Court sides with KPPU on Pertamina's tanker sale case

The Business Competition Supervisory Commission (KPPU) confirmed on Tuesday a report saying the Supreme Court had ruled in favor of the anti-monopoly watchdog in the high-profile case involving the tender for Pertamina's two super tankers.

KPPU member Pande Radja Silalahi told The Jakarta Post that as a consequence, the Commission would soon file a formal request with a Jakarta district court to execute the ruling, which he said had upheld KPPU's decision issued earlier in the year regarding the case.

"We haven't received the copy of the ruling as yet, but I can confirm that the ruling was issued by the Supreme Court on Nov. 29 upholding our decision issued in March.

"It means that what's left to do now is the execution of the ruling," Pande said, confirming a report by the Tempo daily published on Tuesday.

The report, quoting sources, stated that the Supreme Court had completed its review on the case and issued the ruling favoring the KPPU on Nov. 29.

The legal saga began in March, when the KPPU declared Pertamina and three of its business partners guilty of colluding in the sale of two of the company's tankers worth US$184 million last year.

Pertamina's partners -- Singapore branch of financial advisor Goldman Sachs, PT Equinox, an Indonesian shipping firm that serves as a Pertamina agent, and the tender winner, Bermuda-based Frontline Ltd, a shipping firm -- were ordered to pay a total of US$61.27 million in fines to the state as well as Rp 180 billion ($19.4 million) in penalties.

But, in May, the Central Jakarta District Court overturned KPPU's ruling saying it had found no elements of unhealthy competition in the deal, prompting the Commission to appeal to the Supreme Court.

"It's a victory for the law. We have the law preventing business deals done in an unfair manner, and now it has been justified by the country's highest legal institution," Pande said of the ruling.

Attempts to contact Pertamina officials were unsuccessful. -- JP