SENTULCITYBRIBINGCASE

Preparedby:ChandraKurniawan
Class:Batch22
Subject:PublicRelationEthics

CorporateCommunication
Lecturer:Mr.BambangSumaryanto

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.Formanypeoplecorruptionisnolongeraviolationoflaw,butmerelya
habit.Thiskindofacthaschangedintoacultureofthisnations,thedevelopmentof
corruptioninIndonesiaalsosupportedtheeliminationofcorruptioninIndonesia.The
authorities,liketheKPK(CorruptionEradicationCommission)astheauthorized
corporationhastriedtodothebesttheycantoreducecorruptioninIndonesia.
BasedonMansyurSemmasBook(NegaradanKorupsi),2008:Corruptionasa
phenomenonofirregularitiesinthesociallife,culture,society,andthestatehaslong
been critically studied by scientists and philosophers. The Greek philosopher,
Aristotle, Machiavelli followed by, for example, since the beginning has been to
formulatewhathecallsmoralcorruption(morallycorrupt).Moralcorruptionrefersto
variousformsofviolationsoftheconstitution,sothattherulingregimeinthesystem
includingdemocracynolongerunderthelawandnolongerservetheinterestsof
thepeople,butnothingmorethanattempttoservethemselves.
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
traditionalcommunitieshaveadoptedthefirstcultureofgivingagifttosomeoneasa
respect.Butnow,itsdifferent,theyusetogiveagift/presentasapurposecorruption
tofulfilltheirneedassoonaspossible.

Accordingtotransperancy.org,asthedatabelowshowsthatIndonesiascorruption
rankis114/177.ItmeansthatIndonesiastillhaveaseriousissueaboutcorruption.

Basedonthedataabove,showsthatIndonesiaisoneofthemostcorruptcountryin
SouthEastAsiasince20022011

SentulCity
Bogor is one of the cities in Indonesia, which has the potential area in property
industry. Onofthe factors thatmakecityofBogorpotential because ofBogors

positionisclosetothecapitalcity(Jakarta).Jakartahasalreadyovercrowdedby
manypeoplebecausethenumberofentrantsthatcometoJakartaishugeanditmakes
thelandofJakartawasdecrease.So,itgivestheopportunitytotheothercityaround
Jakartatodevelopespeciallyinpropertyarea/industry.
BogorisveryclosetoJakarta.Thisraincityisverygreenandcool.Andthis
becometheextravaluethatgivenbyBogorCitytothecitizenespeciallytheproperty
developer.ThecommuterthatworkinJakartaisrelativelychooseBogorastheir
livingalternatives,becauseofthelandpriceisnottooexpensive,thelocation,andthe
transportationthatcaneasilyaccessed,suchashighwayroad,train,bus,andtheother
urbanvehicle.
Sentul City is a housing developer in Sentul Area that build house, town house,
building,publicplace,commercial,andtheotherfacilities.
Thecompany,PTSentulCityfoundedinApril1993,isoneofIndonesiaslargest
urbandevelopersandiscurrentlyengagedinthedevelopmentofBukitSentulasa
selfcontained family town. Marketing activities were commenced in September
1993,whileconstructionofhousingandinfrastructurebeganinJanuary1994.The
product range offered to consumers includes homes ready for occupation,
constructionready housinglots,golf courseandgolfclub, andconstructionready
commerciallots.Throughcarefulplanning,BukitSentulisabletobuildinfrastructure
capable of meeting both current and future needs that also blends well with the
environmentandlocalconditions.Thecompanyaimstobuildanewtowninthecool
BogorareatothesouthofJakartabyofferinghousingandcommercialfacilitiesfor
peopleworkinginJakartaandthesurroundingregion.
The company offered 400 million shares to the public, which shares were
subsequentlylistedatstockexchangeinIndonesiaonJuly28,1997.AsofJune30,
2000,allofthecompanyssharesarelistedatthestockexchangeinIndonesia.The
Companywasstillbookedanetlossin2005worthIDR4.881billionorfallingversus
the2004netlosswhichreachesIDR81.372billion.Thelowernetlosswasdueto
increase in net sales from IDR76.940 billion to IDR101.758 billion. (
www.most.co.id/SentulCity)

