PRESS RELEASE: IPA Very Concerned at The Court Verdict in The Bioremediation Case

Jakarta,24 July 2013 - The IPA is very concerned at the guilty verdicts by the Anti-Corruption Court against the employees of Chevron Pacific Indonesia (CPI) in the Bioremediation case.

The IPA and its members believe that regulatory and legal certainty is a necessity for a stable investment and production climate. The court's verdict creates significant legal uncertainty for our members given that during the trial the government's own jurisdictional agencies - the Ministry of the Environment (KLH) and SKK Migas - testified that the CPI Bioremediation project was in compliance with the applicable laws and regulations of Indonesia.

The court's decision will have wide ranging consequences for the oil and gas industry and negatively impact the investment climate in Indonesia, at a time when the country needs to grow investments to sustain oil and gas production to support its economic growth.

The criminalization of the PSC is a very worrying development for both national and international oil and gas companies and has created a high level of anxiety among the PSC employees that will make it very difficult for the companies and their employees to effectively operate in Indonesia.

As the PSC is a business contract, the IPA position is to continually emphasize that disputes arising from PSC project implementation, when shown to have been undertaken in compliance with applicable laws and regulations, should be governed by the dispute resolution process under the terms of the PSC which are based on civil law principles, not criminal law.

The IPA and all its members are committed to continue operating to the highest ethics and integrity standards and in full compliance with the applicable laws and regulations of Indonesia. IPA promotes implementation of good corporate governance not only within the oil and gas sector, but also in the wider business community in Indonesia.

For further information, please contact:

Dipnala Tamzil
IPA Executive Director
T: 021-5155959 E:


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