PT Pertamina is ready to integrate the PT Trans-Pacific Petrochemical Indotama (TPPI) refinery with the Tuban Petro's refinery mega project - Photo by Pertamina

JAKARTA (TheInsiderStories) – Former boss of PT Trans Pacific Petrochemical Indonesia (TPPI), Honggo Wendratno, was found guilty of committing a criminal act of corruption in a condensate case, with a state loss of Rp37.8 trillion (US$2.64 billion). He was sentenced to 16 years in prison and a fine of Rp1 billion or subsidiary for six months.

In addition, the attorney general’ office also executed Rp97 billion worth of evidence and refineries in Tuban from convicts who were all returned to the state. According to the deputy attorney general for special crimes, Ali Mukartono, in the process of prosecuting the case, the public prosecutor discovered that there was a sum of money deposited in an account.

He stated, the money deposited into the state treasury was not a substitute money, but the result of the profit of the convicted person based on the Corruption Act Number 31 of 1999 while Wendratno serving in the TPPI.

“This money is a seizure of profits or the elimination of profits from the convicted based on the provisions of Article 18 letter D of the Corruption Act Number 31 of 1999 concerning eradicating criminal acts of corruption,” he said.

The accused of corruption in condensate sales at state run BP Migas is still at large. During the trial of Wendratno, a judge was conducted without his presence or in absentia because of the status of the People Search List.

This case began in 1998 when the economic crisis hit the national economy. TPPI was affected and collapsed, so it was taken over by the government. A number of methods are used by the government to maintain the survival of the TPPI.

In 2009, the Head of BP Migas, Raden Priyono, decided to inject funds to TPPI in the amount of US $ 2.7 billion. It’s just that, lately there was a problem. The company then returned $ 2.5 billion to the Ministry of Finance, but there was still a difference of money that had not been returned.

In June 2015, the National Police headquarters named the defendants as suspects. Likewise with BP Migas’ deputy, Djoko Harsono. Wendratno then ran away. Then, in January 2020, the former CEO of TPPI and his friends began to be tried in Central Jakarta District Court.

Trans Pacific was founded in 1995 by Hashim Djojohadikusumo (50 percent), the brother of defense minister, Prabowo Subianto, together with Njoo Kok Kiong and Wendratno. in 1998, he gave up all of his shares to Indonesian Bank Restructuring Agency to settle the Tirtamas group debt (as the owner) to the parties, most of whom were state-owned enterprises and state financial institutions.

Currently TPPI has been taken by the state-owned company, PT Pertamina and has integrated the company’s refinery with Tuban Petro. The new step was taken after the energy company bought Tuban Petro B series shares worth Rp3.2 trillion and controlled 51 percent of the majority shares.

US$: Rp14,300

Written by Editorial Staff, Email: theinsiderstories@gmail.com