Pertamina, Goldman Sachs will appeal against KPPU's ruling

Pertamina and financial company Goldman Sachs will appeal against the ruling of the Business Competition Supervisory Commission (KPPU) that the two companies were involved in unfair business practices in the sales of the state-owned oil and gas company's two giant tankers last year.

Pertamina's legal consultant said that the appeal would be filed at the Central Jakarta district court on Friday (today), while the chief officer of Asia Corporate Finance of Goldman Sachs (Singapore) said that the financial company would file its appeal at the same court on March 28.

Both Pertamina and Goldman Sachs denied any involvement in unfair practices in the tankers sales. KPPU declared recently that Pertamina and its three other business partners were guilty of committing unfair business practices in the sales of tankers worth US$184 million.

The commission said the tanker sales had caused the state to suffer a financial loss of up to $50 million as the market price of each VLCC (very large crude carrier) was actually between $120 million and $150 million. Three Pertamina's partners -- Singapore-based financial advisor Goldman Sachs, PT Equinox, an Indonesian shipping company that serves as a Pertamina agent, and the tender winner, Bermuda-based Frontline Ltd, a shipping company -- were ordered to pay a total of Rp 61.27 billion in fines to the state. (*)