Garuda Indonesia-Rolls Royce Corruption, Transnational Crime, and Eradication Measures

  • Satria Unggul Wicaksana Prakasa Universitas Muhammadiyah Surabaya, Indonesia

Abstract

The appointment of Emirsyah Satar, former President Director of PT Garuda Indonesia, and former Director of PT Mugi Rekso Abadi, Soetikno Soearjo who was the beneficial owner of Connaught International Pte. Ltd. as an intermediary for bribery against the Emirsyah in the alleged bribery case of aircraft and aircraft engine procurement from Airbus SAS and Rolls Royce PLC by PT. Garuda. Cross-border corruption carried out by Rolls-Royce is not only corruption committed by a private entity, but the case is also related to efforts to recognize the concept of Foreign Affairs Bribery as a new type of corruption. This research aims to find out the corruption as a transnational crime committed by multinational corporations and how inter-state cooperative actions can prosecute corruption cases. Legal questions raised are: (1) how can the United Nations Convention Against Corruption mechanism be used in exposing the Garuda Indonesia-Rolls Royce corruption case as a transnational crime, and (2) what legal remedies which can be applied to punish corruption committed between Garuda Indonesia-Rolls Royce? This study argues that, as part of transnational crime, of course, Garuda Indonesia and Rolls-Royce's corruption is an extraordinary crime that is not only detrimental to business practices but also the rule of law in Indonesia and other countries involved. Corruption done by Rolls-Royce, which involved Emirsyah Satar as a former director of Garuda Indonesia, has harmed Indonesia. Thus, Jurisdiction of criminal acts of corruption is needed.  It should be under the legal system of corruption eradication in Indonesia. There is a need for interpretation because Indonesia is part of the state which ratified UNCAC through Law No. 7 of 2006. Therefore, recognizing the Foreign Affairs Bribery concept as part of a judge's rechtvinding (finding of law) of the Criminal Court that multinational/transnational corporations comply with and respect the rule of law and eradication of corruption in Indonesia. It includes in making lex specialis (law governing a specific subject matter) related to Foreign Affairs Bribery so that similar cases do not occur in the future for Indonesia.


Keywords: Corruption, Transnational Crime, Garuda Indonesia, Rolls-Royce.

Author Biography

Satria Unggul Wicaksana Prakasa, Universitas Muhammadiyah Surabaya, Indonesia

Satria Unggul Wicaksana Prakasa is a senior lecturer at the Faculty of Law, Universitas Muhammadiyah Surabaya, Indonesia. He is currently Executive Director at the Centre for Anti-Corruption and Democracy (PUSAD) at the same university.

References

Agustinus Pohan, et.al, Panduan Teknis Penyelidikan dan Penyidikan Terhadap Korporasi dalam Tindak Pidana Korupsi, (Jakarta: KPK-RI, 2018).

Adam Edwards & Peter Gill, Transnational organized Crime: Perspectives on Global Security, (London: Routledge, 2003).

Austen L. Parrish, 2012, Domestic Responses to Transnational Crime: The Limits of National Law, Criminal Law Forum (Published by Springer) (2012) 23:275–293.

Damos Dumoli Agusman (2nd Ed), Hukum Perjanjian Internasional: Kajian Teori dan Praktik Indonesia, (Bandung: Refika Aditama).

Dandurand, Yvon, 2007, Strategies and practical measures to strengthen the capacity of prosecution services in dealing with transnational organized crime, terrorism, and corruption, Crime, Law and Social Change; Dordrecht Vol. 47, Iss. 4-5, (Jun 2007): 225-246.

Debra Satz, Markets, Privatization, and Corruption, Social Research, Vol. 80, No. 4, Corruption, Accountability, and Transparency (WINTER 2013), The John Hopkins University Press pp. 993-1008.

Guillermo Jorge & Fernando Felipe Basch, 2013, How has the private sector reacted to the international standard against transnational bribery? Evidence from corporate anti-corruption compliance programs in Argentina, Crime Law Soc Change (Published by Springer Science+Business Media Dordrecht) (2013) 60:165–190.

Heinrich-Böll-Stiftung, Regine Schönenberg (ed), Transnational Organized Crime: Analyses
of a Global Challenge to Democracy, (New York: Springer Verlag, 2013).
Hönke, 2018, Transnational Clientelism, Global (Resource) Governance, and the Disciplining of
Dissent, Jana.International Political Sociology; Oxford Vol. 12, Iss. 2, (Jun 2018):
109 - 124.
Indonesian Corruption Watch, Kajian Implementasi Aturan Trading in Influence Dalam Hukum Nasional, (Jakarta: ICW Pres).

Jan. S. Maringka, Ekstradisi Dalam Sistem Peradilan Pidana, (Jakarta: Sinar Grafika, 2018).

