Indonesia AGO names nine suspects in Pertamina graft probe

Indonesia AGO names nine suspects in Pertamina graft probe

The Attorney General’s Office (AGO) of Indonesia has announced the addition of nine new suspects in its ongoing investigation into the corruption and mismanagement of crude oil and refined fuel trading at state energy company PT Pertamina and its subsidiaries. The investigation, which spans from 2018 to 2023, has revealed a web of irregularities and potential financial losses to the state and national economy [1].

The nine suspects include former senior executives of Pertamina, corporate partners, and a controversial businessman known for his influence in Indonesia’s energy sector, Muhammad Riza Chalid (MRC). The AGO’s Director of Special Crimes Investigations, Abdul Qohar, stated that the decision to name these individuals as suspects was based on months of intensive investigation and the discovery of sufficient evidence [1].

The list of suspects and their alleged roles includes:
1. Alfian Nasution (AN) – Former VP of Supply and Distribution at Pertamina and later CEO of PT Pertamina Patra Niaga, accused of overpriced fuel terminal leases and manipulated compensation for subsidized fuel.
2. Hanung Budya (HB) – Former Marketing and Trading Director at Pertamina, accused of approving unlawful direct appointments and inflated contracts related to storage facilities.
3. Toto Nugroho (TN) – Former SVP of Integrated Supply Chain at Pertamina, currently CEO of Indonesia Battery Corporation, accused of approving import contracts with disqualified foreign suppliers.
4. Dwi Sudarsono (DS) – VP of Crude and Product Trading at Pertamina, suspected of orchestrating unnecessary crude exports while importing similar oil at higher prices.
5. Arif Sukmara (AS) – Director at Pertamina International Shipping, allegedly involved in inflating vessel charter costs and manipulating bidding to favor specific companies.
6. Hasto Wibowo (HW) – Former SVP of Integrated Supply Chain at Pertamina, accused of illegally awarding contracts to Trafigura Asia Trading without competitive bidding and selling diesel below base price to private and state companies.
7. Martin Haendra Nata (MH) – Former executive at Trafigura Pte Ltd, accused of conspiring with Pertamina officials to secure contracts through backdoor deals.
8. Indra Putra (IP) – Business Development Manager at PT Mahameru Kencana Abadi, allegedly coordinated oil transport deals with inflated costs.
9. Muhammad Riza Chalid (MRC) – Beneficial owner of PT Tangki Merak and PT Orbit Terminal Merak, accused of conspiring with Pertamina executives to secure illegal lease agreements for fuel terminals with inflated pricing and loss of state ownership rights [1].

The probe has highlighted multiple irregularities, including the export of domestic crude oil despite domestic refining capacity, inflated compensation for Pertalite fuel subsidies, leasing deals for terminal and shipping services awarded without public tender, and preferential treatment to non-qualified international suppliers [1]. These acts are alleged to have violated Articles 2 and 3 of Indonesia’s Corruption Law and Article 55 of the Criminal Code, which governs collective responsibility in criminal acts [1].

The AGO has yet to disclose detailed charges or the estimated value of the losses incurred, but sources close to the investigation suggest that the financial impact could reach into the trillions of rupiah. The scandal has placed greater pressure on the government to enhance transparency and reform procurement practices in the oil and gas industry, which has long been seen as opaque and vulnerable to elite manipulation [1].

The AGO’s announcement of these new suspects adds to the ongoing investigation, which has already resulted in 18 suspects being named. Further steps, including asset seizure and financial audits, are expected in the coming weeks as investigators seek to calculate the total losses [1].

References:
[1] https://indonesiabusinesspost.com/4718/financial-crimes/gasoline-godfather-among-nine-new-suspects-in-pertamina-oil-trading-graft
[2] https://indonesiabusinesspost.com/4717/financial-crimes/nine-more-suspects-named-in-pertamina-oil-trade-scandal-including-riza-chalid