Seminar Audit, Audit Environment

1. LAPINDO
BRANTAS,INC.
Thomson S Simbolon.

2. Profile Lapindo Brantas Inc.
Lapindo Brantas Inc. focuses on oil and gas exploration and production in Indonesia, operating under
a Production Sharing Contract with the Government of Indonesia in an area known as the Brantas
Block in East Java. The operating concession covers 3,042 km2 and includes 2 onshore and 3 offshore
sites.
As a result of ongoing exploration activities, Lapindo Brantas Inc. has discovered that its exploration
areas contain potentially high reserves, as in the Wunut gas field located in Porong in Sidoarjo
Regency. In January 1999, the Wunut Field was declared a commercial gas field and initial production
of natural gas was commenced. The Carat field in the Mojokerto Regency began its commercial
operation in 2006 followed by the Tanggulangin field in June 2008.
http://lapindo-brantas.co.id/about/profile/

3. Lapindo Brantas, Inc. currently employs a staff of 77 permanent and contract employees
and 142 personnel working for the company through a third party contract.
In addition to our continued efforts at capacity building for our staff, Lapindo Brantas has
also initiated a series of programs to support a consistent implementation of the
Competency-Based Human Resource (HR) Management System. The system is also in line
with Lapindo Brantas Inc’s initiative to improve HR and business strategies through the
constant development of the skills of our human resources.
As a means of strengthening and building the spirit, work ethic, motivation and
productivity of our staff, we constantly strive to improve the welfare of our employees by
providing, among other amenities, annual wage increases, based on performance ratings
generated from the online Performance Management System. Equal opportunity is of
significant importance to Lapindo Brantas Inc in creating a harmonious work atmosphere
and strong sense of teamwork.

4. Time Context
http://monicabaniwijaya.blogspot.com/2013/09/siapakah-yang-bertanggungjawab-atas.html

5. Opinion of the researchers :
1 There is a kick (overflow) in drilling.
2 Not had set casing at a certain depth.
3 At nearly equal, Jogja earthquake occurred which might lead effects
on the structure of rocks beneath the surface of the soil, which
indirectly affect the condition of drilling.
4 When kick appeared, no casing that can anticipate the flood of mud.
Then the mud across the slit of rock fractures, then emerged to the
surface, at a location 150 meters from the drilling.
5 Large debit mud flood flows, until the required special measures to
cover its spray.
6 When the anticipated measures used, namely by using the relief
well. But these techniques fail because of 3 well established for
injecting cement to plug the mud flow was submerged by mud boil
to the surface.
http://monicabaniwijaya.blogspot.com/2013/09/siapakah-yang-bertanggungjawab-atas.html

6. What was the Scandal ?
Corporate Crime
- Breaking ethics business and finally raises the
corporate crime cases
http://monicabaniwijaya.blogspot.com/2013/09/siapakah-yang-bertanggungjawab-atas.html

7. How did they do it?
Economic
Aspects
Lapindo Brantas Inc. is one of the Kontraktor Kontrak Kerja Sama
(KKKS) appointed BP-Oil and Gas to make the process of drilling for
oil and gas. Currently Lapindo has a 50% participating interest in the
area of the Brantas Block, East Java. In the case of this mud volcano,
Lapindo allegedly "intentionally save" operational costs by not
installing casing.
http://www.slideshare.net/ChandraWijaya1/studi-kasus-lumpur-lapindo

8. How did they do it?
Political Aspects
As the legality of the business (exploration or exploitation), Lapindo
has bagged the contract for the results of the business license /
production sharing contract (PSC) of the Government as the
authority of the ruler's sovereignty over natural resources. The
Indonesian government has long embraced the neoliberal economic
system in a variety of policies. As a result, the full potential of oil
and gas mining and natural resources (NR) "sold" to private /
individual (corporate based).
http://www.slideshare.net/ChandraWijaya1/studi-kasus-lumpur-lapindo

9. How did they do it?
Technical Aspects
At the beginning of the tragedy, Lapindo hiding behind tectonic
Yogyakarta earthquake that occurred on the same day. It is supported
by an opinion stating that trigger mud (liquefaction) is the earthquake
(cyclic sudden shock) Yogya damage resulting sediment.
http://www.slideshare.net/ChandraWijaya1/studi-kasus-lumpur-lapindo

10. Who is Suspect
East Java Police have named 13 suspects is :
1. Ir. Edi Sutriono as Drilling Manager PT. Energy Mega Persada, Tbk.
2. Ir. Nur Rochmat Sawolo, MESc as Vice President Drilling Share Services PT. Energy
Mega Persada, Tbk.
3. Ir. Rahenod as Drilling Supervisor PT. Medici Citra Nusa.
4. Slamet BK as Drilling Supervisor PT. Medici Citra Nusa.
5. Subie as Drilling Supervisor PT. Medici Citra Nusa.
6. Slamet riyanto as Project Manager PT. Medici Citra Nusa.
7. Yenny nawawi, SE as Dirut PT. Medici Citra Nusa.
8. Sulaiman Bin H.M. Ali as Rig Superintendent PT. Tiga Musim Mas Jaya.
9. Sardianto as Tool Pusher PT. Tiga Musim Mas Jaya.
10.Lilik Marsudi as Driller PT. Tiga Musim Mas Jaya.
11.Willem Hunila as Company Man Lapindo Brantas, Inc.
12.Ir. H. Imam Pria Agustino as General Manager Lapindo Brantas, Inc.
13.Ir. Aswan Pinayungan Siregar as former General Manager Lapindo Brantas, Inc.
http://www.slideshare.net/ChandraWijaya1/studi-kasus-lumpur-lapindo

11. What was their sanction/punishment
The government confirmed the ruling of the Constitutional Court
on a lawsuit Lapindo mudflow victims do not shift responsibility
from PT.Lapindo Brantas Inc. payment to the government.
Presidential Regulation No. 14/2007 on BPLS stated PT.Lapindo
Brantas Inc. must pay compensation to the victims trillion worth
Rp3,83 mud in the affected area map
http://m.menit.tv/welcome/read/2014/04/01/46871/0/1/Putusan-MK-Lapindo-Brantas-Harus-
Bayar-Ganti-Rugi

14. Moral Lesson
Bible Verse
Pengkhotbah 9:10 “Segala sesuatu yang
dijumpai tanganmu untuk dikerjakan,
kerjakanlah itu sekuat tenaga, karena tak ada
pekerjaan, pertimbangan, pengetahuan dan
hikmat dalam dunia orang mati, ke mana
engkau akan pergi”.