Confronting the 'Phantom Company' Nightlife Venues Linked to Drug Cases

Cases involving nightlife venues implicated in drug distribution allegations are reviving concerns about practices of changing company identities to evade penalties. After operating licences were revoked, operators are said to be able to resume business under new names, while the people behind the ventures remain the same. The phenomenon surfaced after the Jakarta Provincial Government revoked the operating licences of several nightlife venues, ranging from White Rabbit PIK to Karaoke B-Fashion and The Seven in West Jakarta. ‘I assess that concerns about practices of changing identities or changing the PT name after a nightlife venue becomes involved in a drug case are very likely to occur if administrative oversight and ownership verification are not conducted comprehensively,’ Rio told Kompas.com. The tactic of changing the business entity is not new in the nightlife industry. In several cases, this step has been used to avoid administrative sanctions while also simplifying the process of applying for a new licence. Therefore, Rio argues that government oversight must not stop at revoking the operating licence. The issue could become an iceberg if not accompanied by a thorough evaluation of the governance of nightlife venues in Jakarta. According to Rio, the Jakarta provincial government through the Department of Tourism and Creative Economy (Disparekraf) should have a blacklist against operators and shareholders of nightlife venues who have been involved in serious violations, particularly drug cases. Furthermore, Rio called for an integrated database that would allow the government to trace ownership links, partnerships in operation, and the track records of nightlife venue operators. ‘The Jakarta Provincial Government must not be outdone by administrative tricks or the interests of certain business players,’ Rio said. ‘Do not let them hoodwink by simply changing the PT name when the individuals are still the same. Sometimes it’s just a ’change of outfit’, but the perpetrators remain the same at those venues,’ Trubus said.