Indonesian Political, Business & Finance News

Prosecutors Believe Nadiem's Economic Interests with Google Were Never Severed

| Source: ANTARA_ID Translated from Indonesian | Legal
Prosecutors Believe Nadiem's Economic Interests with Google Were Never Severed
Image: ANTARA_ID

The public prosecutor from the Attorney General’s Office, Roy Riady, is convinced that the economic interests of the Minister of Education, Culture, Research, and Technology for the 2019–2024 period, Nadiem Anwar Makarim, in a company affiliated with Google were never severed. This is because Nadiem retained share ownership in PT Aplikasi Karya Anak Bangsa (PT AKAB), currently named PT Gojek Indonesia, and PT GoTo Gojek Tokopedia Tbk, in order to enjoy their economic benefits.

This interest was merely disguised behind an irrevocable power of attorney, which is not an instrument for resolving a conflict of interest but rather an instrument for concealing control while continuing to reap economic benefits, the prosecutor revealed during the replication hearing in response to the defence plea at the Corruption Court in Central Jakarta District Court on Tuesday.

The response was the prosecutor’s answer to the argument by Nadiem’s legal counsel in their defence statement, which stated their client had no conflict of interest with Google because he only held minority shares and had provided an irrevocable absolute power of attorney dated 20 October 2019 as a form of conflict of interest mitigation.

Against this argument, the prosecutor posed a fundamental question that demolishes the entire construction of the defence: if Nadiem truly intended to completely sever the conflict of interest, why did Nadiem only delegate the voting rights for his shares instead of selling or divesting the shares? In fact, the prosecutor continued, Nadiem still received economic benefits and profits from PT AKAB.

The answer to this question was provided by the defendant himself in court, namely that the defendant deliberately did not sell his shares because he still wanted to enjoy and develop the Gojek business. Thus, even after serving as Minister of Education and Culture, the prosecutor believes Nadiem remained the hidden controller of PT AKAB and PT Gojek Indonesia through the mechanism of granting power of attorney to Andre Sulistyo and Kevin Brian Aluwi to represent Nadiem’s voting rights.

However, it was stated that the two holders of the power of attorney must remain under Nadiem’s control because they are obliged to report and obtain approval from Nadiem for every corporate action they undertake so that Nadiem continues to receive benefits and economic gains from PT AKAB and PT Gojek Indonesia. In corporate law, such a situation is known as the directing mind, meaning a person who formally appears to have relinquished their position but substantively remains the actual controller, the prosecutor explained.

Nadiem is implicated as one of the defendants in an alleged corruption case concerning an education digitalisation programme involving the procurement of Chromebook laptops and Chrome Device Management (CDM) within the Ministry of Education and Culture for the years 2019-2022. Previously, he was sentenced to 18 years in prison, a fine of Rp1 billion with a subsidiary of 190 days imprisonment, and a restitution payment of Rp5.67 trillion with a subsidiary of 9 years imprisonment.

In this case, Nadiem is accused of committing corruption that caused state financial losses amounting to Rp2.18 trillion. The corruption was allegedly carried out, among other ways, by implementing the procurement of information and communication technology-based learning facilities in the form of Chromebook laptops and CDM for the 2020, 2021, and 2022 fiscal years, not in accordance with procurement planning and procurement principles.

The actions of the founder of a technology company were alleged to have been carried out jointly with three other defendants in separate trials, namely Ibrahim Arief alias Ibam, Mulyatsyah, and Sri Wahyuningsih, as well as Jurist Tan, who remains a fugitive. In detail, the state losses caused include Rp1.56 trillion related to the education digitalisation programme at the Ministry of Education and Culture, and US$44.05 million, equivalent to Rp621.39 billion, resulting from the procurement of CDM that was unnecessary and not beneficial to the education digitalisation programme.

Through these actions, Nadiem is suspected of having received money amounting to Rp809.59 billion originating from PT Aplikasi Karya Anak Bangsa (PT AKAB) via PT Gojek Indonesia. It was stated that most of PT AKAB’s source of funds came from a Google investment worth US$786.99 million. This can be seen from Nadiem’s wealth recorded in the State Officials’ Wealth Report (LHKPN) in 2022, which showed the acquisition of assets in the form of securities worth Rp5.59 trillion.

For his actions, the former Minister of Education and Culture is threatened with criminal penalties stipulated in Article 2 paragraph (1) or Article 3 in conjunction with Article 18 of Law Number 31 of 1999 concerning the Eradication of Corruption as amended and supplemented by Law Number 20 of 2001 in conjunction with Article 55 paragraph (1) point 1 of the Criminal Code.

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