Wed, 05 Aug 1998

Pertamina clarifies Ginandjar trip bill

JAKARTA (JP): Cash payments were not part of the assistance provided by state-owned oil and gas company Pertamina to Coordinating Minister for Economy, Finance and Industry Ginandjar Kartasasmita during recent overseas trips, company president Soegianto said yesterday.

Pertamina's assistance was limited to reserving hotel accommodation and transportation services when Ginandjar visited the U.S. on July 7 to July 11 and Tokyo on July 11 to July 15 to discuss Indonesia's year-long economic crisis with government and business leaders of the two countries, he told reporters yesterday.

"It's just to make things easier, but the bills will be the responsibility of Ginandjar's office."

He declined to reveal the amount of the bills, saying they had yet to be forwarded to Ginandjar's office.

A July 2 letter requesting Pertamina's assistance, signed by Ginandjar's secretary K. Inugroho, was leaked to the media Monday, leading to speculation the former oil and mining minister had illegally used the company's money.

Inugroho said there was no truth to the accusation.

"It's only a matter of coordinating things. We asked the help of Pertamina because it has representative offices in the two countries," Inugroho told The Jakarta Post yesterday.

He stressed the hotel and transportation bills would be paid by Ginandjar's office.

Indonesian embassies abroad are often asked for similar assistance during Ginandjar's official visits, he added.

Minister of Mines and Energy Kuntoro Mangkusubroto said Monday he would check Inugroho's letter and make sure no Pertamina money was provided to Ginandjar.

Speculation was fanned because of widespread allegations that many high-ranking officials have used state-owned companies for their personal cash needs.

Pertamina has been a frequent target of accusations due to its lucrative monopoly business.

But company is burdened with a massive US$800 million in outstanding loans because the government has not paid the oil subsidy over the past year. (rei)