Jakarta. The Supreme Court has rejected an appeal by Karen Agustiawan, former CEO of state-run oil company Pertamina, and extended her prison sentence from nine years to 13 years for her corruption conviction.

Karen, who led Pertamina from 2009 to 2014, was found guilty in June last year of causing $113.84 million in state losses through fraudulent liquefied natural gas (LNG) procurement between 2011 and 2014. Prosecutors argued that the deal unfairly benefited the US-based company Cheniere Corpus Christi Liquefaction (CCL), which pocketed the entire amount.

Initially sentenced to nine years in prison by a Jakarta district court, Karen appealed the ruling. However, the Supreme Court announced on Friday that her appeal was denied, and her sentence was extended. In addition to her prison term, she has been ordered to pay a fine of Rp 650 million in the case prosecuted by the Corruption Eradication Commission (KPK).

A Contrast to Her Previous Supreme Court Acquittal
The latest verdict contrasts sharply with a previous Supreme Court ruling in a separate corruption case, in which Karen was initially convicted but later acquitted.

On June 10, 2019, Karen was sentenced to eight years in prison in a corruption case investigated by the Attorney General’s Office. The charges stemmed from Pertamina’s controversial acquisition of a participating interest in the Basker Manta Gummy (BMG) oil fields in the Gippsland Basin, Victoria, Australia. Prosecutors alleged that she abused her authority by authorizing the deal without prior feasibility studies or risk assessments.

The case came to light after Roc Oil Company, the oil block’s operator, halted production on August 20, 2010, rendering Pertamina’s investment worthless. The Attorney General’s Office argued that the deal was made without approval from Pertamina’s board of commissioners and resulted in significant financial losses to the state.

However, in March 2020, the Supreme Court overturned Karen’s conviction, ruling that Pertamina’s failure to profit from its $31.5 million investment in the BMG oil fields did not constitute state financial losses. The decision led to her acquittal.

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