Controversial laptop deal

The former education minister for Indonesia, Nadiem Makarim, and his co-founder, the super-app entrepreneur from Southeast Asia Gojek, have been sentenced to 10 years in prison for corruption in connection with a controversial laptop procurement programme. The 41-year-old entrepreneur, who pleaded not guilty, may face up to 15 years in jail if he can’t pay the restitution imposed by the court.

The court also ruled that Makarim should pay back 809 billion rupiah ($45 million/£34 million), the amount alleged as the profits he made from the scheme, in addition to the prison term. If he fails to pay, it would be another five years added to him. He was likewise also fined one billion rupiah and an additional 190 days of incarceration for failure to pay the fine.

In 2019, Makarim switched to the government under former President Joko Widodo and became the Minister of Education until 2024. His conviction has raised questions about whether the case is part of a larger political campaign against critics of his regime, rather than a simple anti-corruption drive, in Indonesia.

One of Southeast Asia’s most successful tech startups, Gojek has more than 170 million users who use its services to hire cars, order food and make digital payments. Makarim is still a favourite among many Indonesians, especially the younger generation, who saw him as a businessman who was concerned with reform.

This case is related to the education ministry’s purchase of Chromebook laptops in 2021 and 2022. Prosecutors said the ministry already had determined the devices were not suitable for much of Indonesia in 2018 because they were highly dependent on internet connectivity, which is limited in many remote areas.

The government nonetheless went ahead with the purchase, after meeting representatives of Google in 2020, prosecutors said. They said the ministry formulated a procurement process that effectively prioritised Google’s own Chrome operating system and put the tech giant in a position where it dominates Indonesia’s educational technology market.

Investigators also said that Makarim had a conflict of interest due to Google’s investment in Gojek, which he continued to have as a member of the government during his tenure. Prosecutors alleged that he caused losses to the state of around 125 million rupiahs and profited from hundreds of billions of rupiahs of deals related to Gojek’s holding company.

During the trial, Makarim has been denying the allegations. He said that Google’s investment in Gojek had nothing to do with the procurement of the laptops and that the government’s effort with the Chromebook programme had helped to cut on expenses.

He also denied that he personally benefited from the deals. The disputed sum of 809 billion rupiahs had not been paid to him, said Makarim, which was still in the company’s books.

In its decision, the panel of judges found that the prosecution failed to prove that Makarim was guilty of unlawful enrichment. The court, however, found that he abused his powers and became corrupt when he used personal business relationships to affect government decisions.

The judges concluded that the procurement process had introduced a conflict of interest and had been structured with an interest of the procurement companies and big technology firms.

The ruling led to emotional scenes in the Jakarta courtroom. Dozens of people, including a group of Gojek drivers dressed in green jackets, surrounded the site of the hearing with banners that read “We are with Nadiem” and “Free Nadiem” before the hearing.

Family members also expressed their support. His mother-in-law, Sania Makki, told reporters, “It’s been a very difficult journey for us as a family for almost 10 months. We have been praying, we’ve been fighting, we’ve been by his side all this time.”

The proceedings were streamed live in a nearby room, where supporters could watch. As the sentence was read out, Makarim cried and cried, and some people outside the court gave a loud booing.

As Makarim walked out of the building, he continued to cry, hugging his supporters and promising to contest the ruling.

“Today I don’t know what words to use to describe my feelings,” he said to reporters. I don’t know where to turn for help, or to whom, or where to seek justice; my only hope is in the people of Indonesia.

‘Feeling of fear’

The case has sparked controversy and worry among the legal community and activists. The anti-corruption legislation is being applied more and more to individuals deemed to be critical of those in power, according to some analysts.

Prosecutor Todung Mulya Lubis, a lawyer and activist, warned that the charges against the trio could give the impression that corruption is being selectively prosecuted. Some are concerned that the decision will prevent more promising young Indonesians from joining the public service.

Many people are now afraid to work with the government because of “legal risks,” political activist Andovi da Lopez said. Some young people have decided that it’s better to stay out of public life, he said.

In Indonesia, the term Makarim is still used to refer to a reformer who attempted to modernise the government institutions but was caught up in an environment with deep-rooted structural issues, said Usman Hamid, executive director of Amnesty International Indonesia.

The case has also been compared to that of other supporters of the former president Joko Widodo, including former trade minister Tom Lembong and politician Hasto Kristiyanto, who were found guilty of corruption but then later pardoned by President Prabowo Subianto.

The verdict comes during a period of growing political and economic tension in Indonesia. The cost of living has been increasing, and the rupiah’s depreciation has exacerbated the public grievances, especially among the younger generation of Indonesians. Protests in the past few weeks have been seen nationwide over policies that critics claim risk the country’s economy.

Makarim’s case is poised to be the central issue in Indonesia’s fight against corruption, politics and reform.