Ginandjar pleads not guilty

Ginandjar pleads not guilty

JAKARTA: Former mining and energy minister Ginandjar Kartasasmita appeared on Thursday for questioning as the prime suspect in a fraudulent oil technical assistance contract.

Ginandjar defied the charges, saying the project which he endorsed would have generated revenue and improved efficiency had it run according to the contract. The project materialized after Ginandjar was no longer minister and was continued by the late Ida Bagus Sudjana, who was also named a suspect before he died last month.

The project, which involved state oil company Pertamina and PT Ustra Indo Petrogas (UIP), caused US$23.3 million in state losses.

Ginandjar said the project was aimed at increasing the country's oil output as part of the government's efforts to improve Indonesia's self-reliance.

"At that time the government thought Pertamina needed help to increase oil products. As we lacked funds and technology, we invited the private sector to join," he said.

Deputy Attorney General for special crimes Haryadi Widyasa said Ginandjar was accused of procedural violations because the contract allowed UIP to also manage productive oil wells, whereas normally such a project covers only unproductive wells. -- Antara