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BPK to Audit Merpati
Camelia Pasandaran | June 01, 2011

A crowd gathering around the debris of crashed Merpati MA-60 plane in Kaimana District, West Papua, earlier this month. Following a recent audit of MA-60s owned by Merpati Nusantara Airlines after the crash, the Transportation Ministry demanded on Monday that the airline be more prudent in enforcing safety rules. (Antara Photo) A crowd gathering around the debris of crashed Merpati MA-60 plane in Kaimana District, West Papua, earlier this month. Following a recent audit of MA-60s owned by Merpati Nusantara Airlines after the crash, the Transportation Ministry demanded on Monday that the airline be more prudent in enforcing safety rules. (Antara Photo)
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bobolaba
10:13pm Jun 1, 2011

That's how it works when you deal with them... you get crap and you think it's cheap... it's better to think first. Selamat datang di Indonesia

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The Supreme Audit Agency said on Wednesday that it had been preparing to audit Merpati Nusantara Airlines after one of its planes crashed in Kaimana Bay, Papua, on May 7, killing 25.

“We want to inform the government that as follow-up to the cases at PT Merpati, PT Elnusa and banking practices, BPK is now preparing further steps to investigate the cases,” Hadi Purnomo head of Supreme Audit Agency (BPK) said at the Presidential Palace after reporting the results of the central government's financial audit on Wednesday.

In response, President Susilo Bambang Yudhoyono said that he agreed with the plan to investigate and audit the company for the sake of public transparency.

“We should not let suspicion lead to another suspicion and keep ongoing,” Yudhoyono said. “Moreover, it is being topped up with the statements by irresponsible parties that make things unclear. Please check whether there was corruption or violation in the case.”

The accident has put the government's involvement in the purchase of 15 MA-60 aircrafts from Chinese company Xian in the spotlight. Merpati had tried to renegotiate the contract after finding a crack in the tail of the first plane sent to Indonesia and discovering that the price had been set at higher than the standard.

Efforts to renegotiate the contract led the Chinese government to halt funding for the 10,000 MW state electricity project.

Indonesian Trade Minister Mari Elka Pangestu was reportedly assigned to deal with the Chinese government in dealing with the issue. The purchase  continued with some adjustments.

“We’re tired of dealing with the 'political drama' that has come before the real audit and investigation,” Yudhoyono said. “The government is now reviewing the contracts one by one, whether the business or economic contracts, including investments from closely related countries, were really just and logical.”

He said that he could not blame the past, admitting that Indonesia needed investment in the industry.

“Probably our bargaining position was not too strong so the contract was agreed,” Yudhoyono said. “But whenever the contract violates justice and is not logical, there should be a door for renegotiation.”

He said efforts for renegotiation should be carefully carried out to avoid retaliation.

“Now and in the future, we want to ensure that all [contracts] are carried out logically, smoothly and justly, and bring benefit,” he said. “I want all of us to understand that if there has been injustice in the past, we should not repeat it again.”

He also called for state-owned enterprises and private companies to invest and join in the development, with the possibility of establishing foreign partnerships.