AGO detains Pertamina ex-president director

AGO detains Pertamina ex-president director

Former Pertamina Managing Director Karen Agustiawan (second left) was in prison clothes after undergoing an examination at the AGO Building, Jakarta, on Sept 24, 2018). ANTARA PHOTO/HO/Humas Kejagung/ama

Jakarta (ANTARA News) - The Attorney General Office (AGO) has detained former President Director of PT Pertamina (Persero) Karen Galaila Agustiawan on Monday, as a suspect in the alleged corruption of corporate investment in Australia`s Baster Manta Gummy (BMG) Block in 2009.

Karen, wearing pink vest that reads "Kejaksaan Agung", was transferred to Pondok Bambu prison in East Jakarta and will be detained for 20 days for further investigation.

The Director of investigation at the Deputy Attorney General for Special Crimes (Jampidsus) Warih Sadono confirm the questioning of Karen.

"Yes, she was under investigation," he said.

Karen Agustiawan was named a suspect in the alleged corruption of corporate investment in Australia`s Baster Manta Gummy (BMG) Block on March 22.

The AGO previously has arrested two suspects in the case, namely PT Pertamina Chief Legal Councel and Compliance Genades Panjaitan and former Finance Director Frederik Siahaan.

The alleged corruption case began when Pertamina acquired via its subsidiary PT Pertamina Hulu Energy (PHE) a 10 percent stake in ROC Oil Ltd to work on BMG Block.

The sale and purchase agreement of the BMG project was signed on May 27, 2009. The transaction value amounted to US$31 million.

As a consequence of the acquisition, Pertamina would bear other costs (cash notifications) from the BMG block of US$26 million.

Pertamina hopes that BMG Block can produce up to 812 barrels of oil per day. On November 5, 2010, the BMG block was closed after ROC Oil decided to stop production of crude oil. The reason is that this block is not economical if it continues with production.

Investments that Pertamina finally made in the end does not give the benefits or benefits of increasing the national oil reserves and production.

The results of the AGO survey found irregularities in the investment proposal process in the BMG block. Investment decision was made without the support of feasibility study until the final due diligence step. It is alleged that the Board made the decision without the Commissioner`s approval.

Accordingly, there was a loss of Pertamina`s state finances of US$31 million and US$26 million, equivalent to Rp568 billion.

Reporting by Riza Fahriza
Editing by Sri Hariyati