JK At The LNG Corruption Court: If Losses Are Punished, All SOEs Must Be Punished

Former Vice President Jusuf Kalla became a mitigating witness for Karen Agustiawan at the Jakarta/PHOTO Corruption Court: Rizky Adytia-VOI

JAKARTA - Vice President 10 and 12 Jusuf Kalla (JK) said that if the loss of state companies leads to a legal process, all State-Owned Enterprises (BUMN) must be dealt with.

He made this statement when he was a witness to lighten or a de charge for the defendant Karen Agustiawan at the trial of the alleged corruption case in the procurement of liquefied natural gas (LNG) at Pertamina for the 2011-2014 period.

It started when JK was confused about Karen Agustiawan who was made a defendant. In fact, only carrying out his duties according to instructions to meet energy needs above 30 percent.

"I participated in discussing this, because I happened to be still in the government at that time," said JK during a trial at the Corruption Court at the Central Jakarta District Court, Thursday, May 16.

"There are indeed policies in that, yes. But you don't know whether Pertamina is losing money or profit, don't you know?" asked the judge.

Responding to this question, JK explained that in doing business, including in BUMN, it will only lead to two things, namely profit or loss. "No-no. But like this, I can add, if a business step loses, there are only two possibilities for him to make a profit or lose," said JK.

JK then emphasized that if all losses lead to a legal process, then all SOEs who do not receive edits must also be dealt with.

"If all companies lose, they must be punished, then all BUMN works must be punished, this is the danger. If all companies lose, they must be punished, then all state companies must be punished, and it will destroy the system," he said.

According to him, in the business of profit and loss will be influenced by many factors. He also involved the COVID-19 pandemic which caused many companies to suffer losses.

"Earlier I said, that this is a policy, it is also influenced by external influences. The problem of COVID, for example, whoever is the president director of Pertamina, whoever is the president director of the work company will lose at that time, because suddenly AC was extinguished, we didn't work, people didn't go to malls, industry closed, definitely prices fell, definitely losses. If Pertamina's president director is punished because of that, I think we act too much, "he said.

In fact, JK also had time to say that if the loss of SOEs always leads to a legal process, it is feared that it will have an impact on the lack of innovation and creativity in advancing state companies.

"That's what I want to say, because this is a danger, later no one will want to work again in a state company if this is the case. Losing two years is immediately punished, it is very dangerous, then no one wants to innovate if that happens," said JK.

In this case, Karen Agustiawan was charged with causing state losses of 113.84 million United States (US) dollars or equivalent to Rp1.77 trillion due to alleged corruption in the procurement of liquefied natural gas or LNG at Pertamina in 2011 2014.

The indictment is based on the Investigative Audit Report of the Supreme Audit Agency (BPK) of the Republic of Indonesia in the context of calculating state losses for the procurement of LNG US company, Corporate Christi Liquefaction LLC (CCL) in Pertamina and other relevant agencies Number: 74/LHP/XXI/12/2023 dated December 29, 2023.

Karen was charged with enriching herself amounting to Rp1.09 billion and 104,016 US dollars or equivalent to Rp1.62 billion. 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, he was also 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 from the Pertamina Board of Commissioners and approval of the General Meeting of Shareholders (GMS) before the signing of the LNG CCL Train 1 and Train 2 purchase agreement and granting power of attorney.