Jakarta. Former CEO of state oil and gas company Pertamina, Karen Agustiawan, is facing 11 years in prison and Rp 1 billion fine for her involvement in the corruption of liquefied natural gas (LNG) procurement at Pertamina between 2011 and 2014.

During the sentencing hearing at the Jakarta Corruption Court on Thursday, Public Prosecutor Wawan Yunarwanto of the Corruption Eradication Commission (KPK) also requested additional penalties. He demanded that Karen pay compensation amounting to Rp 1.09 billion and $104,000, substitutable by two years of imprisonment.

The prosecutor further urged the court to deduct the detention period Karen has already served from her total sentence and to keep her in custody.

Moreover, the KPK prosecutor sought compensation from the US company Corpus Christi Liquefaction LLC (CCL), amounting to $113.83 million, or approximately Rp 1.77 trillion.

Wawan highlighted several aggravating factors in Karen's sentencing, including her lack of support for the government's anti-corruption program, her failure to admit her actions, and her inconsistent statements during the investigation.

"On the other hand, the mitigating factor is that the defendant has behaved politely during the trial," he added.

Previously, Karen Agustiawan was indicted for causing state losses amounting to $113.84 million, due to alleged corruption in LNG procurement at Pertamina between 2011 and 2014.

The former Pertamina CEO was charged with enriching herself by Rp 1.09 billion and $104,016, or about Rp 1.62 billion, as well as benefiting US company CCL, by $113.84 million.

Additionally, Karen was accused of approving the development of gas business at several potential LNG refineries in the US without clear procurement guidelines, granting only principal permits without proper justification, technical and economic analysis, or risk analysis.

Karen also allegedly failed to seek written feedback from Pertamina's Board of Commissioners and approval from the General Meeting of Shareholders (RUPS) before signing the LNG Sales and Purchase Agreements (SPA) for CCL Train 1 and Train 2.

She authorized Yenni Andayani, then Senior Vice President (SVP) Gas and Power Pertamina (2013-2014), and Hari Karyuliarto, then Director of Gas Pertamina (2012-2014), to sign the LNG SPA for CCL Train 1 and Train 2, respectively, despite not all Pertamina Directors having signed the Directors Meeting Minutes (RRD) for LNG SPA CCL Train 1 and without board approval for LNG SPA CCL Train 2.

Karen's lawyer, Luhut Pangaribuan, explained that 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 Agustiawan 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 President Director of Pertamina and served from February 5, 2009, until 2015. In 2011, Forbes listed her as the top candidate in its Asia’s 50 Power Businesswomen list. Amidst her outstanding achievements at Pertamina, Karen officially resigned from her position as CEO on October 1, 2014.

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