Deputy of Mining, Strategic Industry, and Media of the Ministry of BUMN Fajar Harry Sampurno stated in Jakarta, Wednesday, that the company's commissioner was tasked with overseeing and giving approval and advice.
The approval of the Board of Commissioners was also deemed necessary in the acquisition process to a certain extent.
"However, at Pertamina, all investments are contained in the RKAP (Work Plan and Corporate Budget) then approved in the GMS (General Meeting of Shareholders). It is then submitted to the directors and commissioners for implementation," he remarked.
In the case involving Karen, charged with investing without getting the approval of the board of commissioners, thereby resulting in corruption, the Ministry of BUMN has encouraged good corporate governance. Improvements cover all aspects including procurement to partner searches.
"Rules are made. This has begun, from procurement and others, without compromising on transparency and other aspects. Procurement and finding partners must be separated from the SOP (standard operating procedures). This is being reviewed," he explained.
On a separate occasion, the ESDM Ministry's Director General of Oil and Gas Djoko Siswanto remarked that the Karen Agustiawan case should be an eye-opener to highlight the significance of decision-making based on applicable procedures.
"We adopt the wisdom and the positives, so that for making our decisions in future, we follow all procedures in the internal side as well as those that apply in general in accordance with the applicable rules," he stated.
He gauged that investment in the sector is yet normal, indicated by the signing of oil and gas block contracts and the auction process of work areas.
"Investment is running normally until now. Yesterday, there was a signing; the WK (work area) was also to be auctioned again. Hence, there was (continued) investment," he pointed out.
President Director of PT Pertamina for the 2009-2014 period Karen Galaila Agustiawan was awarded an eight-year prison term and also fined Rp1 billion, substitutable with additional four months in jail, after being convicted of corruption for violating investment procedures at Pertamina in connection with the "participating interest" for Australia's Basker Manta Gummy (BMG) block in 2009.
The judge assessed that Karen Galaila Agustiawan, as upstream director of PT Pertamina for the 2008-2009 period, and director of PT Pertamina for the 2009-2014 period, along with Finance Director of PT Pertamina Frederick ST Siahaan; PT Pertamina 2008 Merger and Acquisition Manager Bayu Kristanto; and Legal Consul and Compliance Genades Panjaitan had committed an illegal act.
It was established that Karen and her allies had decided to invest in the "participating interest" in the BMG Australia block without any "due diligence" and risk analysis followed by the inking of a Sale Purchase Agreement (SPA) without any approval from the legal department and the Board of Commissioners of PT Pertamina, so as to enrich themselves or others, specifically ROC Oil Company (ROC) Limited Australia and cause Rp568,066 billion in financial losses to the country.
EDITED BY INE
Translator: Ade Irma/Eliswan Azly
Editor: Fardah Assegaf
Copyright © ANTARA 2019
