Indonesia Arrests 7 Top Executives In $12 Billion Oil Corruption Case

Indonesia’s Attorney General’s Office has revealed details of a major corruption case involving state-owned oil company Pertamina, which allegedly caused financial losses of $11.85 billion (193.7 trillion rupiah) to the state.

The scheme ran for at least five years, from 2018 to 2023. Authorities arrested seven executives on Monday night, February 24, including top officials from Pertamina and its subsidiaries.

Among those detained are: the CEO of Pertamina, Riva Siahaan; CEO of Pertamina International Shipping, Yooki Firnandi; and a director at Kilang Pertamina Internasional, Sani Dinar Saifuddin.

Prosecutors also arrested executives from private companies and a terminal operator. If convicted, they could face up to 20 years in prison and fines of one billion rupiah (approximately $61,000) each.

The Attorney General’s Office accuses the executives of rejecting domestically produced crude oil, falsely claiming it did not meet required specifications, despite evidence showing otherwise.

As a result, domestic oil was exported instead of being used, while crude oil and fuel were imported at inflated prices. This violated Indonesian regulations that require Pertamina to prioritise local supply before importing oil for domestic needs.

Investigators also found price manipulation in shipping contracts. They allege Pertamina International Shipping imposed a markup of 13-15% on fees, generating illegal profits from these transactions.

Authorities launched the investigation in October 2024, gathering evidence through interviews with 96 witnesses and experts and conducting extensive document reviews.

Based on their findings, prosecutors believe the accused were part of a scheme that intentionally undermined domestic refinery capacity to justify oil imports at higher costs.

The charges indicate that crude oil produced within Indonesia was labelled as substandard and exported, while lower-quality imported oil was blended in storage tanks before being used domestically.

Pertamina issued a statement on Tuesday acknowledging the legal proceedings and expressing its willingness to cooperate with authorities. The company emphasised the importance of maintaining the “presumption of innocence” during the investigation.

Reference: Reuters, Malaymail

Source: Maritime Shipping News