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Ex Pertamina CEO Detained by KPK Amid LNG Import Corruption Allegations From the US

Selasa, 19 September 2023 / 23:14 WIB
Ex Pertamina CEO Detained by KPK Amid LNG Import Corruption Allegations From the US
ILUSTRASI. The suspect in the liquefied natural gas (LNG) corruption case, Karen Agustiawan, was presented in front of the media after being declared a suspect in the case at the Red and White Building of the KPK in Jakarta on Tuesday (19/9/2023). The KPK has detained the former President Director of Pertamina, Karen Agustiawan, for being proven guilty of committing a corruption offense that caused a state loss of Rp2.1 trillion. ANTARA FOTO/Muhammad Adimaja/YU

Reporter: Syamsul Ashar | Editor: Syamsul Azhar

KONTAN.CO.ID - JAKARTA. Former CEO of Pertamina, Galaila Karen Agustiawan (GKA) alias Karen Agustiawan (KA) is facing another alleged corruption case.

The Corruption Eradication Commission (KPK) has named Karen Agustiawan as a suspect in the procurement of LNG at PT Pertamina from 2011 to 2021 with an alleged state loss of IDR 2.1 trillion.

Karen Agustiawan is charged under articles 2 and 3 of Law No. 30/2002 on Corruption Crimes (Tipikor) which has been amended by Law No. 20/2021 with a threat of more than 5 years. 

KPK Chairman Firli Bahuri in a press conference on Tuesday (19/9) evening mentioned that the alleged loss came from expert calculations, thus finding a state loss of US$ 140 million or equivalent to IDR 2.1 trillion.

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Firli mentioned that the KPK's investigation is based on information from the public about alleged corruption at Pertamina. "After having two sufficient initial evidences, we conduct an investigation," he said.

The CEO of Pertamina for the period 2009-2014, Karen Agustiawan will subsequently be detained for the first 20 days, namely September 19 - October 8, 2023, at the KPK Detention Center.

Firli narrated, that in 2012 Pertamina Persero bought LNG as an alternative to overcome the potential gas deficit in Indonesia. At that time there was an estimated gas deficit from 2009-2040, so it was necessary to import LNG to meet the needs of PLN, fertilizer and petrochemical, and other industries in Indonesia.

Subsequently, Karen Agustiawan established cooperation with several producers and suppliers of LNG from domestically and abroad such as CCL LLC from the United States.

Firli mentioned, that at the time of policy making, Karen Agustiawan directly decided on the contract agreement with CCL without conducting a thorough study and analysis and did not report to the commissioners.

In addition, at the time of the Pertamina GMS discussion, the government was not immediately held, so the actions of Karen Agustiawan were not approved by the government at that time.

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Along the way, all LNG cargoes owned by Pertamina Persero purchased from CCL LLC United States were not absorbed in the domestic market, resulting in oversupply, even the LNG never entered the Indonesian market. "As a result, LNG had to be sold at a loss by Pertamina in the international market," explained Firli.

Karen Agustiawan's actions contradict the deed and statement of Pertamina's GMS in August 2012 regarding Pertamina's Articles of Association, also violating several Minister of SOE Regulations. "Karen Agustiawan's actions resulted in a financial loss of US$ 140 million or equivalent to IDR 2.1 trillion," explained Firli.

For this action, Karen Agustiawan violated articles 2 and 3 of Law No. 30 /2002 on Corruption Crimes (Tipikor) which has been amended by Law No. 20/2021.

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