THE Central Jakarta District Court sentenced state oil company Pertamina to pay $1.43 million in compensation to Calmusindo Anjaya in the dispute over an agreement on rig leasing.

“The defendant (Pertamina) has been negligent or has violated its promise,” says Ifa Sudewi, the chief judge who examines and tries the case, when reading the ruling in the Central Jakarta District Court.
The compensation ordered is lower than the one asked by Calmusindo. In its lawsuit, the Pekanbaru-based company demands up to $13.26 million in material and immaterial losses.
However, the judge panel only granted $1.43 million in compensation consisting of $892,625 in compensation for idle rig leasing cost for 368 days, $490,943 in immaterial compensation, and $267,787 in moratoir interest.
In its legal consideration, the judge panel rejected Pertamina’s answer saying the lawsuit was misaddressed. Pertamina argued that based on a law, Pertamina’s position had been shifted to Pertamina EP.
The judge panel views the Government Regulation (PP) No. 35/2004 on upstream oil and gas business activity, which is the implementation of the Law No 22/2001, cannot be retroactively applied.
As a result, the partnership contract agreement, signed in 2002, between the two parties can be considered legitimate, valuable, and have legal power.
The judge panel also rejected another Pertamina’s answer saying Calmusindo should also file lawsuit against the upstream oil and gas regulatory agency BP Migas.
Calmusindo’s legal representative Faudjan Muslim viewed the legal consideration of the ruling had been appropriate since the judge panel stated that Pertamina had violated their promise by not paying for idle rig leasing tariff.
“However, we will review whether we should appeal to the ruling or not since the judge panel doesn’t grant Calmusindo compensation as it expects,” says Faudjan after the trial.
No single person from Pertamina was present when the ruling was read. When Bisnis contacted Ida Bagus Dwijaksara, one of Pertamina’s lawyers, the lawyer declined to comment before reading the ruling.
“At the moment, Pertamina is waiting for the release of the ruling by the court,” Ida Bagus sent a text message to Bisnis.
The dispute between the two parties started when Calmusindo alleged Pertamina of not willing to pay for idle rig tariff, which is a tariff that still has to be paid even if the off-shore rig device is idle.
According to Calmusindo, in the contract Pertamina has agreed to pay for the tariff, which is set at 25 per cent of the 24-hour operational tariff.