Govt Losses US$1.3 Billion from Oil Contract

VIVAnews - The Department of Finance will look into wrong contract concerning oil and gas companies. The investigation is carried out due to a finding made by the Supreme Audit Agency with regard to possible losses of state revenue valuing Rp 14.58 trillion (US$1.3 billion).

Finance Minister Sri Mulyani Indrawati said if the error was merely because of the contract, the government will soon revise.

According to Mulyani, the government agreed with the supreme audit agency.

The Department of Finance will discuss the finding with the Supreme Audit Agency. "We will clarify about the issue in the first place because the finding was only a statement," she said on Tuesday, April 21.

The finding will help the government do precise correction. However, if the finding was due to negligence, power or other critical issues, then the recommendation will be put into consideration. 

Earlier, in a summary of auditing report that the Supreme Audit Agency submitted to the House of Representatives (DPR) on Tuesday, April 21, the production sharing contract of oil and gas recorded lack of revenues by US$1.3 billion due to weaknesses in the internal control system as well as disobedience against the law.

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Translated by: Bonardo Maulana Wahono