Court defends Pertamina's tanker sale

The Central Jakarta District Court has rejected a government agency's ruling that Frontline Ltd., the world's biggest oil-tanker owner by capacity, colluded with officials at state oil company PT Pertamina and Goldman Sachs Group Inc. over the sale of two supertankers in June, Kompas daily reported.

"The claim is 'invalid' and therefore is annulled. There was no legal proof on discrimination or monopoly practice in the sale of the tankers," presiding judge Cicut Sutiarso, told the court on Wednesday.

Pertamina sold the two tankers for US$184 million to Bermuda-based Frontline in June, when the market price was between $204 million and $240 million, based on advice from Goldman Sachs, Pande Radja Silalahi, vice chairman of the Business Competition Supervisory Committee (KPPU), told reporters on March 3 in Jakarta.

Frontline, Goldman Sachs and Pertamina have denied the accusation.

The anti-monopoly body ordered Goldman Sachs, the financial adviser for the sale, to pay Rp 19.7 billion in fine and Rp 60 billion in compensation, while Frontline was ordered to pay a fine of Rp 25 billion and compensation of 120 billion.

The antimonopoly agency will appeal the court decision, KPPU's lawyer Daving Tobing told reporters after the court hearing.(*)