Former Pertamina President Director Karen Agustiawan Was Charged With Corruption That Made The State Loss Rp1.77 Trillion

The trial for reading the indictment of former Pertamina President Director Karen Agustiawan at the Corruption Court (Tipikor) at the Central Jakarta District Court (PN), Monday (12/02/2024). (ANTARA/Agatha Olivia Victoria)

JAKARTA - President Director (Director) of PT Pertamina (Persero) for the 2009-2014 period Galaila Karen Kardinah alias Karen Agustiawan was charged with causing state losses of 113.84 million US dollars (US) or equivalent to Rp1.77 trillion due to alleged corruption in the procurement of liquefied Natural Gas (LNG) at Pertamina in 2011-2014.

The loss was based on the Report on the Investigative Audit Results of the Indonesian Supreme Audit Agency (BPK) in the context of calculating state losses for the procurement of LNG for US companies, Corpus Christi Liquefaction LLC (CCL) at Pertamina and other relevant agencies Number: 74/LHP/XXI/12/2023 dated December 29, 2023.

"The defendant's actions together with Yenni Andayani and Hari Karyuliarto have resulted in state financial losses by Pertamina of 113.84 million US dollars," said Public Prosecutor of the Corruption Eradication Commission (JPU KPK) Wawan Yunarwanto in reading the indictment at the Jakarta Corruption Court (Tipikor) reported by ANTARA, Monday, February 12.

Prosecutor Wawan revealed that Karen was charged with committing or participating in several acts that must be seen as a continuing act, unlawfully, namely committing acts of enriching oneself, other people, or a corporation, namely enriching yourself amounting to Rp1.09 billion and as much as 104,016 US dollars or equivalent to Rp1.62 billion. Not only enriching yourself, Karen was also charged with enriching a corporation, namely CCL worth 113.84 million US dollars or equivalent to Rp1.77 trillion, which resulted in state financial losses.

In addition, Karen was charged with granting approval for gas business development at several potential LNG refineries in the US without any clear procurement guidelines and only granting principle permits without the support of basic justification, technical and economic analysis, as well as risk analysis.

Karen is also said to have not asked for a written response to the Board of Commissioners of Pertamina and approval of the General Meeting of Shareholders (GMS) before the signing of the 1st and 2nd LNG CCLTrain purchase agreement, as well as granting power to Yenni Andayani as Secretary Vice President (SVP)Gas and PowerPertamina 2013-2014 and Hari Karyuliarto as Director of Gas Pertamina 2012-2014. Both were given the power to sign the LNG SPA (Sales and Purchase Agreement) CCLTrain 1danTrain 2, although not all Pertamina Directors have signed the Risalah of the Board of Directors (RRD) for the LNG SPA CCLTrain 1 and without the approval of the board of directors for the LNG SPA CCL Train 2. "The power is also given by not asking for a written response from the Board of Commissioners of Pertamina and approval of the GMS and the absence of LNG CCL buyers who have been tied up with the agreement," the KPK prosecutor added.

Wawan continued, Karen was also charged with communicating with Blackstone, who is one of the shareholders in Cheniere Energy, Inc., with the aim of getting a position and obtaining a position as Secretary Advisor on the Blackstone Private Equity Group because Pertamina has taken the CCL project.

These actions include contradicting Article 5 paragraph (3) of Law Number 19 of 2003 concerning State-Owned Enterprises and Article 92 and Article 97 of Law Number 40 of 2007 concerning Limited Liability Companies.