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Global Contagion Report — Chevron Indonesia

Country: Indonesia

Individual: Bachtiar Abdul Fatah

Company Involved: Chevron

Industry: Oil and Gas

Enforcement Action: Conviction and Sentencing

Summary: Bachtiar Abdul Fatah, a former general manager at Chevron’s Indonesian subsidiary, was sentenced to two years in prison last week for abuse of power. The court said Chevron wrongfully staged a project to clean up 28 plots of land that was never contaminated with oil in the first place. The court said the rigged project caused state losses of more than US$220,000.

Three other Chevron employees were jailed for two years in July in connection with the same case.

Chevron, Indonesia’s biggest crude oil producer, has denied all accusations and said the clean-up was given full and proper government approval before it began.

Foreign investors and energy companies are concerned about the case. Most disputes in Indonesia involving multinationals are resolved out of court. Investors also say they have to contend with multiple layers or fast-changing industry regulations and legal uncertainty.

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