or how it will keep prices stable.

Transparency is also important. The government should communicate openly about the real situation, including potential risks ahead. This would help the public and businesses prepare better and avoid the impression that the issue is being underestimated.

The weakening of the rupiah should serve as a reminder that Indonesia needs to strengthen its economic independence. The country cannot continue to rely heavily on global conditions. Concrete efforts are needed to strengthen domestic production, especially in the energy sector.

In conclusion, what Airlangga Hartarto said may sound reassuring, but it should not make us complacent. This is a real issue with real impacts on people’s lives. If not handled seriously, the weakening rupiah could become a bigger problem in the future, rather than just a temporary fluctuation.

By : K&C - April 23, 2026

Rising Oil Prices and What It Means for Us

 By Kusnandar & Co.,  Attorneys At Law – Jakarta, Indonesia

 

The recent 3 percent increase in global oil prices, driven by tensions between Iran and the Amerika Serikat, highlights how unstable the global situation currently is. While a 3 percent rise may seem small at first glance, its impact can be significant—especially for countries that still rely on imported oil, such as Indonesia.

This increase is not only caused by actual disruptions in oil supply, but also by market concerns. Whenever tensions rise in the Middle East, global markets tend to react quickly. There is a strong fear that key oil distribution routes could be disrupted, particularly the Selat Hormuz, one of the most important oil shipping lanes in the world. If this route were to be blocked or disturbed, global oil supply could drop sharply, pushing prices even higher.

This situation shows that oil prices are heavily influenced by political conditions, not just economic factors. As long as the world remains dependent on oil, conflicts in certain regions will continue to have wide-reaching effects. Even relatively small tensions can trigger immediate price increases.

For Indonesia, this is a situation that requires serious attention. As a country that still imports a portion of its oil needs, rising global prices will be felt directly. The government may face increased pressure to keep fuel prices stable. Otherwise, higher fuel prices could lead to broader increases in the cost of goods and services.

The impact does not stop there. Rising oil prices usually lead to higher transportation costs. When transportation becomes more expensive, the prices of basic goods often follow. In the end, it is the public—especially lower- and middle-income groups—who bear the greatest burden.

This pattern is not new. Almost every time there is conflict in the Middle East, oil prices rise. This reflects a deeper issue: the global energy system still depends heavily on regions that are politically unstable. This dependency makes the global economy vulnerable.

Therefore, this situation should serve as an important reminder for Indonesia. The country cannot continue to rely heavily on imported oil. Concrete steps are needed to reduce this dependence, such as developing alternative energy sources like solar, wind, and geothermal power.

In addition, improving energy efficiency is just as important. People can start with simple actions, such as reducing the use of private vehicles or using energy more wisely. Lower consumption can help reduce the impact of global price increases.

From the government’s side, energy policies need to be more forward-looking and decisive. It is not enough to respond only when prices rise; there must be long-term strategies to minimize future risks.

In conclusion, the rise in oil prices is not just a routine economic issue. It is a signal of global uncertainty that directly affects countries like Indonesia. Without proper anticipation and action, the impact could become more severe. That is why both the government and society need to adapt and work toward reducing dependence on unpredictable global conditions.

By : K&Co - April 22, 2026