The alleged corruption case in PT Pertamina’s oil operations poses a formidable challenge for the Attorney General’s Office (AGO) to thoroughly uncover its roots. It also tests the resolve of the Prabowo-Gibran administration to reform Indonesia’s oil and gas sector.

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The AGO’s investigation into alleged corruption in PT Pertamina’s oil operations is progressing. On April 15, 2025, the AGO announced that six individuals were questioned as witnesses to deepen the probe. These include the President Director of PT Perusahaan Perdagangan Indonesia (PPI) Persero, the Manager of Market Research & Data Analysis at PT Kilang Pertamina Internasional (KPI), the General Managers of KPI’s Balikpapan, Balongan, and Cilacap Refinery Units, and the Vice President of Process and Facility at KPI. Their testimonies aim to strengthen evidence and complete case documentation.

Previously, the AGO named nine suspects in the alleged corruption case involving the governance of crude oil and refinery products at PT Pertamina, its subsidiaries, and related partners between 2018 and 2023. The suspects include:

  • Riva Siahaan (RS), President Director of PT Pertamina Patra Niaga (PPN);
  • Sani Dinar Saifuddin (SDS), Director of Feedstock & Product Optimization at KPI;
  • Yoki Firnandi (YK), Director of PT Pertamina International Shipping (PIS);
  • Agus Purwono (AP), Vice President of Feedstock Management at KPI;
  • Muhammad Kerry Adrianto Riza (MKAR), Beneficial Owner of PT Navigator Khatulistiwa;
  • Dimas Werhaspati (DW), Commissioner of PT Navigator Khatulistiwa and PT Jenggala Maritim;
  • Gading Ramadan Joede (GRJ), Commissioner of PT Jenggala Maritim and President Director of PT Orbit Terminal Merak;
  • Maya Kusmaya (MK), Director of Central Marketing and Commerce at PPN;
  • Edward Corne (EC), Vice President of Trading Operations at PPN.

The AGO revealed that the modus operandi involved manipulating decisions during Downstream Optimization Meetings to favor imported crude oil and refinery products over domestically produced oil.

Procurement contracts were rigged to benefit selected oil brokers, with markups of 13–15% added to contracts. Additionally, import prices were inflated through collusion, and imported oil with a RON 90 rating was processed in depots to achieve a RON 92 rating. These practices drove up consumer fuel prices, forcing the government to increase subsidies via the state budget.

The AGO estimates state losses at Rp 193.7 trillion, including:

  • Rp 135 trillion from domestic crude oil exports;
  • Rp 2.7 trillion from crude oil imports via brokers;
  • Rp 9 trillion from fuel imports via brokers;
  • Rp 126 trillion from fuel compensation payments in 2023;
  • Rp 21 trillion from subsidies in 2023.

Public pressure is mounting for the AGO to investigate this case to its core, clarifying the flow of funds from alleged markups and potential kickbacks. A corruption scandal of this magnitude demands transparency on where the funds went.

This case must catalyze comprehensive reforms in Indonesia’s oil and gas governance, including its commercial framework, to prevent future abuses.

The Persistent Challenge of Combating the Oil and Gas Mafia

The AGO’s uncovering of this case exposes the persistent corruption entangling Indonesia’s oil and gas sector, often referred to as the “oil and gas mafia.” Despite recurring political promises in the 2014 and 2019 elections to eradicate this mafia, meaningful progress has been elusive.

Efforts to combat corruption included the dissolution of Pertamina Energy Trading Limited (Petral), a PT Pertamina subsidiary, under President Joko Widodo’s instruction. While Petral’s closure sparked optimism, it failed to deliver significant governance improvements. Sudirman Said, former Minister of Energy and Mineral Resources during Petral’s dissolution, admitted that the effort was incomplete, with no comprehensive reforms to Petral’s scope of work or PT Pertamina’s internal controls.

The exposure of this case highlights ongoing weaknesses in PT Pertamina’s governance, despite prior reform attempts, such as the establishment of the Oil and Gas Governance Reform Team early in Jokowi’s administration. Dominant players in oil procurement during Petral’s dissolution hindered fundamental improvements, perpetuating unfair business practices that stifle competition.
This case must serve as a turning point for strengthening governance in the oil and gas sector, particularly at Pertamina. The mafia’s influence underscores the need for robust law enforcement by the AGO and strong political commitment from the Prabowo-Gibran administration.

Skepticism Surrounding State Loss Figures

The announcement of Rp 193.7 trillion in state losses sparked controversy, with questions about the AGO’s methodology. Notably, the calculation of state losses should involve the Supreme Audit Agency (BPK), which holds constitutional authority to determine such losses under Supreme Court Circular (SEMA) No. 4 of 2016. The AGO’s failure to clarify BPK’s involvement raises doubts about the credibility of the reported figure.

Proving state losses is a matter for court proceedings, where the BPK’s expertise ensures legal substantiation. The court’s verdict will ultimately test the quality of the AGO’s investigation.

A Moment for Reform and Asta Cita

Despite skepticism about the loss figures, this case offers a critical opportunity for the government and Pertamina to overhaul governance. It challenges the AGO to conduct a thorough investigation and the Prabowo-Gibran administration to deliver on its reform agenda.

Improving oil and gas governance is a cornerstone of Prabowo-Gibran’s Asta Cita vision, particularly their goal of energy self-sufficiency. Reforming governance aligns with Article 33 of the 1945 Constitution, which mandates state control over natural resources for public welfare. Additionally, their anti-corruption agenda prioritizes strengthening institutions like the Corruption Eradication Commission (KPK), police, prosecutors, and judiciary, with a focus on sectors critical to public welfare, including natural resources.

The government’s commitment to law enforcement and governance reform through this case will reflect Prabowo-Gibran’s dedication to their Asta Cita vision. Concrete steps are urgently needed to restore public trust and ensure a corruption-free oil and gas sector.

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Published also on Indonesiana.id