Former Pertamina Managing Director Karen Agustiawan Detained Again

The Corruption Eradication Commission named Karen Agustiawan, former Managing Director of PT Pertamina, as a suspect in the alleged corruption case in LNG procurement at Pertamina. The Corruption Eradication Committee detained Karen.

The following article was translated using both Microsoft Azure Open AI and Google Translation AI. The original article can be found in Bekas Dirut Pertamina Karen Agustiawan Kembali Ditahan

KOMPAS/RONY ARIYANTO NUGROHO

Former President Director of PT Pertamina, Karen Agustiawan, was escorted by Corruption Eradication Commission (KPK) officers to undergo an exposure of her detention at the KPK Juang Building in Jakarta on Tuesday (19/9/2023).

JAKARTA, KOMPAS — The Corruption Eradication Commission detained the Director of Utama PT Pertamina Persero for the 2009-2014 period Karen Agustiawan regarding alleged corruption in the procurement of liquefied natural gas at PT Pertamina in 2011-2021. He is suspected of unilaterally deciding to enter into a contract agreement with a foreign company without thorough review and analysis, resulting in state losses of IDR 2.1 trillion.

”KPK has found sufficient preliminary evidence to announce the suspect as GKK or KA, President Director of PT Pertamina Persero 2009-2014. "For investigative purposes, investigators will detain the suspect for the first 20 days from 19 September to 8 October at the KPK detention center," said KPK Chairman Firli Bahuri in Jakarta, Tuesday (19/9/2023) evening.

Previously, in mid-2019, Karen was sentenced to 8 years in prison and fined IDR 1 billion, or 4 months imprisonment in default, by the judges of the Jakarta Corruption Court for being found guilty in a corruption case involving investments in the Basker Manta Gummy (BMG) block in Australia worth IDR 568 billion.

However, in early 2020, the Supreme Court released Karen from all legal charges related to alleged corruption in the BMG block investment. The Supreme Court reasoned that Karen's actions were not a criminal act because the actions were protected by the corporate legal principle business judgment rule. At that time, he had already served 1.5 years in prison.

Also read: After being questioned as a witness at the Corruption Eradication Commission, Dahlan Iskan said the name Karen

KOMPAS/RONY ARIYANTO NUGROHO

Former President Director of PT Pertamina, Karen Agustiawan, was escorted by KPK officers towards a holding car at the KPK building in Jakarta on Tuesday (19/9/2023).

LNG Procurement

The alleged crime of LNG corruption began in 2012 when PT Pertamina planned to procure LNG as an alternative to the gas deficit in the country. At that time, it was estimated that Indonesia would experience a gas deficit in the 2009-2040 period, so it was necessary to procure LNG to meet the needs of PT PLN Persero, the fertilizer and petrochemical industry. As President Director of Pertamina at that time, Karen was considered to have unilaterally issued a policy to collaborate with a number of LNG producers and suppliers from abroad, including the Corpus Christi Liquifaction (CCL) company from the United States.

"When the policy was decided, KA unilaterally decided to enter into a contractual agreement with CCL company without thorough study and analysis, and did not report to the Board of Commissioners of PT Pertamina," he said.

Firli added that Karen also did not report to the government regarding the policy during the general meeting of shareholders (GMS) so the government claimed that it did not give its blessing to this unilateral policy. Then, during its journey, all of PT Pertamina's LNG cargoes purchased from foreign companies were not absorbed in the domestic market. This resulted in an oversupply of LNG cargo so that the goods never entered Indonesia. Ultimately, LNG cargoes must be sold at a loss on the international market.

Due to her actions, Karen is suspected of causing state losses worth 140 million US dollars or the equivalent of Rp. 2.1 trillion. He was also charged with Article 2 Paragraph (1) juncto Article 3 of Law Number 31 of 1999 which has been amended into Law No. 20/2001 concerning Eradication of Corruption Crimes juncto Article 55 Paragraph (1) 1 of the Criminal Code.

"The value of the state's losses is determined according to expert calculations. What we have found today is based on evidence as regulated in Article 184 (Criminal Procedure Code), there are witness statements, letters, clues, and expert testimony. KPK will never take shortcuts in the investigation process," said Firli.

KOMPAS/HERU SRI KUMORO

Chairman of Corruption Eradication Commission (KPK) Filri Bahuri gave a statement to reporters after the inauguration of Johanis Tanak as Deputy Chairman of KPK and member of KPK leadership at the State Palace, Jakarta, on Friday (28/10/2022).

Firli emphasized that the Corruption Eradication Commission (KPK) never targets anyone as a suspect in corruption cases. KPK relies on the process of investigation, as KPK's work will be tested in prosecution and court. The mass media continues to follow the final process of the investigation of alleged corruption in the LNG case.

Separately, a researcher at the Center for Anti-Corruption Studies, Faculty of Law, Gadjah Mada University, Zaenur Rohman, said that separating a case is a consequence of business risks or corruption which tends to be thin. However, there are a number of parameters that the Corruption Eradication Commission can explore to find acts of corruption committed in the business realm, including whether or not there is a conflict of interest, the presence of elements of fraud and kickback.

On the other hand, the KPK must find any procedural errors committed by Karen. In making business decisions, it should have been preceded by a study and approval from the board of commissioners. Moreover, policy-making carries a high risk, and requires careful consideration and adherence to procedures.

"If there is no fraud, no kickback, and no conflict of interest, then the latter depends on whether or not there was negligence or procedural errors committed by Karen," he said.