Setya Novanto Earns US$6M from Indonesia’s Riau-1 Project

Setya Novanto in Orange Vest as Cerdict on Corruption Case - Photo: Special

JAKARTA (TheInsiderStories) —Setya Novanto, ex-House of Representatives Chairman, who’s now in prison for electronic ID case, is reported also received dirty money from Riau-1 steam power plant project US$6 million.

The statements comes out during the trial of Johannes Kotjo, one of Singapore’s Blackgold Natural Resources Ltd shareholder. Beside Novantor, several names also received the fees such as PR (Blackgold’ CEO Richard Philip Cecil got $3.1 million), IK (Blackgold’ chairman Intekhab Khan), Rudy (Herlambang, President Director of PT Samantaka Batubara), James (Rijanto, Executive Director of Samantaka Batubara) obtained $1 million each, also Eni Saragih worth of $865 thousands.

Kotjo said, Novanto helped him to open the opportunity to the project and connected him with state-owned electricity enterprise PT Perusahaan Listrik Negara (PLN) CEO Sofyan Basir.
But he complained, the investment gets more costly, after he discussed things with Basir. According to Kotjo, Basir ignored tender mechanism, and chose a scheme based on Presidential Regulation Number 4 Year 2016 about Electricity Infrastructure Development Acceleration.
The beleid stated that electricity infrastructure can be cooperated with electricity power plant developer, by 51 percent shares owned by PLN or its subsidiaries. Though in the end, Basir did not implement the regulation.
Kotjo had asked his director to prepare the agreement documents. He then later realized PLN subsidiary, PT Pembangkit Jawa Bali Investasi (PJBI) that joined Riau-1 power plant, not followed the President Regulation 4/2016, by only deposited 10 percent shares.
Blackgold Natural Resources was burdened by the rest of 41 percent it has to bear. But when Kotjo objected, Basir, threathened him. “It’s ok if you don’t want it. We’ll find another one,” Kotjo imitated Basir.

Blackgold received a Letter of Intent from PLN to obtain Power Plant Purchase Agreement of Riau-1 project in January 2018.

The consortium consists of BlackGold, PBJI, PT PLN Batubara and China Huadian Engineering Co., Ltd. The company will develop, construct, operate and maintain a 2×300 megawatss coal mine of Riau-1 power plant.

Under the agreement, the consortium will incorporate a definitive contract with PLN upon the fulfillment of certain terms and conditions. The consortium will form a joint venture for the Riau-1 Project to finalize a long-term fixed-term and fixed-use agreement with BlackGold subsidiary Samantaka Batubara to supply coal to the project.

PJBI is a powerhouse company aimed at promoting Indonesia’s economic development by providing high-quality, reliable and sustainable energy supply. PJB is a wholly owned subsidiary of PLN.

While, PLN BB provides support to its parent company, PLN to get coal for power plants.

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