Tanker case appeals 'better be tried in one court'

Tanker case appeals 'better be tried in one court'

The Jakarta Post, Jakarta

Two separate appeals filed by state oil and gas company PT
Pertamina and three business partners against a ruling from the
Business Competition Supervisory Commission (KPPU), should be
tried in one court, the Supreme Court head says.

"If they are appeals about the same case, it would be more
efficient to appoint one presiding judge," court Chief Justice
Bagir Manan said on Wednesday.

The first hearing of an appeal over the KPPU ruling on the
sale of two very large crude carriers (VLCCs) by Pertamina,
shipping company Frontline Ltd., financial advisor Goldman Sachs
and two local companies was to be heard last week. It was delayed
because the different parties filed the appeals separately in
different courts.

Pertamina, Frontline and Goldman Sachs filed their appeals at
the Central Jakarta District Court but a local company, PT
Corfina Mitrakreasi, submitted its appeal at the South Jakarta
District Court.

Whether all appeals were filed in one court, Bagir said, would
be decided by the Supreme Court. However, the involved district
courts should first send a request letter which as of Wednesday
had not been received by the Supreme Court.

"The decision on which court to try the case in will be made
based on efficiency, the amount evidence tabled and the
witnesses," he added.

KPPU legal representatives David M.L. Tobing backed Bagir's
suggestion saying it would make the sessions more efficient.

"By consolidating the appeals, we will not have to submit the
same investigation papers over and over for every appeal," he
said.

Wednesday's court session, which was the first trial for an
appeal from Frontline, was delayed because KPPU had not yet
submitted the papers.

David said the KPPU had sent a request for the consolidation
of the appeals to the Supreme Court on April 1 and was waiting
for its approval.

Last week, presiding judge Agus Subroto also delayed the first
hearing on Pertamina's appeal.

In its March 3 ruling, the KPPU ordered the Pertamina's boards
of directors and commissioners to explain the case to its
shareholders. Goldman Sachs, Frontline and Equinox, meanwhile,
had been ordered to pay Rp 19.7 billion (US$2.1 million), Rp 25
billion and Rp 16.6 billion in fines respectively.

Goldman and Frontline were also ordered to pay extra sums to
the government -- Rp 60 billion and Rp 120 billion, respectively
-- so as to make up for lost potential revenue.

The four were declared guilty by the KPPU of violating Law No.
5/1999 on monopolies and unfair business competition in the two
VLCCs sales worth US$184 million last year.

At the end of Wednesday's session, presided over by Cicut
Sutiarso, Frontline's legal representative submitted a letter for
reconciliation through a mediation board, saying the company
would withdraw its appeal if the KPPU agreed to cancel its
ruling.

KPPU refused the offer, saying its ruling could not be revoked
by reconciliations as it had a legal basis. "We see this offer as
a written threat because Frontline said in its conclusion that it
might fight back," David said.

Hotman Paris Hutapea, Frontline's legal representative, said
there was a possibility the company would file an international
suit against the KPPU as it considered the ruling had tarnished
the company's credibility. (003)