Pertamina to appeal against court ruling on Donggi Senoro

Friday, November 25 2011 - 01:27 AM WIB

State oil and gas company Pertamina and its partners will soon appeal to the Supreme Court against the Central Jakarta Court?s decision to turn down their objection to the ruling of the Business Competition Supervisory Commission (KPPU) regarding conspiracy in EPC tender for Donggi-Senoro liquefied natural gas (LNG) project in Sulawesi.

Pertamina?s Vice President for Corporate Communications Mochamad Harun said in Jakarta on Thursday that Pertamina was disappointed with the court?s decision that rejected the company?s objection to the KPPU?s ruling.

?Although we are disappointed, we respect the court?s decision. But we will use all legal efforts to oppose the court?s ruling including with an appeal to the Supreme Court,? he said, adding the Pertamina hoped the Supreme Court would be able to see KPPU?s ruling more objectively

?We are sure the Supreme Court will be able to correct the rulings issued by both KPPU and the Central Jakarta court regarding the wrong implementation of the law on the Donggi-Senoro case,? he said. According to him, both KPPU and the court had wrongly interpreted the meaning of a ?beauty contest? in the process of the selection of the winner for the Donggi-Senoro project as a ?tender? as stipulated in the Anti Monopoly and Unfair Business Competition Law.

In January, 2011, KPPU ruled that Pertamina and its three partners including Medco Energi, PT Medco E&P Tomori Sulawesi and Mitsubishi Corporation had been involved in a conspiracy by way of a beauty contest to select the Mitsubishi as the winner of the LNG Donggi Senoro project.

KPPU had found that the consortium of the four companies had conspired to obtain confidential information for composing beauty contest proposal.

The KPPU had imposed fines to each of the consortium members. Mitsubishi Corporation is required to pay Rp 15 billion, PT Pertamina of Rp10 billion, Medco Energy Rp 5 billion and PT Medco E&P Tomori Sulawesi of Rp 1 billion. Total fine reaches a total of Rp 31 billion. (godang/giok)

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