Background of The Problem

One of the Biggest Property Developer in Indonesia ( Sentul City ) is having a
corruptionissuethatinvolvetheshareholder,stakeholder,andthegovernment.
Cahyadi Kumala as the president commissioner of PT Bukit Jonggol Asri ( The
holdingcompanyofSentulCity)whichhasamajorityshareofSentulCityandalso
the PresidentDirectorofPTSentulCity ,arrestedbytheCorruption Eradication
Commission ( KPK ) for the bribery and graft to Rachmat Yasin ( NonActive
BogorsMayor).Cahyadiarrestedinconnectionwiththeallegedbriberyexchange
onforestareasof2,754hectaresinBogorwhichalsoinvolvesnonactiveBogors
Mayor,RahmatYasin.
Astheresult,thatCahyadihasbeenchargedwithviolatingArticles5and13ofthe
2001CorruptionLawforallegedlybribingBogorsMayorRahmatYasintoissuea
recommendationfortheissuanceofapermitandArticle21ofthe1999Corruption
LawforobstructingtheKPKinvestigation.
ThesituationthatishappeningnowisSentulCityPresidentDirectorandalsoP.T
BukitJonggolAsrisPresidentCommissioner,CahyadiKumalaarrestedbecauseof
bribeandgraft.
Sentul City as the well known property developer in Indonesia want to build a
luxurioushousinginBogorAreawiththemiddleuptargetmarket.Theyhavealready
buildsomanyhousing,commercial,publicplace,andtheotherfacilitiesinSentul
area.
WhyBogor?BecauseSentulCityseeaopportunityandpotentialfutureofproperty
here,notonlythatbutalsoBogorhasagreenarea,fresharea,andnottoofarfrom
JakartaasacapitalcityofIndonesia.

Inordertobuildtheclusterandhousinginthatarea,SentulCitydidalotofwaysto
getthelandinBogorArea.OneoftheirwayistrytobribeBogorsMajor(Rahmat
Yasin)togettheissuanceof2,754hectaresofprotectedforestlandforBukitJonggol
AsrihousingprojectsinBogor,WestJava.
TheCorruptionEradicationCommission(KPK)astheanticorruptioncorporationin
Indonesia , suspect the black way from PT Bukit Jonggol Asri as the holding
companyofPTSentulCityandcaughtCahyadiKumalaasthePresidentDirectorof
PTBukitJonggolAsri
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 KPKs
investigatorwhilehavingalunchatTamanBudayaonTuesday30September2014.
BeginningofthiscasestartingfromDecember2012whenPTBukitJonggolAsri,
applyforexchangingforestarearecommendationstoBogorsMayoronanareaof
2754.85hectares.OnAugust20,2013,RahmatYasin(asBogorsMayor)published
exchange of letters of recommendation on behalf of the forest area of PT Bukit
JonggolAsri.ThepointistogiveyouthatthepetitionfiledbyPTBJAintheareacan
notbefullyaccommodatedbecauseofthemininglicensetoothercompanies.So
widelyrecommendedtobeexchangedonlyintheareaof1668.47hectares.
Then in January 2014, Cahyadi Kumala as President Commisioner of PT Bukit
JonggolAsri,GanieDay(DirectorofBJA),andRobinZulkarnain(memberofthe
bureaudirectorsSentulCity),BogorsMayorRahmatYasinandYohanYaphavinga
meetingtogetherinSentulArea,andCahyadiKumalademandtoRahmatYasinabout
the letter recommendation exchange of the forest area being applied for BJA
forthcomingassoonaspossible.
Inordertomaketheletterrecommendationcomefaster,CahyadiKumalatoldhis
assistant(YohanYap)tobribeRahmatYasin(BogorsMayor).ThroughRahmat
Yasinsassistant,ZairinastheOfficialBogorForestyHead.

