Indonesian Political, Business & Finance News

Judge States LNG Corruption Case Costs State Rp 1.77 Trillion

| | Source: KOMPAS Translated from Indonesian | Legal
Judge States LNG Corruption Case Costs State Rp 1.77 Trillion
Image: KOMPAS

The Corruption Court panel at the Central Jakarta District Court has stated that the alleged corruption case in the procurement of liquefied natural gas (LNG) by PT Pertamina (Persero) has resulted in a loss to state finances amounting to US$113.84 million, equivalent to Rp1.77 trillion. “This is based on the investigative audit results from the Financial Audit Board of the Republic of Indonesia regarding the calculation of state losses from the LNG procurement at Corpus Christi Liquefaction by PT Pertamina and related institutions,” said Judge Hiashinta Fransiska Manalu during the verdict reading session at the Corruption Court at the Central Jakarta District Court on Monday (4/5/2026), quoted from Antara. Hiashinta stated that the state loss occurred following profits gained by Pertamina’s President Director for the 2009-2014 period, Galaila Karen Kardinah alias Karen Agustiawan, and Corpus Christi Liquefaction (CCL) in the case. The panel of judges opined that the two defendants had engaged in a series of actions inconsistent with the parameters for state-owned enterprise (SOE) management, which should conduct business properly and correctly. The judge stated that in conducting business, the defendants should adhere to the principles of good corporate governance, including transparency, accountability, responsibility, independence, and fairness. Hairi also proposed that Karen sign a power of attorney addressed to Hari to sign the LNG Sales and Purchase Agreement (SPA) for Train 2 without supporting board approval, written response from the board of commissioners, and shareholder general meeting (AGM) approval, as well as without a bound buyer for CCL LNG. Meanwhile, Yenni was deemed guilty for proposing to Hari to sign the board meeting minutes regarding the decision on signing the LNG Train 1 and Train 2 purchase agreement from CCL. Yenni was also proven to have signed the Train 1 SPA for LNG purchase between PT Pertamina (Persero) and CCL on 4 December 2013 based on a power of attorney from Karen, even though not all Pertamina directors had signed the board meeting minutes. The signing of the SPA was done by Yenni without written response from Pertamina’s Board of Commissioners and AGM approval, as well as without a bound Corpus Christi LNG buyer under an agreement. For their actions, Hari was sentenced to 4.5 years in prison, while Yenni received 3.5 years in prison. Hari and Yenni were also fined Rp200 million, subsidiary 80 days imprisonment. Thus, both were proven to have violated Article 3 of Law No. 31 of 1999 on the Eradication of Criminal Acts of Corruption as amended and supplemented by Law No. 20 of 2001 in conjunction with Article 55 paragraph (1) first jo. Article 64 paragraph (1) of the Criminal Code.

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