U.S. rejects RI request over Karaha Bodas case<\/p>\n
A'an Suryana, The Jakarta Post, Jakarta<\/p>\n
The U.S. government had rejected the Indonesian government's
\nrequest to intervene in U.S. court hearings into the dispute
\nbetween state oil and gas company Pertamina and independent power
\nproducer Karaha Bodas Company (KBC), a top government official
\nsaid on Monday.<\/p>\n
However, the U.S. government was ready to help Indonesia by
\nfacilitating an out-of-court settlement to resolve the high-
\nprofile case, said Minister of Energy and Mineral Resources
\nPurnomo Yusgiantoro at a hearing with House of Representatives
\nCommission VIII for energy and mineral resources, environment,
\nscience and technology.<\/p>\n
Purnomo said Indonesia had asked the U.S. government to issue
\na "statement of interest" to the U.S. courts currently hearing
\nthe case. However, the request has been turned down on the
\ngrounds that the U.S. governmental system separates executive
\nfrom judicial power.<\/p>\n
He did not provide details about the "statement of interest",
\nbut the U.S. government sometimes issues a statement to the
\ncourts stating the disputes being examined by the courts could
\naffect the U.S. interest. In that way, the U.S. government can
\ninfluence court decisions.<\/p>\n
Purnomo said Indonesia accepted the U.S. government's offer to
\nfacilitate an out-of-court settlement, saying it was still an
\nopportunity for Pertamina and KBC to resolve the case.<\/p>\n
Purnomo said the geothermal power project in Telaga Bodas,
\nWest Java, which has been abandoned by KBC for years, was still
\nfeasible for development.<\/p>\n
The latest due diligence examination by an independent party
\nstated the geothermal power plant project could be developed to
\ngenerate 30 megawatts to 200 megawatts of power, he said.<\/p>\n
The project was suspended, along with dozens of other power
\nprojects, by former president Soeharto's government in 1998 as
\npart of an agreement with the International Monetary Fund, which
\ncalled for a retrenchment program in the country to cope with the
\neconomic crisis.<\/p>\n
However, KBC filed for arbitration against Pertamina, with
\nwhom it had signed a development contract. The panel of
\narbitrators in Geneva ruled in favor of KBC, ordering Pertamina
\nto pay compensation to KBC.<\/p>\n
Following the arbitration ruling, KBC filed numerous lawsuits
\nin the U.S., Canada, Singapore and Hong Kong to confiscate
\nPertamina's assets in those countries, seeking a staggering
\nUS$261 million in compensation.<\/p>\n
Last year, a Texas court handed down a verdict in favor of
\nKBC, allowing KBC to seize an account in a U.S. bank, which was
\nbelieved to belong to Pertamina.<\/p>\n
However, Pertamina appealed to the higher court, where the
\nhearing is still in progress.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/us-rejects-ri-request-over-karaha-bodas-case-1447893297",
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"sponsor": "Okusi Associates",
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