Fri, 19 Dec 2008
From: The Jakarta Post
By Irawaty Wardany, The Jakarta Post, Jakarta
The Corruption Eradication Commission (KPK) has given the Upstream Oil and Gas Regulator (BP Migas) six months to mend its poor inventory system that has given rise to allegations of embezzlement.

Speaking after meeting with BP Migas head R. Priyono, KPK deputy chairman for prevention Haryono Umar said Thursday the flawed system was responsible for the depreciation of the regulator's assets from US$24 billion in 1970 to only $3 billion today.

"BP Migas has to build a new inventory system within six months, which must integrate production, revenue, cost recovery and asset management," Haryono said.

Priyono had asked for two years to meet the KPK's request.

The KPK suggested BP Migas involve around 200 private oil and gas contractors, the Energy and Mineral Resources Ministry, the Finance Ministry and state oil company Pertamina in its plans.

"The asset depreciation has been a chronic problem in the oil and gas sector since 1970. Before BP Migas was established, the sector fell under a division of Pertamina's and has gone through a transition ever since," Haryono said. "BP Migas is a new body and none of previous activities were well documented."

The KPK demanded the regulator uphold transparency over the quality, quantity and price of oil and gas as reflected in its transactions, rather than its own reports.

Haryono said the KPK had also urged BP Migas to change its monitoring of goods and services procurement.

Priyono said he had consulted with the KPK twice regarding the improvement of the inventory system.

"The problem is BP Migas was established in 2001 but only began operating in 2002, while the value of assets kept increasing every year," he said.

Haryono said the KPK was concerned about the depreciation of BP Migas' assets because it involved huge amounts of state money. He added the KPK would seek an audit to see whether any of the assets had been embezzled.

"We will examine all information and ask auditors to help conduct an investigative audit into it," he said.

He add the KPK would launch an investigation if the audit found any indication of corruption.

Earlier this year, the Supreme Audit Body (BPK) and Indonesia Corruption Watch (ICW) reported alleged misappropriation of oil and gas revenue that may have cost the state Rp 200 trillion ($22 billion) in losses.

A BPK audit of government income statements for the 2005-2007 period revealed some Rp 120 trillion in oil revenue went unreported and was spent outside the state budget mechanism.

The BPK also found in its audit for the 2006-2007 period that BP Migas did not pay Rp 40 trillion in recovery costs to the oil and gas producers.

In its report to the KPK, ICW found alleged misappropriation of more than Rp 194 trillion at BP Migas from 2000 to 2007.

ICW said the indications of graft could be seen in the fact reported oil production levels were less than actual production levels, with the annual average discrepancy exceeding 16 million barrels.



