State-Owned Enterprises (SOEs) play a crucial role in Indonesia’s economy, but several corruption scandals involving SOEs’ executives, including Pertamina, have exposed abuse of power that has cost the country billions.
These cases highlight the ongoing challenges in ensuring transparency and accountability in state-owned companies.
Pertamina, one of the largest state-owned enterprises in the country, has been at the center of scrutiny following the involvement of several former top executives in major corruption cases.
One of the most notable is a case involving the procurement of liquefied natural gas (LNG), which resulted in a loss to the state of over Rp1.7 trillion (US$113.84 million).
1. Karen Agustiawan
Karen Agustiawan, President Director of Pertamina from 2009 to 2014, was sentenced to nine years in prison in June 2024 by the Jakarta Corruption Court. She was found guilty of corruption in the procurement of LNG, which caused the country a loss of US$113.84 million. This ruling was upheld by the Jakarta High Court in August 2024, despite some changes in the evidence presented.
The court also ruled that Karen would not be required to pay restitution, as this obligation was transferred to the U.S.-based company, Corpus Christi Liquefaction LLC, which should not have benefited from the LNG procurement.
2. Yenni Andayani
Yenni Andayani, who served as the Acting President Director of Pertamina and Director of Gas from 2014 to 2018, is currently under investigation by the Corruption Eradication Commission (KPK) in connection with the same LNG corruption case.
Yenni, who had the authority to sign LNG sales agreements, is suspected of being involved in decisions that caused significant losses to the company and the state. While no official verdict has been issued against her yet, her status as a witness indicates that she remains under the KPK’s scrutiny.
3. Hari Karyuliarto
Hari Karyuliarto, the former Corporate Secretary of Pertamina from 2011 to 2012, and later Director of Gas, is also implicated in the LNG corruption case alongside Karen Agustiawan and Yenni Andayani.
Hari was part of the team that oversaw the procurement of LNG, and his involvement suggests significant issues with internal oversight within the company.
4. Luhur Budi Djatmiko
Luhur Budi Djatmiko,Pertamina Director of General Affairs from 2012 to 2014, has been implicated in a corruption case involving the purchase of land in South Jakarta. The KPK investigation revealed that the land purchase caused the state a loss of Rp348 billion.
Luhur’s case is still under investigation, but the total estimated loss from the various corruption scandals is expected to reach Rp1.9 trillion (equivalent to the budget for a free private school program in Jakarta).
The corruption cases involving former Pertamina executives underscore the urgent need for reforms in the management of BUMNs, particularly in strengthening accountability and oversight mechanisms.
These scandals highlight the importance of maintaining the integrity of state-owned companies, which play a key role in the national economy.
As legal proceedings continue, there is growing public demand for increased transparency and stronger measures to prevent corruption in SOEs.
Moving forward, it is hoped that such incidents will serve as a wake-up call for improving governance and ensuring that state-owned companies operate with greater integrity and accountability.
