Wednesday, March 21, 2007

Can we learn something from Karaha Bodas case?

Pertamina CEO Ari Soemarno confirmed today that the company should pay USD319 million fines to Karaha Bodas Company (KBC), more than enough to build thousands of new schools for our kids. At the end of the day, state budget should pay to Pertamina. The question, can we really learn something out of it?




Anonymous Anonymous said...

The whole thing stinks. Kahara Bodas is being paid despite not building anything in Indonesia. They won because Pertamina did not properly contest the hearings against it (were paid not to?) and as a result they lost.
In reality the amount of damages is very high relative too the "damage" done. However, Pertamina and the govt had a right to participate in arbitration and chose not too. More fool them.

March 26, 2007 2:26 PM  

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