Ginanjar grilled over corruption

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.