6thFebruary2014,YohanYapcametoRahmatYasinHouseandgivehim1billion
Rupiah.
March2014,YohanYapcametoRahmatYasinhouseandgivehim2billionRupiah
7thMay2014,YohanYapmetZairinatTamanBudayaandgivehim1.5billion,then
during the transaction they were caught by Corruption Eradication Commission
(KPK).OncethemoneyreachestheZairin,botharrestedbytheKPK.Investigators
alsolaterarrestedRahmatYasin.
Aftertheywerecaught,YohanchargedunderArticle5,paragraph1ofCorruption
Actonthegrantingofbribestostateofficials.Hecouldfacefiveyearsinprison.
Lateron30September2014,CahyadiKumalaarrestedbytheKPKintheCultural
Park(TamanBudaya),SentulforrepeatedlyabsentfromtheCommissioncalls.
SweeTeng/CahyadiKumalawasarrestedalongwithfiveotherpeople.Theyaretwo
drivers,threeofhisfriends,oneofwhichisRobinZulkarnainasMembersofthe
BoardofDirectorsBureauSentulCity.
KPKhassetCahyadiKumalaknownasasuspectintheallegedbriberypermitthe
exchange of forest area in Bogor. Cahyadi became suspect because they have
committedabribeofRp4.5billiontoBogorsMayor(RahmatYasin).Themoney
wasgiventotheformerregentRachmatYasinBogorinthecaseofallegedcorruption
exchangeforestareainthedistrictofBogoraswellattempttothwarttheinvestigation
oftheKPK(CorruptionEradicationCommission)
Accordingtotheissueabove,theissueisspreadingoutsofastandwithhighintensity
because its related to the corruption issue which is so sensitive and important in
Indonesia nowadays. Not only that, it affect to the Sentul Citys stock price
(BKSL.JK).
AfterYohanYapandZainiwerecaughton7 thMay2014,SentulCity(BKSL)stock
priceis184/share,thendecliningsharpto119/share(30 thSeptember2014)when
CahyadiKumalaarrestedbyKPK.Afterthat,itfallsharpuntil80/shareat30October
2014.

Itshowsthatthecompanythathaveanissuecanmaketheirstockpricevolatileand
morerisk,becausetheinvestorsarenotbelieveaboutthecompanyandtheydonot
wantinvesttheirmoneyintroubledcompany. ThestockpriceofSentulCityhas
droppedsharply,andmaketheinvestorsafraidandworrytoinvesttheirmoneyin
SentulCitysstock.

Source:YahooFinance(Bksl.jk)

Source:YahooFinance(Bksl.jk)

AccordingtoRobBrownonHowtoYourReputationthemoreeffortyouputinto
keepingyourreputationthebetter.Theconsequencesofadamagedreputationcanbe
farreaching.Itisverydifficulttoregainareputationonceithasbeendamaged.

MrCahyadiKumalaarrestedbyKPK(source:Tribunnews.com)

POTTER BOX APPROACH

Define Situation
Loyalties

Choose

Identify Values

Select principles

Loyalties:

PTBukitJonggolAsri
PTSentulCity
BogorsMayorastheregulatorandsuspect
CahyadiKumalaasPresidentCommissionerofPTBukiJonggolAsri
Government/Regulators
KPK(CorruptionEradicationCommission)
Shareholdersofthecompany
EmployeesandStaff
Public(PotentialBuyer&Customers)
Media

Values:

Honesty&Fairness
Tranparency
Integrity
EnvironmentalAwareness
Accountability
CustomerPriorityOriented
PublicTrust

Principles:

Ahighstandardofbusinessethics,professionalism,andfairhousingpractices.
Disciplineinthemanagementroles
AuthorityandResponsibility

The grand design of this issue is to recover Sentul City name after the bribe
and graft case that involved Sentul Citys President Director ( Cahyadi
Kumala ) , regain the investors trust to Sentul City, and also raising Sentul
Citys stock prices.
The public relation role of Sentul City is to build and have a good relation
with the media and journalist, not only that , Sentul City do the CSR
( Corporate Social Responsibility ) / company give back to Investors,
Employees, Staffs, Society, etc. and also develope strategy to regain investors
trust and customer trust, in order to make the stock price of Sentul City raising
up from todays stock value.

This is very important for Sentul City to work on the strategy to regain the
reputation as one of the best green property developer in Indonesia.
In conclusion, for all these reasons :
1. Cahyadi Kumala use the forest land to build the Sentul City Property Project.
2. As the President Director of Sentul City, had manipulated his authority
irresponsibly.
3. He bribed Rachmat Yasin ( the Mayor of Bogor ) in order to get the permit of
the forest land for Sentul City Property Development.

It is clear that the actions and practices of Mr. Cahyadi Kumala ( president
Director of Sentul City ) were unethical.