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Policy & Regulation

Jailing of ex-Pertamina boss shocks industry

Karen Agustiawan's conviction for corruption threatens to undermine Pertamina's chances of reviving Indonesia’s struggling oil and gas sector Karen Agustiawan's conviction for corruption threatens to undermine Pertamina's chances of reviving Indonesia’s struggling oil and gas sector.
By Damon Evans 19 June 2019 Asia Pacific / Policy & Regulation 0 34320
Karen Agustiawan at an event hosted by the Center for Strategic & International Studies. (CSIS/Flickr)

Karen Agustiawan, who led Indonesia’s state-owned Pertamina between 2009 and 2014, was sentenced to eight years in prison by the Jakarta Corruption Court on 11 June after being found guilty of causing IDR 568 billion ($39.9 million) in state losses relating to the acquisition of the Basker Manta Gummy (BMG) asset in Australia.

In the absence of concrete evidence against her, the consensus within the industry is that Agustiawan simply made a business investment that went wrong. This happens often in the oil and gas industry,...