Wednesday, June 26, 2024

Jusuf Kalla defends ex-Pertamina chief Karen Agustiawan in LNG corruption trial

Reading Time: 2 minutes
Journalist IBP

Journalist

Editor

Interview

Former Indonesian Vice President Jusuf Kalla testified in defense of Karen Agustiawan, the ex-President Director of PT Pertamina (2009-2014), who faces corruption charges related to liquefied natural gas (LNG) transactions from 2011 to 2021.

Kalla expressed bewilderment over Agustiawan’s prosecution, asserting she was simply executing her government-mandated duties.

“I’m puzzled as to why she is being charged. She was fulfilling her responsibilities,” Kalla said on Thursday, May 16, 2024.

Kalla highlighted that Agustiawan was tasked with increasing the proportion of natural gas in the national energy mix to over 30 percent by 2025, as stipulated by Presidential Regulation No. 5/2006 on the National Energy Policy.

When questioned by the judge if he had directed Pertamina to meet this target, Kalla confirmed, “Yes, it was based on directives. The goal was to ensure the natural gas mix exceeded 30 percent.”

In 2013 and 2014, Pertamina signed LNG purchase agreements with Corpus Christi Liquefaction LLC (CCL), a US-based company. This decision has been deemed unlawful by the Corruption Eradication Commission (KPK), which accuses Agustiawan of causing state losses amounting to US$113.84 million (Rp1.77 trillion).

The KPK alleges corruption in the LNG procurement process at Pertamina from 2011 to 2014. Agustiawan is accused of personally enriching herself by Rp1.09 billion and US$104,016 (Rp1.62 billion).

Furthermore, she is alleged to have financially benefited CCL by $113.84 million, resulting in significant losses for the state. Agustiawan is accused of approving gas business developments at several potential LNG refineries in the US without clear procurement guidelines, and granting principle approvals without proper justification, technical and economic analysis, or risk assessment.

Additionally, she reportedly failed to seek written responses from Pertamina’s Board of Commissioners or approval from the General Meeting of Shareholders (RUPS) before signing the LNG purchase agreements for CCL Train 1 and Train 2.

She also allegedly delegated authority to Yenni Andayani, Senior Vice President (SVP) Gas and Power Pertamina (2013-2014), and Hari Karyuliarto, Director of Gas Pertamina (2012-2014).

Journalist IBP

Journalist

 

Editor

 

Interview

SUBSCRIBE NOW
We will provide you with an invoice for your reimbursable expenses.

Free

New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.

Premium

$550 USD/Year

or

$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.

FURTHER READING

The development of bauxite downstream industry is far promising as out of the eight smelters in the government’s pipeline, only one has shown significant progress, a senior government official says.
The Indonesian Ministry of Energy and Mineral Resources (ESDM) is drafting regulations to offer incentives and tax relief to green hydrogen developers, aiming to speed up the growth of the country’s green hydrogen industry.
State electricity company PT PLN has sealed an agreement to supply green energy of 210 Gigawatt hour (GWh) per year to the global fashion company, H&M Group. Through this collaboration, PLN supports decarbonization measures, especially in the country’s industrial sector.
Indonesian Minister of Trade Zulkifli Hasan officiated on Saturday, June 22, 2024, the export of eight containers of high-tech coated steel products to Australia, Canada, and Puerto Rico by PT Tata Metal Lestari.
An expert staff to Indonesian Minister of Energy and Mineral Resources (ESDM) says that the government is finalizing its review into the request for export permit of copper concentrates by PT Freeport Indonesia, with export technicalities being assessed by the Ministry of Finance.
Pertamina New & Renewable Energy (Pertamina NRE), a subsidiary of State-owned energy company Pertamina, has set a target of 6 GW of installed capacity of clean energy-based power plant development by 2029.