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Indonesian Tycoons Aguan and Jokowi Sued for $39 Billion Over PIK 2 Project

by Becky
2024-12-17
in News
A A
PIK 2 Project

(Indonesia Sentinel)

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Jakarta, Indonesia Sentinel — A group of individuals has filed a lawsuit against prominent businessman Sugiyanto Kusuma, better known as Aguan, and Indonesia’s seventh president, Joko Widodo (Jokowi), accusing them of illegal actions related to the Pantai Indah Kapuk (PIK) 2 project. The plaintiffs are demanding compensation of Rp 612 trillion (approximately $39 billion) to the state.

The staggering figure raised questions about its origin. According to Ahmad Khozinudin, the plaintiffs’ legal representative, the demand corresponds to Indonesia’s projected 2025 state budget deficit.

“The amount of Rp 612 trillion is the estimated deficit of the 2025 state budget (APBN),” Ahmad explained via WhatsApp on Monday, December 16, 2024.

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He added that the compensation would cover the material and immaterial damages caused by the PIK 2 project, arguing that such funds could address infrastructure losses while reducing Indonesia’s reliance on tax hikes and foreign debt.

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“Beyond compensating for damages, the amount can help plug the state budget deficit. This way, the government doesn’t have to raise taxes or borrow more money,” Ahmad elaborated.

APBN 2025 Deficit Context

The Indonesian Ministry of Finance has projected a deficit of Rp 616.2 trillion (2.53% of GDP) for the 2025 fiscal year, as stipulated in the State Budget Law. Finance Minister Sri Mulyani Indrawati previously described the figure as “moderate and manageable.”

Ahmad contends that a court ruling in favor of the plaintiffs, ordering the defendants to pay damages, would be sufficient to offset this deficit. “If approved, the compensation would be paid to the state through the Ministry of Finance,” he said.

Core Allegations Against PIK 2

The lawsuit highlights eight alleged violations of law tied to the PIK 2 project, part of which is designated as a National Strategic Project (PSN).

The plaintiffs argue that the PSN covers only 1,755 hectares, but land acquisition for the project has expanded far beyond that boundary, allegedly reaching areas as vast as 100,000 hectares, including Serang, Banten.

As part of the lawsuit, the plaintiffs demand:

  1. The immediate suspension of the PIK 2 project, both within and outside PSN-designated areas.
  2. A judicial acknowledgment that the defendants committed unlawful acts in executing the project.

High-Profile Defendants and Plaintiffs

The lawsuit, filed in the Central Jakarta District Court, targets eight high-profile defendants, including:

  1. Sugiyanto Kusuma (Aguan), owner of Agung Sedayu Group
  2. Anthoni Salim, head of Salim Group
  3. PT Pantai Indah Kapuk Dua Tbk (PANI)
  4. PT Kukuh Mandiri Lestari
  5. President Joko Widodo
  6. Coordinating Minister for Economic Affairs Airlangga Hartarto
  7. Surta Wijaya, Chairman of the Indonesian Village Government Association (Apdesi)
  8. Maskota, Chairman of Apdesi Tangerang

The plaintiffs comprise 20 individuals representing various civil groups, including the Indonesian Veterans Forum, chaired by retired TNI Colonel Sugeng Waras, and the People’s Alliance for Justice, led by Menuk Wulandari.

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Legal Battle and Broader Implications

The lawsuit underscores escalating tensions surrounding large-scale development projects in Indonesia, particularly those designated as National Strategic Projects. Critics argue that these projects often lead to environmental damage, forced land acquisitions, and societal inequities.

The first hearing, held on December 16, 2024, marks the beginning of what could be a prolonged legal battle. If successful, the lawsuit would set a significant precedent for accountability in Indonesia’s infrastructure development landscape.

 

(Becky)

Tags: AguanIndonesian TycoonjokowiPantai Indah KapukPIK 2state budget
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