Pak Bambang Assignment - Chandra

7/23/2019 Pak Bambang Assignment - Chandra

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SENTUL CITY BRIBING CASE

Prepared by : Chandra Kurniawan

Class : Batch 22

Subject : Public Relation Ethics

Corporate Communication

Lecturer : Mr. Bambang Sumaryanto

Jakarta



2015

History

Corruption

Corruption is a serious problem in many Asian countries today, especially in

Indonesia. Corruption in Indonesia is growing systemically and implicated

everywhere. For many people corruption is no longer a violation of law, but merely a

habit. This kind of act has changed into a culture of this nations, the development of

corruption in Indonesia also supported the elimination of corruption in Indonesia. The

authorities, like the KPK ( Corruption Eradication Commission ) as the authorized

corporation has tried to do the best they can to reduce corruption in Indonesia.

Based on Mansyur Semma’s Book ( Negara dan Korupsi ), 2008 : “ Corruption as a

phenomenon of irregularities in the social life, culture, society, and the state has long

been critically studied by scientists and philosophers. The Greek philosopher,

Aristotle, Machiavelli followed by, for example, since the beginning has been to

formulate what he calls moral corruption (morally corrupt). Moral corruption refers to

various forms of violations of the constitution, so that the ruling regime in the system-

including democracy -- no longer under the law and no longer serve the interests of

the people, but nothing more than attempt to serve themselves “.

On the other hand, the definition of corruption given by Syed Hussein Alatas,

Corruption was appeared since the days of community traditional. It means that

traditional communities have adopted the first culture of giving a gift to someone as a

respect. But now, its different , they use to give a gift / present as a purpose corruption

to fulfill their need as soon as possible.



According to transperancy.org, as the data below shows that Indonesia’s corruption

rank is 114/177. It means that Indonesia still have a serious issue about corruption.

Based on the data above,shows that Indonesia is one of the most corrupt country in

South East Asia since 2002-2011

Sentul City

Bogor is one of the cities in Indonesia, which has the potential area in property

industry. On of the factors that make city of Bogor potential because of Bogor’s



position is close to the capital city ( Jakarta ). Jakarta has already overcrowded by

many people because the number of entrants that come to Jakarta is huge and it makes

the land of Jakarta was decrease. So, it gives the opportunity to the other city around

Jakarta to develop especially in property area / industry.Bogor is very close to Jakarta. This “ rain city “ is very green and cool. And this

become the extra value that given by Bogor City to the citizen especially the property

developer. The commuter that work in Jakarta is relatively choose Bogor as their

living alternatives, because of the land price is not too expensive, the location, and the

transportation that can easily accessed, such as highway road, train, bus, and the other

urban vehicle.

Sentul City is a housing developer in Sentul Area that build house, town house,

building, public place, commercial, and the other facilities.

The company, PT Sentul City founded in April 1993, is one of Indonesia’s largest

urban developers and is currently engaged in the development of Bukit Sentul as a

self-contained family town. Marketing activities were commenced in September

1993, while construction of housing and infrastructure began in January 1994. The

product range offered to consumers includes homes ready for occupation,

construction-ready housing lots, golf course and golf club, and construction-ready

commercial lots. Through careful planning, Bukit Sentul is able to build infrastructure

capable of meeting both current and future needs that also blends well with the

environment and local conditions. The company aims to build a new town in the cool

Bogor area to the south of Jakarta by offering housing and commercial facilities for

people working in Jakarta and the surrounding region.

The company offered 400 million shares to the public, which shares were

subsequently listed at stock exchange in Indonesia on July 28, 1997. As of June 30,

2000, all of the company’s shares are listed at the stock exchange in Indonesia. The

Company was still booked a net loss in 2005 worth IDR4.881 billion or falling versus

the 2004 net loss which reaches IDR81.372 billion. The lower net loss was due to

increase in net sales from IDR76.940 billion to IDR101.758 billion. (

www.most.co.id/SentulCity )

http://www.most.co.id/SentulCity

http://www.most.co.id/SentulCity



Background of The Problem

One of the Biggest Property Developer in Indonesia ( Sentul City ) is having a

corruption issue that involve the shareholder, stakeholder , and the government.

