AGO denounced over bioremediation case verdict

The recent guilty verdict handed down by Attorney?s General Office (AGO) on PT Chevron Pacific Indonesia?s bioremediation project case is legally flawed and shows a lack of knowledge on the part of law apparatus on the basic principles of PSC in particular, and on upstream activities in general.

According to Sulistya Hastuti Wahyu, who spoke to petromindo.com on behalf of Ex-BPMIGAS Family Forum, there are two main reasons why AGO was incorrect in turning this project into a corruption case; firstly the project is regulated under a PSC, a binding contract between the authority and contractor, which falls under the civil law jurisdiction and not public law, or in this case corruption.

?The second reason, there is no element of state losses whatsoever in this project,? said Sulistya, who previously headed survey operation and drilling department at BPMIGAS, which has now been replaced by SKK Migas.

?So making this a corruption case is a clear violation by AGO considering that PSC, based on Constitutional Court No. 36/PUU-X/2012, is regulated under civil law. Even if there is an indication of irregularities for instance, especially indication of criminal act, it should have fallen into general criminal or environment-related affairs case, and not corruption case,? added Sulistya..

Only recently, special court of corruption sentenced Herlan bin Ompu to six years in prison and a fine of Rp 250 million, and Riscky Prematuri to five years in prison and a fine of 200 million. They are also required to pay the state for the losses of about US$ 9.9 million. The two are directors of, respectively, PT. Green Planet and PT. Sumigita who are the subcontractors of the CPI?s bioremediation project.

Sulistya?s remarks echoed the waves of objection towards AGO from the oil and gas upstream industry.

Previously, Indonesia Petroleum Association (IPA), which represents more than 90 percent of exploration and production activities in Indonesia, and upstream authority SKK Migas have expressed concerns that the case would deter investment and activities within the sector.

SKK Migas PR Division Head Elan Biantoro questioned the whole proceeding, saying the project had caused no losses to the state.

Elan said it?s confusing to learn the fact that the two defendants are required by the court to pay US$9.9 million to cover the so-called state losses that never exist in the first place. ?None of the money spent on this bioremediation project has been incorporated by SKK Migas in the cost recovery account, so up to now the project has not caused any financial losses to the state,? said Elan.

Editing by Dadan Wijaksana