PPATK Examines Pandora Papers Leak Incriminating 2 State Officials

TEMPO.CO, Jakarta - The Financial Transaction Reports and Analysis Center (PPATK) Chief Dian Ediana Rae on Monday said the agency is currently looking into the Pandora Papers. It is a report with the largest leak of offshore financial data on secret deals and hidden assets of some of the world’s richest and most powerful people, including a number of Indonesian State Officials. 

“We are examining it,” said Dian to Tempo on October 4. 

The Indonesians incriminated in the report are Maritime Affairs and Investments Coordinating Minister Luhut Pandjaitan and Economic Affairs Coordinating Minister Airlangga Hartarto.

As in previous cases, the PPATK will analyze the report and compare it with their own database. Dian said the agency has already established a cooperation framework to exchange information along with a cooperation with the Finance Ministry’s directorate general of taxation.

“If based on the pairing, there are strong indications that the people have acted against the law or their financial profile does not correspond to their tax obligations, then the PPATK will provide the authorized agency with the result of our analysis,” said Dian. 

A document in the Pandora Papers Tempo looked into suggestes Airlangga established offshore shell companies as an investment vessel in handling trust funds and insurances located at the tax haven British Virgin Islands under companies branded Buckley Development Corporation and Smart Property Holdings Limited.

In an exclusive interview with Tempo on August 31, Airlangga claimed he was unaware of the two companies and denied accusations that he intended to withdraw insurance policy through the two companies. “There are no such transactions,” said the Minister. 

Another State Official mentioned in the Pandora Papers is Luhut Pandjaitan, who according to a meeting minutes Tempo observed,  the minister attended a director’s meeting of a company called Petrocapital SA that is listed in the Republic of Panama. Luhut was seemingly present more than once in the series of meetings throughout 2007 until 2010. 

Records showed that Luhut was first appointed as Petrocapital president director in a meeting held on March 19, 2007, along with two other people based in Ecuador. The meeting also approved the changes to the company name from Petrostar International SA into Petrostar-Pertamina International SA.

The 17-page document mentions the company being tasked to produce and transport petroleum products and conduct exports and imports despite having only been established three years prior. Board members decided to disband the company in a special shareholders meeting in July 2010.

Spokesperson for Luhut, Jodi Mahardi, confirmed that the Petrocapital was formed in the Republic of Panama and that the company was established to develop overseas business, mainly in Central America and South America. 

Mahardi insisted Luhut Pandjaitan only held executive position at Petrocapital for three years since 2007 and said the company failed to obtain proper oil and gas exploration projects. He denied allegations incriminating Luhut and an Indonesian oil company in attempts to change the company name. 

Read: Airlangga, Luhut Responds to Pandora Papers Report

CAESAR AKBAR | LARISSA HUDA | TEMPO MAGAZINE