Cahyadi Kumala as the president commissioner of PT Bukit Jonggol Asri ( The

holding company of Sentul City ) which has a majority share of Sentul City and also

the President Director of PT Sentul City , arrested by the Corruption EradicationCommission ( KPK ) for the bribery and graft to Rachmat Yasin ( Non-Active

Bogor’s Mayor ). Cahyadi arrested in connection with the alleged bribery exchange

on forest areas of 2,754 hectares in Bogor which also involves non-active Bogor’s

Mayor , Rahmat Yasin.

As the result, that Cahyadi has been charged with violating Articles 5 and 13 of the

2001 Corruption Law for allegedly bribing Bogor’s Mayor Rahmat Yasin to issue a

recommendation for the issuance of a permit and Article 21 of the 1999 Corruption

Law for obstructing the KPK investigation.

The situation that is happening now is Sentul City’ President Director and also P.T

Bukit Jonggol Asri’s President Commissioner, Cahyadi Kumala arrested because of

bribe and graft.

Sentul City as the well known property developer in Indonesia want to build a

luxurious housing in Bogor Area with the middle up target market. They have already

build so many housing, commercial, public place, and the other facilities in Sentul

area.

Why Bogor ? Because Sentul City see a opportunity and potential future of property

here, not only that but also Bogor has a green area, fresh area, and not too far from

Jakarta as a capital city of Indonesia.



In order to build the cluster and housing in that area, Sentul City did a lot of ways to

get the land in Bogor Area. One of their way is try to bribe Bogor’s Major ( Rahmat

Yasin ) to get the issuance of 2,754 hectares of protected forest land for Bukit JonggolAsri housing projects in Bogor, West Java.

The Corruption Eradication Commission ( KPK ) as the anti corruption corporation in

Indonesia , suspect the “black” way from PT Bukit Jonggol Asri as the holding

company of PT Sentul City and caught Cahyadi Kumala as the President Director of

PT Bukit Jonggol Asri

As the core issue, Cahyadi Kumala as the President Commissioner of PT Bukit

Jonggol Asri and also the President Director of PT Sentul City arrested by the

Corruption Eradication Commission ( KPK ). He forcibly picked by KPK’s

investigator while having a lunch at Taman Budaya on Tuesday 30 September 2014.

Beginning of this case starting from December 2012 when PT Bukit Jonggol Asri,

apply for exchanging forest area recommendations to Bogor’s Mayor on an area of

2754.85 hectares. On August 20, 2013, Rahmat Yasin ( as Bogor’s Mayor ) published

exchange of letters of recommendation on behalf of the forest area of PT Bukit

Jonggol Asri. The point is to give you that the petition filed by PT BJA in the area can

not be fully accommodated because of the mining license to other companies. So

widely recommended to be exchanged only in the area of 1668.47 hectares.

Then in January 2014, Cahyadi Kumala as President Commisioner of PT Bukit

Jonggol Asri, Ganie Day ( Director of BJA ), and Robin Zulkarnain (member of the

bureau directors Sentul City) , Bogor’s Mayor Rahmat Yasin and Yohan Yap having a

meeting together in Sentul Area, and Cahyadi Kumala demand to Rahmat Yasin about

the letter recommendation exchange of the forest area being applied for BJA

forthcoming as soon as possible.

In order to make the letter recommendation come faster, Cahyadi Kumala told his

assistant ( Yohan Yap ) to bribe Rahmat Yasin (Bogor’s Mayor). Through Rahmat

Yasin’s assistant , Zairin as the Official Bogor Foresty Head.



6th February 2014, Yohan Yap came to Rahmat Yasin House and give him 1 billion

Rupiah.

March 2014 , Yohan Yap came to Rahmat Yasin house and give him 2 billion Rupiah7th May 2014, Yohan Yap met Zairin at Taman Budaya and give him 1.5 billion , then

during the transaction they were caught by Corruption Eradication Commission

( KPK ). Once the money reaches the Zairin, both arrested by the KPK. Investigators

also later arrested Rahmat Yasin.

