2025 Pertamina corruption case

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The 2025 Pertamina corruption case is an ongoing corruption case that involves Indonesian state-owned oil and natural gas corporation Pertamina in early 2025. The scandal involved the adulteration between subsidised petroleum with non subsidised petroleum. As of 2025, this is the largest corruption scandals in Indonesia, overtaking the PT Timah Tbk corruption scandal with the estimated total loss of Rp968,5 trilion (equivalent to US$58,94 billion). [1]

Contents

Background

Since 1960, Pertamina has been a sole player in Indonesian oil and gas market after the Provisional People's Consultative Assembly passed a policy that oil and gas exploration in Indonesia is only allowed to be carried out by the state until 2005 when the foreign oil and gas companies were allowed to operate in the country under strict conditions. In 1970s, Indonesia experienced an oil bonanza due to the 1970s energy crisis that caused the rising oil prices with Pertamina playing the key role in the boom. As the Indonesian oil sources started to gradually depletes, The government then allowed Pertamina to import its oil. [2]

Scandal

On 25 February, Indonesian Attorney General Office found seven individuals including five executives who worked at PT Pertamina Patra Niaga, a subsidiary of Pertamina of corruption. The scandal dated back from the period of oil imports between 2018 and 2023. [2] [3] The alleged misconduct, which occurred between 2018 and 2023, reportedly resulted in state losses amounting to Rp 193.7 trillion (US$11.9–12 billion). [4] [5]

Among the suspects arrested, there are Riva Siahaan, the CEO of PT Pertamina Patra Niaga; Yoki Firnandi, CEO of Pertamina International Shipping; and Sani Dinar Saifuddin, Director at Kilang Pertamina Internasional. The three were arrested after being found out to be breaching the regulation that requires Pertamina to prioritise locally refined oils instead of import. Among the private sector, businessman Muhammad Kerry Andrianto Riza was arrested for his involvement in the case. as a result of his arrest, Muhammad Kerry's father who was an oil baron Mohammad Riza Chalid's home in South Jakarta was raided by the prosecutors to investigate the case further. Additionally from private sectors, prosecutors arrested Dimas Werhaspati, Commissioner of PT Navigator Khatulistiwa and PT Jenggala Maritim; and Gading Ramadhan Joedo, Commissioner of PT Jenggala Maritim and PT Orbit Terminal Merak. [6] [7]

Pertamina products sold in the filling station SPBU Pertamina 2022.jpg
Pertamina products sold in the filling station

As the investigation runs further, it was found that Pertamina has been selling a supposed to be subsidised RON 90 Pertalite was adulterated with the higher quality RON 92 Pertamax. Heppy Wulansari, Corporate Secretary of Pertamina Patra Niaga denied the accusation and told the media such accusation doesn't have strong enough proof. [4]

After the scandal was made public. the Corruption Eradication Commission decided to call several figures that was once tied to Pertamina. On 10 March, the former CEO of Pertamina Nicke Widyawati was called by the Corruption Eradication Commission to testify as witness on the LNG procurement corruption scandal within Pertamina. The former Commissioner President of Pertamina Basuki Tjahaja Purnama would also be called for investigation. During his testimony, Basuki stated that he was not aware of the total amount of money being lost in the scandal. [8] [9]

Reactions

The corruption scandal has caused mixed reactions among the government circle and the public perception toward Pertamina. The scandal has tarnished Pertamina reputation nationwide.

Officials

During the press conference, The director of Pertamina, Simon Aloysius Mantiri openly made a public apology for the corruption and adulteration of Pertamax. Simon also stated that the corruption case is a harsh blow on Pertamina and appreciate the effort of law enforcement in solving the case and is willing to cooperate with the law if needed. [10]

Public

Shell filling station in Jakarta Hotel Maharani ^ Shell gas station. Mampang Prapatan. - panoramio.jpg
Shell filling station in Jakarta

After the news of the adulteration of Pertamax became public, many people has lost their faith in Pertamina business practices. As the public scrutiny mount, most of Indonesian consumers decided to boycott Pertamina oils and start favouring non-government filling stations such as Shell, BP, and Vivo has become preferable alternative choices among public. [11] According to Universitas Gadjah Mada law professor M. Fatahillah Akbar, consumers have the right to fill a class action lawsuit against Pertamina under criminal and civil rights law. [12]

References

  1. ↑ "Liga Korupsi Indonesia, Pertamina Kokoh Bertengger di Puncak Klasemen" [Indonesian Corruption League, Pertamina Perches Firmly at the Top of the Standings] (in Indonesian). Metro TV. 5 March 2025. Retrieved 13 March 2025.
  2. 1 2 Guild, James (11 March 2025). "The Scandal at Indonesia's State-Owned Energy Firm Pertamina, Explained". The Diplomat . Retrieved 13 March 2025.
  3. ↑ "Indonesia's Pertamina pledges to improve transparency following corruption allegations". Reuters. 3 March 2025. Retrieved 13 March 2025.
  4. 1 2 Bambang Ismoyo (25 February 2025). "Pertamina Vows Cooperation as Executives Named in $11.9B Corruption Scandal". Jakarta Globe.
  5. ↑ "Indonesian prosecutors arrest three Pertamina unit executives over oil imports". The Straits Times. 25 February 2025.
  6. ↑ Jihan Ristiyanti (25 February 2025). "AGO Uncovers Rp193.7 Trillion Loss in Pertamina's Crude Oil Corruption Case". Tempo.
  7. ↑ "Godfather of Gasoline, Riza Chalid". Tempo. 12 March 2025.
  8. ↑ "KPK periksa Nicke Widyawati terkait penyidikan korupsi pengadaan LNG" [KPK probes Nicke Widyawati in connection with LNG procurement corruption investigation] (in Indonesian). Antara News. 10 March 2025. Retrieved 13 March 2025.
  9. ↑ "Ahok Siap Bersaksi dalam Kasus Dugaan Korupsi di PT Pertamina" [Ahok Ready to Testify in Alleged Corruption Case at PT Pertamina] (in Indonesian). Kompas. 13 March 2025. Retrieved 13 March 2025.
  10. ↑ Dewi, Fransiska (3 March 2025). "Bos Pertamina Minta Maaf: Korupsi BBM Adalah Pukulan, Menyedihkan" [Pertamina Boss Apologizes: Fuel Corruption Is a Blow, Sad] (in Indonesian). Bloomberg. Retrieved 14 March 2025.
  11. ↑ "Shell Indonesia Akui Ada Lonjakan Permintaan BBM, Stok Aman?" [Shell Indonesia Admits There Is A Surge In Fuel Demand, Safe Stock?]. Bisnis. 7 March 2025. Retrieved 13 March 2025.
  12. ↑ Ade Ridwan Yandwiputra (26 February 2025). "Masyarakat Bisa Ikut Tuntut Ganti Rugi di Kasus Korupsi Pertamina". Tempo.
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