KPK questions MEMR officials in extortion case
Concerns emerge over further delay in project approval
Thursday, September 11 2014 - 12:52 AM WIB
?They have been questioned to reveal alleged extortion practices allegedly committed by JW. We hope their testimonies will help uncover more evidence on the involvement of other parties in the case,? KPK spokesman Johan Budi said, referring to Jero by his initials, but did not provide what information has been gathered by KPK from the witnesses.
Meanwhile, Kompas said that the KPK is set to hold another round of questioning of Jero?s wife, Triesnawati, and daughter Ayu Vibrasita in relation to alleged corruption at the ministry.
The KPK last week declared Jero as suspect in the extortion cases at the ministry in 2011-2013. He has been accused to have collected up to Rp 9.9 billion of illegal funds.
Jero has tendered his resignation, but President Susilo Bambang Yudhoyono has yet to announce a replacement or ad interim minister for the energy sector.
Meanwhile, The Jakarta Post reported Thursday that the resignation of Jero may cause further delay in the approval of a number of high-profile oil and gas projects, such as the development of deep-water projects and the extension of major oil and gas block contracts.
Despite promises that the ministry would be in business as usual, even without Jero, some changes in strategic developments for example, in the Indonesia Deepwater Development (IDD) could not be implemented without the minister?s signature, upstream authority SKK Migas deputy for planning, Aussie Gautama said.
?SKK Migas has validated the changes; however, the [energy and mineral resources] minister has the authority to approve it. In the past, SKK Migas had the guts to make a decision so a project moved forward. For now we can?t, because everyone is in fear of the possibility of being criminalized and wants to be a super complier [to regulations],? Aussie said as quoted by The Post.
Several changes in IDD development needed the minister?s approval, including those related to the increase in investment need to US$12 billion from the previous $6 billion, and the extension of the Selat Makassar production sharing contract (PSC) by another eight years to 2028 to match other PSCs covered in the giant IDD project, the paper said.
Under current regulations, the extension of a PSC can only be submitted 10 years before expiry However, there is no deadline for the government to give a decision whether to extend a contract or terminate it, leading contractors to avoid huge investments due to the uncertainty.
The Energy and Mineral Resources Ministry has been working on a ministerial regulation giving more details over oil and gas block contract extensions.
?There are some matters we still need to discuss? the ministry?s director for upstream oil and gas, Naryanto Wagimin, said, adding that even if the regulation was finished, no one would sign it.
Uncertainty on PSC extensions and delayed permits due to the vacuum in the ministerial post were now the main concerns of most contractors, said Imron Gozali, the corporate secretary of PT Medco Energi Internasional. ?As a contractor, the only thing we have is a PSC. Even in conflict-torn countries like Libya, the authorities are still able to make decisions. But not here," Imron told the Post. (*)