After they were caught, Yohan charged under Article 5, paragraph 1 of Corruption

Act on the granting of bribes to state officials. He could face five years in prison.

Later on 30 September 2014, Cahyadi Kumala arrested by the KPK in the Cultural

Park ( Taman Budaya ), Sentul for repeatedly absent from the Commission calls.

Swee Teng / Cahyadi Kumala was arrested along with five other people. They are two

drivers, three of his friends, one of which is Robin Zulkarnain as Members of the

Board of Directors Bureau Sentul City.

KPK has set Cahyadi Kumala known as a suspect in the alleged bribery permit the

exchange of forest area in Bogor. Cahyadi became suspect because they have

committed a bribe of Rp 4.5 billion to Bogor’s Mayor ( Rahmat Yasin ). The money

was given to the former regent Rachmat Yasin Bogor in the case of alleged corruption

exchange forest area in the district of Bogor as well attempt to thwart the investigation

of the KPK ( Corruption Eradication Commission)

According to the issue above, the issue is spreading out so fast and with high intensity

because its related to the corruption issue which is so sensitive and important in

Indonesia nowadays. Not only that, it affect to the Sentul City’s stock price

( BKSL.JK ) .

After Yohan Yap and Zaini were caught on 7 th May 2014, Sentul City( BKSL ) stock

price is 184 / share , then declining sharp to 119 / share ( 30 th September 2014 ) when

Cahyadi Kumala arrested by KPK. After that, it fall sharp until 80/share at 30 October

2014.



It shows that the company that have an issue can make their stock price volatile and

more risk, because the investors are not believe about the company and they do not

want invest their money in troubled company. The stock price of Sentul City hasdropped sharply, and make the investors afraid and worry to invest their money in

Sentul City’s stock.

Source : Yahoo Finance ( Bksl.jk )

Source : Yahoo Finance ( Bksl.jk )



According to Rob Brown on How to Your Reputation “ the more effort you put into

keeping your reputation the better. The consequences of a damaged reputation can be

far-reaching. It is very difficult to regain a reputation once it has been damaged. “

Mr Cahyadi Kumala arrested by KPK ( source : Tribunnews.com )

POTTER BOX APPROACH

Dene !ituation Choose

"oyalties



#dentify $alues !elect %rinci%les

Loyalties :

• PT Bukit Jonggol Asri

• PT Sentul City

• Bogor’s Mayor as the regulator and suspect

• Cahyadi Kumala as President Commissioner of PT Buki Jonggol Asri

• Government / Regulators

• KPK ( Corruption Eradication Commission )

• Shareholders of the company

• Employees and Staff

• Public ( Potential Buyer & Customers )

• Media

Values :

• Honesty & Fairness

• Tranparency

• Integrity

•

Environmental Awareness• Accountability

• Customer Priority Oriented

• Public Trust

Principles :

• A high standard of business ethics, professionalism, and fair housing practices.

• Discipline in the management roles

• Authority and Responsibility



The grand design of this issue is to recover Sentul City name after the bribe

and graft case that involved Sentul City’s President Director ( Cahyadi

Kumala ) , regain the investors trust to Sentul City, and also raising Sentul

City’s stock rices!

The ublic relation role of Sentul City is to build and have a good relation"ith the media and #ournalist, not only that , Sentul City do the CS$

( Cororate Social $esonsibility ) % comany give back to &nvestors,

'mloyees, Staffs, Society, etc! and also develoe strategy to regain investors

trust and customer trust, in order to make the stock rice of Sentul City raising

u from todays stock value!

This is very imortant for Sentul City to "ork on the strategy to regain the

reutation as one of the best green roerty develoer in &ndonesia!

&n conclusion, for all these reasons

! Cahyadi Kumala use the forest land to build the Sentul City Proerty Pro#ect!

*! +s the President Director of Sentul City, had maniulated his authority

irresonsibly!

! -e bribed $achmat .asin ( the /ayor of 0ogor ) in order to get the ermit of

the forest land for Sentul City Proerty Develoment!

&t is clear that the actions and ractices of /r! Cahyadi Kumala ( resident

Director of Sentul City ) "ere unethical!

Pak Bambang Assignment - Chandra

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