Pertamina and PLN Must Pay Karaha Bodas
Friday, 13 October, 2006 | 15:00 WIB

Tempo Interactive, Jakarta: he Deputy Minister of State Enterprises, Roes Aryawijaya, stressed that PT Pertamina and PT PLN must pay the fine and interest to Karaha Bodas Company.

“The one who stopped the project was in fact the government, but it had its reasons,” said Roes.

According to him, the project was stopped because Indonesia's economic condition did not support it. Indonesia was almost bankrupt then because of the monetary crisis, so inevitably it had to be stopped. “But the Karaha Bodas project was not the only project that was stopped. There are many other projects, too,” he said.

He said again that those who pay the fine amounting to US$261.1 million plus the four percent interest per year are Pertamina and PLN. “Whoever runs the contract must pay. A contract is a contract,” said Roes.

Previously, Ari Soernano, Pertamina's Managing Director, objected to paying Karaha Bodas. The reason was the party that had stopped the contract was not only Pertamina, but also the government. So the government must also make up the losses.

The Head of DPR Budget Committee, Emir Moeis, also disputed if Karaha Bodas' losses are paid by the government or taken from the State Budget.

According to Emir, the claim must be paid by Pertamina. “The Budget Committee does not want it paid by the State Budget because it's business to business, and is not the government's responsibility,” Emir told Tempo.

Marlina M.S.
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