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)