Conducting BPK Recommendations, Pertamina Patra Niaga Takes Legal Paths Regarding Transactions With PPPI

Legal Path (Photo: dock. unsplash)

JAKARTA - PT Pertamina Patra Niaga as the parent of Pertamina International Marketing & Distribution (PIMD) Pte. Ltd. completed all recommendations from the Supreme Audit Agency (BPK) on cargo transactions with Phoenix Petroleum Philippines Inc. (PPPI) and purchased ships with Hong Lam.

Pertamina Patra Niaga's Corporate Secretary, Irto Ginting, said that currently PIMD is taking legal action to ensure that PIMD's right to cargo transactions with PPPI will be obtained again.

"For the audit of the purchase of 3 (three) barges from Hong Lam, Pertamina Patra Niaga and PIMD have also followed up on their recommendations. The recommendations given are to improve the investment business process and carry out regular monitoring," said Irto in his statement to the media, Friday, December 8.

Irto also ensured that all teah recommendations were carried out. Pertamina Patra Niaga together with PIMD will carry out all BPK recommendations in accordance with the company's commitment to prioritizing good governance aspects in carrying out its business operations.

It is known that previously the BPK found a potential loss from the cargo sales agreement made by PIMD to PPPI and the purchase of ships with Hong Lam which is estimated at 124.53 million US dollars.

BPK's finding is that PIMD sells the capacity cargo through an adequate risk analysis process and does not ensure that the contract is signed by PPPI.

The incident caused PIMD to have the potential to bear losses for the unburdened receivables to PPI in the amount of 124.53 million US dollars and PIMD lost its impoverishment of obtaining a fine of 26.60 million US dollars and being charged with Letter of Credit loan interest as of December 31, 2021, worth 868,270 US dollars.