CEO: Pertamina ready for fuel quality testing, domestic oil processing
CEO of PT Pertamina has reaffirmed the State energy company’s commitment to ensuring fuel quality and transparency in testing processes, signalling readiness for third-party investigation to regain public trust after a recent finding by the Attorney General’s Office (AGO) of a corruption scandal involving top management within the Pertamina Group.
“We welcome the idea of involving third-party institutions in fuel quality testing. Having an external party conduct tests according to widely accepted standards will enhance transparency and restore public confidence. This is a matter of national importance, directly affecting the lives of Indonesian people,” Pertamina CEO Simon Aloysius Mantiri said on Monday, March 3, 2025.
Pertamina also addressed the government's directive to process locally produced crude oil at domestic refineries, reducing crude oil exports.
Deputy CEO Wiko Migantara highlighted that Pertamina is implementing this policy to maximize domestic oil utilization.
“This policy, primarily driven by the new administration, aims to prioritize domestic crude oil processing. Naturally, this means that exports will be reduced or even eliminated, as we are utilizing the oil within the country,” Migantara said.
He further elaborated on the progress of negotiations with non-Pertamina contractors who still export crude oil.
“We still have ongoing negotiations with non-Pertamina contractors who are selling their crude oil overseas. With the government’s backing, we hope to reach commercial agreements to process this oil in our refineries,” he said.
Mantiri maintained Pertamina’s dominance in the Indonesian gasoline sector.
“Pertamina serves fuel needs from Sabang to Merauke, maintaining a market share of approximately 95-96 percent in the gasoline sector,” he said.
He reaffirmed Pertamina’s commitment to quality control, inviting media representatives to observe the fuel testing process.
“We are open to media participation in observing our quality control processes, from terminals to fuel stations. We hope this will provide clear and transparent information on how we ensure fuel quality and reliability,” he cited.
As previously reported, the AGO has named nine individuals − six 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.
AGO Spokesman, Harli Siregar, said earlier that the Office’s investigation found strong evidence of systematic corruption involving high-ranking officials within Pertamina, as well as the private sector, which had resulted in State losses of approximately Rp 193.7 trillion (US$12.5 billion).
"This case involves a deliberate scheme to manipulate domestic oil supply and import processes for illegal financial gains," Harli Siregar said on February 25, 2025.
According to prosecutors, the key Pertamina officials manipulated refinery production levels to justify crude oil imports at inflated prices, bypassing domestic supply obligations. This fraudulent practice was allegedly conducted in collaboration with brokers, who secured pre-arranged procurement contracts at premium rates.
The suspects are being charged under Law No. 31/1999 on Corruption Eradication, which carries a maximum penalty of life imprisonment.
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