Balongan suspects set for prosecution

Balongan suspects set for prosecution

JAKARTA: The Attorney General's Office will soon begin prosecuting two suspects accused of misusing at least US$94.9 million in state funds allocated for the development of the Balongan oil refinery in Indramayu, West Java.

The office's spokesman, Barman Zahir, said the dossier on suspect Tabrani Ismail, the former processing director of state oil company Pertamina, was submitted on Friday.

He added the dossier on the other suspect, businessman Erry Putraodang, would be filed separately from Tabrani's.

In 1999, Tabrani proposed a $1.813 billion budget for the project, a calculation provided by a consortium of contractors led by Foster Wheeler of Britain and Japan's Gasoline Constructions.

Pertamina estimated that only about $1.6 billion was needed to fund the project.

"Tabrani failed to submit this second estimate from Pertamina. The state's losses are estimated to be in the range of $94.9 million and $190.58, if we count other costs related to the project," Barman said. -- Antara