The old project related to satellites at the Ministry of Defense (Kemhan) is being investigated by the Attorney General’s Office (Kejagung). Coordinating Minister for Political, Legal and Security Affairs Mahfud Md come to talk about who is responsible for this case.
“This has long been a concern of the Attorney General’s Office and we ourselves then conducted an investigative audit, we confirmed at the Attorney General’s Office that it is true that the Attorney General’s Office is currently investigating this issue and we have conveyed our confirmation that it is indeed true,” Mahfud said during a press conference in Jakarta. Coordinating Ministry for Political, Legal and Security Affairs, Thursday (13/1/2022).
“So we submitted it to the Attorney General’s Office for immediate action. Because if there is a violation of the law of a contract, if we have to pay, we have to fight it. Those who are responsible for making the contract, because there is no authority from the state in the state budget that must hold it , to procure satellites in these ways. Moreover, it has been going on for quite a while,” he continued.
Mahfud said that the violation of the law in the project to procure a satellite with an orbital slot of 123 degrees East Longitude is a serious violation of the law. Mahfud said the state would not just let the case go.
Mahfud did not mention in detail who the official responsible for the contract was. However, from the information obtained, the official in question is still active.
“(Since) 2011 there have been feelings about this, according to BPKP. So we consider this a serious violation of the procedure and the state will not allow this, so we ask the Attorney General’s Office to continue what it has done other than this,” he said.
Mahfud said, in the aftermath of the affair, the state lost hundreds of billions of rupiah. This is because the Ministry of Defense (Kemhan) has signed contracts with a number of companies, one of which is Avanti and Navayo.
“Regarding the alleged violation of the law that causes state losses or has the potential to cause state losses because this court is then required to pay a very large amount of money even though the obligation was born from something procedurally wrong and violates the law, namely the Ministry of Defense in 2015, it has been a long time contract with Avanti to do something even though the budget does not yet exist,” he said.
Finally Avanti and Navayo also sued the Indonesian government. Mahfud said that so far the state is obliged to pay the two companies with a value of hundreds of billions of rupiah.
“Then Avanti sued the government at the London Court of International Arbitration because the Ministry of Defense did not pay the satellite lease in accordance with the contract value that had been signed so that on June 9, 2019 the Arbitration Court in England rendered a decision which resulted in the state paying for the rental of the Artemis satellite plus arbitration fees, consultant fees , and the filling fee is Rp 515 billion. So the state will pay Rp 515 billion for a contract that has no basis,” said Mahfud.
“Well, apart from Avanti, the government has just been decided by arbitration in Singapore to pay back the value until now, which is 20,901,209 dollars (USD) to Navayo, must be paid according to arbitration. This 20 million is worth IDR 304 (billion), ” he added.
According to Mahfud, the state has the potential to be billed again by other companies that have signed contracts with the Ministry of Defense, namely Airbus, Detente, Hogan Lovel, and Telesat. On the other hand, Mahfud said that this matter was being investigated by the Attorney General’s Office (AGO).
Mahfud further said that President Joko Widodo (Jokowi) assigned the Coordinating Ministry for Political, Legal and Security Affairs to resolve the issue. He conveyed that the alleged violation of the law behind the satellite procurement had long been discussed in the Cabinet Session in 2018.
“The Coordinating Ministry for Political, Legal and Security Affairs was assigned to resolve this matter by the President based on the Cabinet meeting on August 21 2018. So it has been more than 3 years that we have studied this and we are coordinating with the Attorney General’s Office,” he added.