Tuesday, February 11, 2025

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

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Julian Isaac

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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).

Julian Isaac

Journalist

 

Editor

 

Interview

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