South Jakarta District Court Rejects Pretrial Karen Agustiawan

Tunggal Judge Tumpanuli Marbun chaired the pretrial decision hearing filed by Karen Agustiawan against the KPK at the South Jakarta District Court, Thursday (2/11/2023). BETWEEN/Muhammad Ramdan

JAKARTA - The South Jakarta District Court (PN Jaksel) rejected the pretrial lawsuit of Karen Agustiawan (KA) regarding the determination of a suspect by the Corruption Eradication Commission (KPK) for the alleged corruption case in the procurement of liquefied natural gas (LNG).

Tunggal Judge Tumpanuli Marbun said the investigation carried out by the KPK as the respondent to establish Karen as a suspect was in accordance with applicable legal procedures and mechanisms.

"The trial in the exception stated that the applicant's exception was unacceptable. Rejected the pretrial application in its entirety," Marbun said as quoted by ANTARA, Thursday, November 2.

Judge Marbun revealed the reasons for the rejection of the pretrial proposed by Karen, who is the President Director of PT Pertamina (Persero) 2009-2014.

One of them, in the alleged corruption case in the procurement of LNG, has suffered state financial losses.

In addition, the evidence held by the KPK in ensnaring Karen is considered very strong and convincing in accordance with applicable legal provisions.

"In the main case, first, stating that the applicant's application cannot be accepted in its entirety, secondly, charge the court fees for the applicant a total of nil," said Marbun.

The KPK previously presented 121 pieces of evidence for the pretrial hearing filed by Karen Agustiawan.

The KPK on Tuesday (19/9) announced that KA was suspected of corruption in the procurement of liquefied natural gas (LNG) at PT Pertamina in 2011 2021.

The alleged corruption case allegedly began around 2012, at that time PT Pertamina had plans to hold LNG as an alternative to overcome the gas deficit in Indonesia.

It is estimated that a gas deficit will occur in Indonesia within 2009-2040, so it is necessary to procure LNG to meet the needs of PT PLN Persero, the fertilizer industry and other petrochemical industries in Indonesia.

Karen, who was appointed as President Director of PT Pertamina Persero for the 2009 period 2014, then issued a policy to cooperate with several LNG manufacturers and suppliers abroad, including the US Corporate Christi Liquefaction (CCL) company LLC.

Karen then unilaterally immediately decided to enter into an agreement contract with CCL without conducting a study to a thorough analysis and did not report it to the Board of Commissioners of PT Pertamina Persero.

In addition, reporting to be discussed within the scope of the general meeting of shareholders (GMS), in this case the government, was not carried out at all so that Karen's actions did not get approval and approval from the government at that time.

In the aftermath of this decision, the LNG cargo belonging to PT Pertamina Persero purchased from the CCL company was not absorbed in the domestic market which resulted in LNG's cargo being oversupply and never entering Indonesian territory.

The condition of the excess supply must then be sold at a loss in the international market by PT Pertamina Persero.

KA or Galaila Karen Kardinah's actions caused and resulted in state financial losses of around US$ 140 million or around Rp. 2.1 trillion.

For his actions, Galaila Karen Kardinah alias Karen Agustiawan is suspected of violating Article 2 paragraph (1) or Article 3 of Law Number 31 of 1999 concerning Eradication of Criminal Acts of Corruption as amended by Law Number 20 of 2001 in conjunction with Article 55 paragraph (1) 1st of the Criminal Code.