Two top executives from subsidiaries of Indonesia's state-owned oil and gas giant, Pertamina, have been arrested in connection with a massive corruption scandal. The Attorney General's Office (AGO) apprehended seven individuals, including executives from Pertamina's subsidiaries and the private sector, over a US$12 billion crude oil corruption case on Monday, February 24.
The scandal, which unfolded between 2018 and 2023, allegedly involved the illegal trade of crude oil, resulting in an estimated state loss of 193.7 trillion rupiah (approximately US$11.9 billion). The executives are accused of violating a government regulation mandating Pertamina to source crude oil from domestic suppliers. Authorities allege collusion among these executives to justify crude oil and fuel imports.
Among those named by the AGO are Riva Siahaan, the president director of Pertamina Patra Niaga, and Yoki Firnandi, the CEO of Pertamina International Shipping. Sani Dinar Saifuddin, a director at Kilang Pertamina Internasional, was also apprehended. They face accusations of marketing subsidized Pertalite gasoline under the more expensive Pertamax brand.
According to the AGO's director of corruption investigations, Abdul Qohar, the executives reportedly exported crude oil produced by contractors while importing crude oil and fuel at "significantly higher prices." This strategy allegedly involved falsely claiming that the Indonesian contractors' crude oil did not meet required specifications.
"Based on witness statements, expert opinions, and legally obtained documents, the investigation team has identified seven suspects," said Abdul Qohar.
Pertamina has declared its commitment to cooperating with prosecutors throughout the investigation process.
"Pertamina is committed to cooperating with law enforcement agencies to ensure due legal process while upholding the presumption of innocence," stated Fadjar Djoko Santoso.
The state's response to the scandal has been stern. President Prabowo Subianto has called for a tougher judicial stance on graft convicts. He emphasized that those found guilty of crimes causing significant state losses should face lengthy prison sentences.
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