Court wants KPPU to reveal informers in tanker case

Court wants KPPU to reveal informers in tanker case

Leony Aurora, The Jakarta Post, Jakarta

The saga of Pertamina's tanker sale continues with the state oil
and gas firm and its financial advisor Goldman Sachs demanding
that the Business Competition Supervisory Commission (KPPU)
submit files revealing the agency's informers to court.

In back-to-back court sessions held on Thursday, Pertamina and
Goldman -- which challenged KPPU's ruling that the tanker sale
last year was riddled with irregularities -- requested that all
files used in the investigation, including classified ones, be
submitted to the court for judges to consider.

The KPPU has insisted on protecting its informants'
identities, citing Article 38 of Law No. 5/1999 on monopoly and
unhealthy business competition, which stipulates that the
identity of anyone coming to the commission with information
regarding a violation of the law must be kept secret.

"Who will come forward to report (irregularities) in the
future if we cannot protect their identities?" KPPU's legal
representative David Tobing said after the sessions held at the
Central Jakarta District Court.

Pertamina and Goldman pointed to another article in Supreme
Court regulation No. 1/2003 on legal proceedings on objections to
KPPU's ruling. Article 5 of the regulation says that KPPU is
obligated to surrender its rulings as well as the case files to
the district court.

"Without the files, the trial cannot be continued," said
Timbul Lubis, one of Goldman's lawyers.

Goldman trial presiding judge Mulyani agreed with the
petitioners and gave KPPU one day to surrender the remaining
files to the court.

Tobing said that previously the KPPU had submitted all the
files, including those with the informer's identity. However, as
the judge had said that the files would be made public, it had
retracted the files, ironically, with the court's approval.

"If the judge can guarantee that the informer's identity will
not be revealed to the petitioners, then it's okay with us," he
said. "However, the judge's attitude was clear: there will be no
secrets in the trial."

The tanker saga started with Pertamina's plan to sell two Very
Large Crude Carriers (VLCCs) last year. Bermuda-based Frontline
Shipping Ltd was declared winner of the tender with an offer of
$184 million.

KPPU's investigation found that in the second round of
bidding, another company, Essar Shipping Ltd., was actually the
highest bidder with $183.5 million. Frontline, through its
Indonesian-based agent PT Equinox, raised its offer from $178
million to the winning bid days after.

The court was adjourned for the day and would be continued on
Friday to receive the files from the KPPU.