Indonesian prosecutors arrest three Pertamina unit executives over oil imports

JAKARTA - Indonesia’s Attorney-General’s Office (AGO) has arrested three executives at units of state-owned energy firm Pertamina on charges of alleged corruption related to oil imports that cost the state US$12 billion (S$16 billion), a senior official said.

Late on Feb 24, prosecutors arrested Mr Riva Siahaan, chief executive officer (CEO) of Pertamina Patra Niaga, Mr Yoki Firnandi, CEO of Pertamina International Shipping, and Mr Sani Dinar Saifuddin, a director at Kilang Pertamina Internasional, the director of special crimes at the AGO, Mr Abdul Qohar, told reporters.

Pertamina said in a statement on Feb 25 that it respected the ongoing legal process by the AGO.

“Pertamina is ready to cooperate with the authorities and hopes the legal process runs well and prioritises the presumption of innocence,” it added.

Mr Abdul said that between 2018 and 2023, the three were alleged to have violated a government regulation for Pertamina to source crude oil from domestic suppliers, and had colluded to justify crude oil and fuel imports.

He added that the executives had said the crude oil from contractors operating in Indonesia did not meet their standards.

“But the fact was the specification matched,” Mr Abdul said.

Crude oil produced by contractors was exported, while Kilang Pertamina Internasional and Pertamina Patra Niaga imported crude oil and fuel with “significantly higher prices”, the prosecutor said, with losses to the state put at 193.7 trillion rupiah (S$15.8 billion).

Pertamina Patra Niaga is a unit in charge of retail sales and fuel imports at the state energy firm. Kilang Pertamina International processes crude oil and condensate into refined products.

The AGO office said Pertamina International Shipping had marked up shipping fees.

Three other people from private companies were also arrested in the case, the office said. REUTERS