JAKARTA (Bloomberg) ? Indonesia?s Supreme Court upheld a ruling that Frontline Ltd. colluded with officials at the state oil company and Goldman Sachs Group Inc. to buy two supertankers for below-market prices in 2004.

Pertamina hired Goldman in 2004 to help it sell the two tankers. Frontline, controlled by Norwegian billionaire John Fredriksen, bought the two ships for $184 million. The Supreme Court upheld the agency?s allegation that the ships were worth $240 million, court spokesman Joko Upoyo said by telephone.

Goldman Sachs, now liable to pay a $2 million fine, won the mandate to sell the ships at a time when tanker values were rising because of global demand for oil transport. Buying and selling ships is typically arranged by shipbroking groups including London-based shipbroker Clarkson Plc.

?We were very shocked to hear about the Supreme Court decision through the media but it?s premature to comment as we haven?t seen the formal ruling,? Todung Mulya Lubis, a lawyer for Goldman Sachs, said by telephone in Jakarta. Goldman Sachs didn?t do anything wrong in the sale, he said.

The two tankers, each able to carry 2 million barrels of crude oil, were built at South Korea?s Hyundai Heavy Industries Co., the world?s biggest shipbuilder.

The anti-monopoly agency in March ordered Goldman Sachs, the financial adviser for the sale, to pay a fine of 19.7 billion rupiah ($2 million) and compensation of 60 billion rupiah. Frontline was ordered to pay a fine of 25 billion rupiah and compensation of 120 billion rupiah.

?We have not seen a formal ruling yet,? Frontline?s chief financial officer Tom Jebsen said. ?If this in fact is the verdict, we will have to see if there are any possibilities for an appeal. If not, we will have to take note of the ruling. We feel it?s unfair as we have been implicated in something we had no influence over.?

State oil company, PT Pertamina, sold the two tankers for $184 million to Frontline in June, 2004, based on advice from Goldman Sachs.

The agency ruled in March, 2005 that the market price of the ships when they were sold was as much as $240 million.

?The sale was done as transparently as possible and the process had been approved by Pertamina as a client,? Goldman Sachs?s lawyer Lubis said.

Edward Naylor, Goldman?s spokesman in Hong Kong, declined to comment.

Pertamina and Frontline also denied the accusation and challenged the decision. The Central Jakarta District Court in May dismissed the anti-monopoly agency?s ruling and defended the sale, prompting the agency to appeal to the Supreme Court.

Pertamina?s lawyer Juniver Girsang confirmed the ruling, declining to comment further.