KPK, state firms join foreces on lost assets

The Jakarta Post , Jakarta | Wed, 05/14/2008 10:32 AM | National

The Corruption Eradication Commission (KPK) has agreed with state enterprises to form a joint team to investigate potential losses of state assets including via conversion into private property by officials, retirees or third parties.

On Tuesday the KPK held a meeting with 10 state enterprises, including oil and gas company Pertamina and upstream oil and gas regulatory agency (BP Migas). This was to discuss problems related to corporate asset inventories and assessments on ownership status in order to secure and recover assets worth trillions of rupiah.

KPK deputy chairman Mohammad Jasin said his office will work with the state corporations to find the best solution to the problems.

"The commission has established a special joint team with the corporations to analyze and investigate the cases," he said.

"The problem is crucial because it involves a very large volume of state assets, which in turn affects the wellbeing of the Indonesian people," said Haryono Umar, another deputy chairman of the commission.

He said most of these assets problems are related to unclear ownership status for properties, with many disputes involving other state enterprises, former company officials and third parties.

Haryono said that irregularities in reports on asset depreciation and ownership status for BP Migas was one of the biggest problems.

BP Migas financial control division head Ingrid Tobing said the agency is currently managing US$3 million worth of assets, a value depreciated down from purchase values of US$24 million, under 170 production sharing contracts with foreign companies.

Haryono said he was concerned that many of the agency's assets were under the ownership of foreign companies.

Haryono said the monitoring mechanism of BP Migas assets was really poor and not transparent.

Pertamina is also having property ownership problems.

Dwi Martono, the company's deputy director of asset affairs, said most of Pertamina's properties in Jakarta, worth Rp 4 trillion (US$432 million), do not have ownership certificates or are being occupied by other parties.