Arifin tried for Rp 1.8t corruption

Arifin tried for Rp 1.8t corruption

JAKARTA (JP): Oil tycoon Arifin Panigoro was indicted at the
South Jakarta District Court on Monday for his alleged
involvement in a corruption scandal worth Rp 1.8 trillion (US$240
million) in issuance of promissory notes.

Attired in a yellow batik shirt and light brown trousers, the
54-year-old Arifin, who is a loyalist of the Indonesian
Democratic Party of Struggle (PDI Perjuangan), calmly entered the
courtroom at about 10 a.m., which was presided over by Judge
Soedarto.

Members of PDI Perjuangan's security force in their black
uniforms and party supporters wearing red T-shirts packed the
courtroom to show support for Arifin.

Arifin is president commissioner of oil company PT Medco
Central Asia, a subsidiary of Medco Group.

According to prosecutor Harun M. Husein, Arifin committed the
crime between Jan. 27, 1997, and April 30, last year.

"The defendant has enriched himself or other parties directly
or indirectly, causing or allegedly causing the Rp 1.8 trillion
state losses," he said.

He said the defendant, who is currently under city arrest, was
charged under Article 1 (1.a) of Corruption Law No. 3/1971 which
carries a maximum penalty of life imprisonment and a Rp 30
million fine.

Harun said the losses consisted of US$201.4 million, Japanese
yen 387.8 million and Rp 89 billion, all in the form of
promissory notes issued by Medco.

He said Medco claimed the funds raised from the notes, which
were bought by Jasindo, would be used as working capital and
investments, including in oil projects in Kazakhstan and
Turkmenistan.

"Medco promised to return the amount of the notes to Jasindo
on time, but when the notes matured last year, Medco had still
note paid the notes," he said.

In a response statement on Monday, one of Arifin's lawyers,
Mohamad Assegaf, reiterated the claim that the case was not a
purely legal case but full of political nuances.

He also accused the prosecutor of hiding facts, saying Medco
has paid 50 percent of the debt to Jasindo.

"(The government) wants me jailed," added Arifin, who is known
for supporting the reform movement before the forced resignation
of president Soeharto last year.

Judge Soedarto adjourned the trial until next week to hear a
response statement from the prosecutor.(jun)