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Making Chevron Pay

Tuesday, February 25, 2014

The KPPU ordered Chevron to pay at Rp2.5 billion fine for discriminatory procurement practices. After the energy giant won an appeal last September, the case appears headed for the Supreme Court.

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The Gendalo-Gehem gas project, Indonesia's first deepwater endeavor, has gotten expensive. If upstream oil and gas regulator SKK Migas approves the investment, whose price has shot up since it was first initiated several years ago, the project would cost US$12 billion (Rp141 trillion). Unsurprisingly, the Business Competition Supervisory Commission (KPPU) has put the project bidding under its spotlight.

The investigation began in April 2011. Four

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