Former Pertamina director puzzled by detention in LNG procurement corruption case

Former Pertamina (Persero) Gas Director Hari Karyuliarto, who served from 2012 to 2014, said he was astonished by his detention in a case involving alleged corruption in LNG procurement. He noted there were several testimonies indicating that Pertamina benefited from LNG procurement with Corpus Christi, including testimony from Pertamina’s President Director for 2018–2024, Nicke Widyawati. ‘Ms. Nicke acknowledged that Pertamina earned US$97.6 million or more than Rp1 trillion from this Corpus Christi contract for the period 2019 to 2024,’ Hari said after the witness examination at the Jakarta Corruption Court (Tipikor) at the Central Jakarta District Court, on Thursday. In addition, he said, Nicke stated that calculating state losses could not be done partially for the year in which the COVID-19 pandemic occurred. If one indeed wants to calculate the losses from the LNG procurement contract with Corpus Christi, then it must wait until 2040 because the contract ends in 2039; calculating it now would be premature.

Moreover, in the latest Law on State-Owned Enterprises (BUMN), Hari said that losses of BUMN do not constitute state losses. ‘It is 21 years, from 2019 to 2039, 21 years. Only then can losses be calculated in 2040, if I or those involved are still alive.’ The lawyer Wa Ode Nur Zainab commented; ‘She appreciated Nicke’s testimony that Pertamina had reaped profits from LNG procurement.’ She added there were testimonies that Nicke stated there was no crime, bribery, or reprimand from the General Meeting of Shareholders (RUPS) related to LNG procurement with Corpus Christi.

‘Hari is the defendant in the case of alleged corruption in LNG Corpus Christi Liquefaction LLC (CCL) procurement at Pertamina and related agencies for 2011-2021. The case also implicates Yenni Andayani, Vice President Strategic Planning Business Development in the Gas Directorate, 2012-2013.’ The two defendants are suspected of causing state financial losses of US$113.84 million or Rp1.77 trillion, enriching Pertamina’s President Director 2009-2014 Galaila Karen Kardinah alias Karen Agustiawan by Rp1.09 billion and US$104,016 as well as enriching CCL by US$113.84 million. The alleged wrongdoing by both defendants includes Hari not devising guidelines for LNG procurement from international sources and continuing LNG procurement from Cheniere Energy Inc. Yenni proposed Hari sign the Board Circular Resolution about decisions to sign LNG Purchase Agreements for LNG Train 1 and Train 2 from CCL without a business case, risk assessment and mitigations in the procurement process, and without LNG buyers bound by agreements. This means the acts of the two defendants are punishable under Article 2(1) or Article 3 of Law No. 31 of 1999 on the Eradication of Criminal Acts of Corruption as amended and complemented by Law No. 20 of 2001 in conjunction with Article 55(1) 1 and Article 64(1) of the Indonesian Penal Code.