Former Pertamina Director Claims LNG Procurement Accompanied by Studies
Jakarta — Hari Karyuliarto, who served as Director of Gas at PT Pertamina (Persero) from 2012 to 2014, testified at the Corruption Court (Tipikor) on Monday that the company’s procurement of liquefied natural gas (LNG) from Corpus Christi was accompanied by comprehensive studies, as part of his defence witness testimony.
During the proceedings, Karyuliarto stated that Henny Trisnadewi, former Manager of LNG Trading at Pertamina, confirmed that four consultants were involved in the LNG procurement process.
“There were FGE, Wood Mac, McKinsey, and a top international ship consultant to prepare the LNG procurement and contract signing,” Karyuliarto said following the witness examination session at the Jakarta Central District Corruption Court.
He further argued that the allegation that the LNG procurement in his tenure lacked proper studies was therefore refuted by evidence. The various consultants had examined market analysis, risk assessments, future projections, the gap between supply and demand, and pricing considerations.
Additionally, Karyuliarto stated that internal studies had identified risks should the company fail to proceed with LNG procurement from the United States. “Because at that time it was the only option that was most competitive and cheapest,” he explained.
Karyuliarto is a defendant in a corruption case involving alleged irregularities in the procurement of LNG from Corpus Christi Liquefaction LLC (CCL) by Pertamina and other related institutions during 2011-2021. The case also implicates Yenni Andayani, who served as Vice President of Strategic Planning and Business Development in Pertamina’s Gas Directorate from 2012 to 2013.
Both defendants are accused of causing state financial losses of USD 113.84 million, equivalent to IDR 1.77 trillion, through unlawful conduct that enriched Pertamina President Director Galaila Karen Kardinah (also known as Karen Agustiawan) by IDR 1.09 billion and USD 104,016, whilst enriching CCL by USD 113.84 million.
The prosecution alleges that Karyuliarto failed to establish guidelines for the international LNG procurement process and proceeded with LNG acquisition from Cheniere Energy Inc., whilst Andayani proposed that Karyuliarto sign a Circular Board of Directors Minutes regarding the decision to sign LNG purchase agreements for Train 1 and Train 2 from CCL without supporting economic studies, risk assessments, mitigation plans, or secured LNG buyers under binding agreements.
Both defendants face charges under Article 2(1) or Article 3 of Law Number 31 of 1999 concerning Eradication of Corruption Offences as amended by Law Number 20 of 2001, in conjunction with Articles 55(1) and 64(1) of the Indonesian Criminal Code.