Police Arrest Former SKK Migas Chief for Condensate Graft Case

Screenshot of BeritaSatu TV's Jurnal Pagi program shows former SKKMigas chief Raden Priyono, right. (B1 Photo)

By : Farouk Arnaz | on 12:42 PM February 12, 2016
Category : News, Featured, Corruption

Jakarta. The National Police's Criminal Investigations Unit (Bareskrim) have arrested Raden Priyono, a former chief of the nation's upstream oil and gas regulator SKK Migas, and his former deputy for finance Djoko Harsono in a graft case allegedly resulting from a deal made by the regulator in 2009.

The duo was arrested after being questioned by Bareskrim investigators on Thursday (11/02) in relation to the embezzlement and money laundering case of Trans-Pacific Petrochemical Indotama (TPPI).

The case began when the regulating agency – then known as BP Migas  directly appointed privately owned TPPI to sell its condensate, which went against company regulations.

Instead of selling the condensate to state-owned energy firm Pertamina, as then-vice president Jusuf Kalla  instructed, TPPI made another deal with another company.

The troubled sales process, according to police investigations, reportedly incurred state losses of Rp 2 trillion ($148 million).

Police have also named TPPI's former owner Honggo Wendratmo in the case. However, Honggo failed to fulfill a police summons on Thursday as he is currently in Singapore.

Raden's lawyer, Supriyadi Adi, called the arrests subjective and groundless.

“The reason [police gave], which is to prevent [my client from] escaping, doesn't make sense. Meanwhile, why was Honggo never questioned?” he said.

Supriyadi said the his client is the victim of a policy made by the Energy Ministry's former director for oil and gas Evita Legowo and former finance minister Sri Mulyani, who approved the payment.

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