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