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Jakarta Post

No need for VP testimony in condensate case, say police

Although former finance minister Sri Mulyani Indrawati may have implicated Vice President Jusuf Kalla in her testimony regarding corruption and money laundering cases, the National Police say there is no urgent need to question Kalla

Fedina S. Sundaryani (The Jakarta Post)
Jakarta
Tue, June 9, 2015 Published on Jun. 9, 2015 Published on 2015-06-09T14:27:08+07:00

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No need for VP testimony in condensate case, say police

A

lthough former finance minister Sri Mulyani Indrawati may have implicated Vice President Jusuf Kalla in her testimony regarding corruption and money laundering cases, the National Police say there is no urgent need to question Kalla.

Sri Mulyani, the current World Bank managing director and chief operating officer, was questioned on Monday in relation to corruption and money laundering cases regarding the selling of state-owned condensate, which involved the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) and refiner PT Trans Pacific Petrochemical Indotama (TPPI), causing state losses of around Rp 2 trillion (US$151 million).

The police'€™s director of general crimes, Brig. Gen. Victor E. Simanjuntak, said on Tuesday that it was unlikely Kalla was directly involved.

"I feel that the Vice President is probably not involved. Yes, he may have approved of certain policies or decisions but TPPI did not follow suit," he said.

According to police investigators, TPPI collaborated with BP Migas, SKK Migas' predecessor, to market condensate in Indonesia. However, the firm never paid profits from sales to the government. Despite suspected foul play, BP Migas extended its contract with the firm.

TPPI had allegedly already lifted condensate more than 10 times before the contract was finalized in April 2010, after which BP Migas continued supplying condensate to the firm.

During Sri Mulyani's testimony, she said that the decision to appoint TPPI was made during a meeting held by Kalla, who was then also vice president under a previous administration.

However, Victor said that initial evidence showed that Kalla oversaw a meeting that decided that TPPI would only be appointed if they sold the condensate they processed to state-owned oil and gas firm Pertamina.

"Instead of following the agreement, TPPI sold the condensate overseas through one of its subsidiary companies," he said. (hhr)(+++)

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