Indonesia's Supreme Audit Agency (BPK) has suggested that there will be losses to the state amounting to $306m from the contract extension state-owned port operator Pelindo II gave to its partner Hutchison Port Holdings for the Jakarta International Container Terminal (JICT), local reports said.

The agency audited the deal following a request from a House of Representatives inquiry committee into irregularities surrounding a contract extension for the management and operation of JICT.

“Based on the investigation, the BPK concluded that there were numerous indications of violations and irregularities surrounding the contract extension, which was signed on Aug. 5, 2014,” BPK head Moeharmadi Soerja Djanegara was quoted as saying.

“It was found that the contract extension was not in the business plan and did not obtain approval during an RUPST [annual shareholders meeting]. Suddenly it was decided to extend the contract from 2015 to 2039,” she said, adding that the contract between Pelindo II and HPH should have expired in 2019.

“Had no contract extension been made until 2019, JICT would be 100% owned by Indonesia,” she added.

HPH declined to comment when contacted by Seatrade Maritime News.

Source:seatrade-maritime.com