Bank of America still freezes Pertamina?s accounts

Bank of America still freezes five percent of Pertamina?s accounts worth about US$130 million in the bank despite the state owed oil and gas company?s explanation that all of the funds are owned by the Indonesian government, Kompas daily reported on Friday.

Pertamina?s spokesman Ridwan Nyak said in Jakarta on Thursday that a team comprising of government and Pertamina representatives would again meet the New York court?s official to demand the release all of the funds kept in the state oil and gas company?s accounts in the bank.

A New York court ordered recently Bank of America to restrain Pertamina?s accounts worth US$130 million following the international arbitrary body?s decision to require the state owned oil and gas company to pay Karaha Bodas Company US$261 million as the compensation for the suspension of its geothermal power project in West Java.

Pertamina opposed the decision arguing that all the funds deposited by the company in the bank were owned by the government. A joint team comprising of government and Pertamina representatives then contested the American court?s decision. The court agreed but it still ordered the bank to restrain five percent of the money.

Ridwan said that based on Foreign Sovereign Immunity Act (FSIA), the government?s funds kept in American banks could not be restrained, or immune from any intervention from other parties. (*)