Appeals against KPPU tanker ruling must be joined
Leony Aurora, The Jakarta Post/Jakarta
Judicial panels at the Central Jakarta District Court have decided to support a decree by the Supreme Court, saying all appeals against state oil and gas company PT Pertamina's tanker sale ruling must be consolidated into a single file.
The panels of judges halted all examinations in separate sessions on lawsuits against a controversial Business Competition Supervisory Commission (KPPU) ruling filed by Pertamina, financial advisor Goldman Sachs and tender winner Frontline Shipping Ltd., held on Thursday.
Pertamina's and Goldman's appeals had actually reached the closing stages, a step away from a verdict.
"We'll now have to return the case files to the head of the Central Jakarta District Court to be consolidated into one file with a new panel of judges," said Cicut Sutiarso, who presided over Frontline's case.
It is unclear whether the new judicial panel will hear the evidence and testimony all over again. "It is up to the judges," said Cicut.
The court decision came a day after the Supreme Court's ruling, and sparked mixed responses from the parties involved.
The plaintiffs protested strongly, saying that it came too late and that the court proceedings had already reached an advanced stage. All of the companies challenging the KPPU ruling -- including Frontline's local agent PT Equinox, which filed its appeal in the South Jakarta District Court -- have sent objection letters to the Supreme Court.
To save time and energy, the lawyers requested that all documents and evidence already submitted be included in the consolidated file and that the new panel of judges could not repeat the court proceedings that had been conducted earlier.
The KPPU, however, welcomed the Supreme Court decree, saying that "we will stand by the law". The commission insisted that all proceedings should be done afresh with the new consolidated file.
The Supreme Court decree, signed on April 13 but received a week later, was based on Article 4 of Supreme Court Regulation No. 1/2003 on appeals against KPPU rulings.
The article stipulates that if appeals are brought by more than one business entity before different courts against one KPPU ruling, the KPPU can ask the Supreme Court to designate a single District Court to examine all of the appeals.
The tanker saga started with Pertamina's plan to sell two Very Large Crude Carriers (VLCCs) last year. Bermuda-based Frontline was declared winner of the tender with an offer of $184 million.
After investigating for a few months, KPPU announced in early March that the deal was riddled with irregularities.
KPPU found that in the second round of bidding, another company called Essar Shipping Ltd. had earlier bid $183.5 million. Frontline, through Equinox, raised its offer from $178 million to the winning bid days later.
In its defense, Goldman said that Essar was not selected as the tender winner (despite its higher initial offer) as it could not provide the required down payment.