Court sides with KPPU on Pertamina's tanker sale case

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