News Search/Filter
Transaction Rates
23 May 18
Buy
Sell
AED1
3,851.08
3,851.08
AFN1
197.44
197.44
ALL1
131.46
131.46
AMD1
29.27
29.27
ANG1
7,882.61
7,882.61
AOA1
60.50
60.50
ARS1
580.68
580.68
AUD1
10,745.79
10,745.79
AWG1
7,904.79
7,904.79
AZN1
8,308.75
8,308.75
BAM1
8,543.87
8,543.87
BBD1
7,072.82
7,072.82
BDT1
167.40
167.40
BGN1
8,522.71
8,522.71
BHD1
37,457.04
37,457.04
BIF1
7.90
7.90
BMD1
14,145.65
14,145.65
BND1
10,506.63
10,506.63
BOB1
2,047.69
2,047.69
BRL1
3,859.48
3,859.48
BSD1
14,145.65
14,145.65
BTC1
111,433,632
111,433,632
BTN1
207.90
207.90
BWP1
1,422.67
1,422.67
BYN1
7,094.25
7,094.25
BZD1
7,039.53
7,039.53
CAD1
11,036.86
11,036.86
CDF1
8.75
8.75
CHF1
14,218.85
14,218.85
CLF1
613,162.30
613,162.30
CLP1
22.47
22.47
CNH1
2,228.15
2,228.15
CNY1
2,221.81
2,221.81
COP1
4.91
4.91
CRC1
25.02
25.02
CUC1
14,145.65
14,145.65
CUP1
554.73
554.73
CVE1
150.64
150.64
CZK1
648.52
648.52
DJF1
79.46
79.46
DKK1
2,238.44
2,238.44
DOP1
286.11
286.11
DZD1
121.81
121.81
EGP1
788.84
788.84
ERN1
943.27
943.27
ETB1
514.01
514.01
EUR1
16,670.69
16,670.69
FJD1
6,812.42
6,812.42
FKP1
19,018.62
19,018.62
GBP1
19,018.62
19,018.62
GEL1
5,790.99
5,790.99
GGP1
19,018.62
19,018.62
GHS1
3,051.06
3,051.06
GIP1
19,018.62
19,018.62
GMD1
299.95
299.95
GNF1
1.57
1.57
GTQ1
1,901.14
1,901.14
GYD1
67.85
67.85
HKD1
1,802.12
1,802.12
HNL1
594.51
594.51
HRK1
2,256.37
2,256.37
HTG1
220.82
220.82
HUF1
52.40
52.40
IDR1
1.00
1.00
ILS1
3,967.23
3,967.23
IMP1
19,018.62
19,018.62
INR1
207.95
207.95
IQD1
11.85
11.85
IRR1
0.33
0.33
ISK1
134.85
134.85
JEP1
19,018.62
19,018.62
JMD1
112.49
112.49
JOD1
19,934.49
19,934.49
JPY1
127.74
127.74
KES1
140.28
140.28
KGS1
206.74
206.74
KHR1
3.47
3.47
KMF1
33.87
33.87
KPW1
15.71
15.71
KRW1
13.15
13.15
KWD1
46,830.61
46,830.61
KYD1
16,978.80
16,978.80
KZT1
43.27
43.27
LAK1
1.69
1.69
LBP1
9.35
9.35
LKR1
89.58
89.58
LRD1
105.37
105.37
LSL1
1,116.90
1,116.90
LYD1
10,401.21
10,401.21
MAD1
1,498.28
1,498.28
MDL1
845.41
845.41
MGA1
4.36
4.36
MKD1
270.73
270.73
MMK1
10.43
10.43
MNT1
5.88
5.88
MOP1
1,750.25
1,750.25
MRO1
39.79
39.79
MRU1
395.90
395.90
MUR1
411.22
411.22
MVR1
912.04
912.04
MWK1
19.64
19.64
MXN1
716.83
716.83
MYR1
3,564.93
3,564.93
MZN1
233.23
233.23
NAD1
1,116.90
1,116.90
NGN1
39.18
39.18
NIO1
449.42
449.42
NOK1
1,758.32
1,758.32
NPR1
129.95
129.95
NZD1
9,822.33
9,822.33
OMR1
36,740.33
36,740.33
PAB1
14,145.65
14,145.65
PEN1
4,308.96
4,308.96
PGK1
4,323.57
4,323.57
PHP1
270.64
270.64
PKR1
122.31
122.31
PLN1
3,891.56
3,891.56
PYG1
2.51
2.51
QAR1
3,884.58
3,884.58
RON1
3,602.11
3,602.11
RSD1
141.00
141.00
RUB1
231.28
231.28
RWF1
16.44
16.44
SAR1
3,771.24
3,771.24
SBD1
1,802.12
1,802.12
SCR1
1,051.41
1,051.41
SDG1
785.43
785.43
SEK1
1,632.64
1,632.64
SGD1
10,566.72
10,566.72
SHP1
19,018.62
19,018.62
SLL1
1.81
1.81
SOS1
24.73
24.73
SRD1
1,894.16
1,894.16
SSP1
108.59
108.59
STD1
0.68
0.68
STN1
677.47
677.47
SVC1
1,617.03
1,617.03
SYP1
27.46
27.46
SZL1
1,116.24
1,116.24
THB1
442.25
442.25
TJS1
1,574.75
1,574.75
TMT1
4,030.12
4,030.12
TND1
5,596.01
5,596.01
TOP1
6,205.27
6,205.27
TRY1
3,050.12
3,050.12
TTD1
2,099.52
2,099.52
TWD1
473.59
473.59
TZS1
6.19
6.19
UAH1
543.24
543.24
UGX1
3.79
3.79
USD1
14,145.65
14,145.65
UYU1
450.84
450.84
UZS1
1.76
1.76
VEF1
0.20
0.20
VND1
0.62
0.62
VUV1
132.14
132.14
WST1
5,506.54
5,506.54
XAF1
25.41
25.41
XAG1
235,492.99
235,492.99
XAU1
18,310,104.52
18,310,104.52
XCD1
5,234.18
5,234.18
XDR1
20,161.76
20,161.76
XOF1
25.41
25.41
XPD1
14,216,309.40
14,216,309.40
XPF1
139.70
139.70
XPT1
12,844,156.02
12,844,156.02
YER1
56.45
56.45
ZAR1
1,125.20
1,125.20
ZMW1
1,385.12
1,385.12
ZWL1
43.88
43.88
Taxation Exchange Rates
31 Aug 16 - 06 Sep 16
USD 1
13,232.00
AUD 1
10,043.30
CAD 1
10,213.70
DKK 1
1,999.40
HKD 1
1,706.22
MYR 1
3,283.28
NZD 1
9,623.63
NOK 1
1,605.23
GBP 1
17,433.70
SGD 1
9,757.68
SEK 1
1,569.45
CHF 1
13,631.10
JPY 100
13,101.00
MMK 1
11.01
INR 1
197.29
KWD 1
43,920.70
PKR 1
126.23
PHP 1
285.00
SAR 1
3,528.53
LKR 1
91.12
THB 1
382.08
BND 1
9,756.53
EUR 1
14,885.50
CNY 1
1,987.61

Okusi Associates: Indonesian Business & Management Services