John McFarlane, Transnational Crime: Corruption, Crony Capitalism and Nepotism in Thetwenty First Century, (Sydney: ANU Press, 2013).

Kathleen A. Getz, 2006, The Effectiveness of Global Prohibition Regimes: Corruption and the Anti Bribery Convention. A. Business and Society; Chicago Vol. 45, Iss. 3, (Sep 2006): 254-281.

Klaus von Lampe, 2012, Transnational organized crime challenges for future research, Crime Law Soc Change (2012) 58, Springer: New York.

KPK, Identification Gap Analysist Between Laws/Regulations of The Republic of Indonesia and United Nations Convention Against Corruption, (Jakarta: KPK Publisher, 2006).

Lianlian Liu, The Global Collaboration against Transnational Corruption, (Singapore: Palgrave Macmillan, 2019).

Nick Kochan & Robin Goodyear, Corruption: The New Corporate Challenge, (New York: Palgrave MacMillan, 2011)

Mark Pith dan Radha Ivory, Corporate Criminal Liability: Emergence, Convergence, and Risk, (Basel: Springer, 2010)

Maria Krambia-Kapardis, Corporate Fraud and Corruption: a Holistic Approach to Preventing Financial Crises, (Basingstoke: Palgrave Macmillan, 2016).

Michael Kubiciel & Anna Cornelia Rink, et.al, International Law and Transnational
Organized Crime, (Oxford: Oxford University Press, 2016).

Mitchell Congham, Peter Bell, & Mark Lauches, 2013, Policing Transnational Organized Crime and Corruption: Exploring the Role of Communication Interception Technology, (London: Palgrave Macmillan, 2013).

Nicholas Lord, Regulating Corporate Bribery in International Business: Anti-Corruption in the UK and Germany, (Burlington : Ashgate Publisher, 2014).

Nicholas Lord, 2013, Regulating Transnational Corporate Bribery: Anti-Bribery and Corruption in the UK and Germany, Crime Law Soc Change (published by Springer Science+Business Media Dordrecht) (2013) 60: 127–145.

OECD, OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, Ratification Status as of May 2018, 15th October 2019 http://www.oecd.org/daf/anti-bribery/WGBRatificationStatus.pdf.

Peter Alan Sproat, 2007, An evaluation of the UK’s anti-money laundering and asset recovery regime, Crime Law Soc Change (Published by Springer Science + Business Media B.V) (2007) 47:169–184.

Peter Mahmud Marzuki, Penelitian hukum, (Jakarta: Kencana Prenada Group, 2005).

Philip Reichel & Jay Albanese, The Handbook of Transnational Crime and Justice, (London: Sage Publishing, 2014).

Robert & Johnson, et.al, The Struggle Against Corruption, (Basingstoke: Palgrave Macmillan, 2004).

Rob Evans & David Pegg, “Campaigners condemn closure of Rolls-Royce bribery
inquiry” 10th August 2019 https://www.theguardian.com/business/2019/feb/22/campaigners-condemn closure-of-rolls-royce-bribery-inquiry.

Satria Unggul Wicaksana, 2018, Perdagangan Internasional dan HAM: Relasinya Dengan Sustainable Development, Jurnal Hukum Novelty Vol. 9 No. 1, February 2018.

Sharon Pickering & Jude McCulloch, Beyond Transnational Crime.Social Justice; San Francisco Vol. 34, Iss. 2, (2007): 1-3.

Stefano Manacorda, et.al, 2014, Preventing Corporate Corrupten: The Anti-Bribery Compliance Model, (New York: Springer, 2014).

Stephen Ellias & Susan Levinkind, Legal Research How to Find & Understand the Law (12th Edition), (Berkeley: NOLO, 2004).

Susan Rose-Ackerman (ed), International Handbook on the Economics of Corruption, (Cheltenham: Edward Elgar, 2006)

W. Huisman, et.al, Histories of Transnational Crime, (New York: Springer, 2015).

William P. Olsen, The Anti-Corruption Handbook: How to Protect Your Business in the Global Marketplace, (New Jersey: John Wiley & Sons, Inc., 2010).
Published
2019-12-31
How to Cite
PRAKASA, Satria Unggul Wicaksana. Garuda Indonesia-Rolls Royce Corruption, Transnational Crime, and Eradication Measures. Lentera Hukum, [S.l.], v. 6, n. 3, p. 409-426, dec. 2019. ISSN 2621-3710. Available at: <https://jurnal.unej.ac.id/index.php/ejlh/article/view/14112>. Date accessed: 22 dec. 2024. doi: https://doi.org/10.19184/ejlh.v6i3.14112.
Section
Articles

Most read articles by the same author(s)

Obs.: This plugin requires at least one statistics/report plugin to be enabled. If your statistics plugins provide more than one metric then please also select a main metric on the admin's site settings page and/or on the journal manager's settings pages.