Pertamina and PLN Must Pay Karaha Bodas
\nFriday, 13 October, 2006 | 15:00 WIB<\/p>\n
TEMPO Interactive, Jakarta: he Deputy Minister of State Enterprises, Roes Aryawijaya, stressed that PT Pertamina and PT PLN must pay the fine and interest to Karaha Bodas Company.<\/p>\n
\u201cThe one who stopped the project was in fact the government, but it had its reasons,\u201d said Roes.<\/p>\n
According to him, the project was stopped because Indonesia's economic condition did not support it. Indonesia was almost bankrupt then because of the monetary crisis, so inevitably it had to be stopped. \u201cBut the Karaha Bodas project was not the only project that was stopped. There are many other projects, too,\u201d he said.<\/p>\n
He said again that those who pay the fine amounting to US$261.1 million plus the four percent interest per year are Pertamina and PLN. \u201cWhoever runs the contract must pay. A contract is a contract,\u201d said Roes.<\/p>\n
Previously, Ari Soernano, Pertamina's Managing Director, objected to paying Karaha Bodas. The reason was the party that had stopped the contract was not only Pertamina, but also the government. So the government must also make up the losses.<\/p>\n
The Head of DPR Budget Committee, Emir Moeis, also disputed if Karaha Bodas' losses are paid by the government or taken from the State Budget.<\/p>\n
According to Emir, the claim must be paid by Pertamina. \u201cThe Budget Committee does not want it paid by the State Budget because it's business to business, and is not the government's responsibility,\u201d Emir told Tempo.<\/p>\n
Marlina M.S.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/pertamina-and-pln-must-pay-karaha-bodas-1161024553", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }