Jakarta. Former Vice President Jusuf Kalla (JK) appeared as a mitigating witness at the trial of the alleged corruption case involving the procurement of liquefied natural gas (LNG) by state-owned oil and gas company Pertamina.

The case involves former President Director Galaila Karen Kardinah, also known as Karen Agustiawan. During the trial, JK expressed confusion about Karen Agustiawan's indictment, stating, "I am puzzled because she was just doing her job," in the Corruption Courtroom on Thursday.

JK explained that the allocation of LNG was mandated by Presidential Regulation Number 5 of 2006, requiring Pertamina to fulfill 30 percent of its energy needs with natural gas.

Regarding Pertamina's financial status, JK said he was involved in discussions during his tenure in the government but was unaware of Pertamina's profitability.

"If every company that incurs a loss is to be punished, then all state-owned enterprises would be punished," JK added.

Karen Agustiawan faces charges of causing state losses amounting to $113.84 million (Rp 1.77 trillion) in the alleged corruption case related to LNG procurement at Pertamina from 2011 to 2014. She was detained on Sept. 19, 2023, over accusations that she had unilaterally signed an LNG purchase deal with the American company Corpus Christi Liquefaction (CCL) in 2012.

Former Corruption Eradication Commission (KPK) Chairman Firli Bahuri said in November that this contract was made "without prior analysis and the consent of Pertamina's board of commissioners." Firli himself has been named a suspect by the National Police for extortion involving the then Agriculture Minister Syahrul Yasin Limpo, who is also a suspect under KPK investigation.

Karen's lawyer, Luhut Pangaribuan, explained that JK's testimony aimed to refute charges brought by KPK prosecutors. According to Luhut, Pertamina's purchase of LNG from CCL was in compliance with Presidential Regulation Number 5 of 2006, aimed at ensuring energy security. He noted that this purchase resulted in a profit of around $91 million for Pertamina.

This is not the first time Karen has faced legal issues related to Pertamina's business agreements with foreign firms. On June 10, 2019, she was sentenced to eight years in prison for another corruption case investigated by the Attorney General's Office.

However, in March 2020, the Supreme Court ruled that Pertamina's failure to benefit from a 10 percent participating interest worth $31.5 million in the oil fields did not cause financial losses to the state, leading to Karen's acquittal.

Karen was appointed as the President Director of Pertamina and served from February 5, 2009, until 2015. In 2011, Forbes listed her as the first on its Asia’s 50 Power Businesswomen list. Amidst her outstanding achievements at Pertamina, Karen officially resigned from her position as CEO of Pertamina on October 1, 2014.

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