Pertamina not allowed to make business with Goldman Sach and partners

State Minister of State Enterprises Sugiharto has temporarily banned state owned oil and gas company Pertamina from making businesses with Goldman Sachs, PT Perusahaan Pelayaran Equinox and Frontline Ltd until the three companies paid the penalty imposed by the Supreme Court for their involvement in the controversial sale of Pertamina's large scale crude oil carrier, Investor Daily reported on Thursday.

"The letter banning Pertamina to do business with three companies was issued as the follow-up of the Supreme Court's verdict which required them to pay penalty," said Sugiharto who sent the letter to Pertamina with a carbon copy to President and Vice President.

In addition to Pertamina, the minister had also sent a similar letter to the three companies which according to the Supreme Court ruling should pay fine and penalties to the government for colluding in the sales of the tankers.

The verdict issued by Supreme Court upheld the decision of the Business Competition Supervisory Commission (KPPU) which ordered the Singapore-based financial advisor Goldman Sachs, PT Equinox, an Indonesian shipping company that served as a Pertamina agent, and the tender winner, Bermuda-based Frontline Ltd, a shipping company to pay total of Rp 61.27 billion in fines to the state as well as Rp 180 billion (US$19.4 million) in penalties.

The Business Competition Supervisory Commission (KPPU) said that Pertamina and its three business partners were guilty of colluding in the sales of two of Pertmina's giant oil tankers.

The commission said the tanker sales had caused the state to suffer a financial loss of up to US$50 million as the tanker was sold with a price of far lower than its market price. (*)