An economist with Gadjah Mada University, Fahmi Radhi, asks the government to impose strict punishment and conduct a major cleanup within PT Pertamina to prevent future misconduct after the latest corruption scandal in the State energy company, resulting in State losses of approximately US$12.5 billion (Rp193.7 trillion).
Fahmi stresses that President Prabowo Subianto must take direct action to dismantle the deeply entrenched oil and gas mafia, which allegedly involves corrupt figures within Pertamina, the government, the parliament, and law enforcement.
“Without direct presidential intervention, eliminating these powerful networks will be impossible,” he said as quoted in a statement on Tuesday, February 25, 2025.
This case highlights serious structural issues within Indonesia’s energy sector. While the arrest is considered as a significant step forward, experts believe that true reform requires strong political will, law enforcement, and stricter regulations to prevent further exploitation.
“This corruption scandal is not just robbing state funds but also deceiving consumers. People pay for premium fuel, but receive lower-grade products in return. If law enforcement fails to act decisively, this will continue to happen,” Fahmi warned.
The Attorney General's Office (AGO) has named seven individuals − four are top officials within PT Pertamina Group and the other three are business partners − as suspects in a corruption case related to mismanagement of crude oil and refinery products at the State energy company, its subholdings and contractors during the 2018-2023 period. The scandal involves fraudulent crude oil imports, fuel blending manipulation, and inflated shipping contracts.
The suspects are Riva Siahaan, President Director of Pertamina’s commercial and trading subholding company PT Pertamina Patra Niaga; Sani Dinar Saifuddin, Director of Feedstock and Product Optimization at Pertamina’s refinery and petrochemical arm PT Kilang Pertamina Internasional; Yoko Firnandi, President Director of Pertamina’s shipping subholding PT Pertamina International Shipping; Agus Purwono, Vice President of Feedstock Management at PT Kilang Pertamina Internasional; Muhammad Kerry Andrianto Riza, Beneficial Owner of PT Navigator Khatulistiwa; Dimas Werhaspati, Commissioner at PT Navigator Khatulistiwa and PT Jenggala Maritim; and Gading Ramadhan Joedo, Commissioner at PT Jenggala Maritim and President Director of PT Orbit Terminal Merak.
The corruption scheme involved:
- Marking up crude oil imports – Domestic crude oil was deliberately rejected, forcing Pertamina to import oil at inflated prices, causing massive financial losses.
- Fuel blending fraud – Lower-quality fuel Pertalite (RON 90) was disguised and sold as Pertamax (RON 92), deceiving consumers.
- Shipping contract fraud – Illegal surcharges of 13 percent to 15 percent were applied to fuel transportation costs.
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