Country Risk

Likely series of prosecutions of senior Indonesian politicians will reduce preferential treatment of politically connected local firms

17 November 2017


On 15 November, Setya Novanto, the parliamentary speaker and chairperson of the Golkar party, a junior partner in Indonesia's ruling coalition, fled his private residence shortly before anti-corruption officials and the police arrived to arrest him.

Indonesia’s Corruption Eradication Commission (Komisi Pemberantasan Korupsi: KPK), which had issued at least 11 summonses for Novanto, seized documents and CCTV recordings. Novanto is implicated in one of Indonesia’s largest corruption cases involving state losses worth USD170 million allocated in a nationwide government electronic identity card procurement project worth IDR5.9 trillion (USD440.0 million) in 2010–11. Novanto denies all allegations against him. The 15 November arrest attempt was reportedly prompted by new evidence, including an audio recording, from the US Federal Bureau of Investigation (FBI) that implicates Novanto.

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