IPA concerned on criminalization of CPI?s subcontractors
Friday, May 10 2013 - 03:57 PM WIB
?IPA is deeply concerned on the impact and ramification of such legal judgment and that this is a precedent that will affect not only the continuity of oil and gas operations, but also on sustainability of future investment in Indonesia,? the grouping said in a media statement released on Friday.
On Wednesday, a 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, respectively, directors of PT. Green Planet and PT. Sumigita, who are the subcontractors of the CPI?s bioremediation project.
IPA refuted the guilty verdict, saying that oil and gas upstream sector works on the basis of PSC, a contract sanctioned by the 2001 Oil and Gas law as a legal framework to conduct petroleum operations, including legal mechanism to handle potential disputes.
It added that the oil and gas industry is a highly regulated sector. Each of its activities is based on standard review and approval by upstream authority SKK Migas and state agencies and regularly audited by government auditors.
None of those audits conducted on the bioremediation project has found indications of irregularities, let alone causing losses to the state.
IPA?s remarks echoed those issued by SKK Migas, which has also expressed concerns over the verdict. It particularly pointed out as an example confusion over the fact that the two defendants are also required by the court to pay US$9.9 million to cover the so-called state losses, that actually 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 SKK Migas PR Division Head Elan Biantoro.
Editing by Dadan Wijaksana