Ginanjar grilled over corruption

The Jakarta Post, Jakarta

Former minister of mines and energy Ginandjar Kartasasmita was grilled on Thursday as a witness in the investigation of an alleged US$190.58 million mark-up in the Balongan oil refinery project in Indramayu, West Java.

The main suspect in the case is the former processing director of state oil company Pertamina, Tabrani Ismail, who was in charge of the project.

Attorney General's Office deputy spokesman Chuck Suryosumpeno said the case revolved around Pertamina's approval of a contract that stated the value of the project was $1.8 billion, when the real cost was believed to be about $1.6 billion.

Ginandjar, in a written statement released to the media, claimed that the project benefited the state because it boosted the price of Indonesian crude oil and liquefied natural gas on the international market and maintained a supply of oil to provinces in Java.

He explained that due to nonrecourse financing and the absence of the state's credit guarantee to the contractors, led by Foster Wheeler of Britain, the oil refinery would be taken over by Pertamina by the end of this year.

Ginandjar is also a suspect in another corruption case involving an oil project, which caused $24.8 million in material losses to the state.