Indonesian prosecutors arrest three Pertamina unit executives over oil imports

Indonesia’s Attorney General’s Office 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 $12 billion, a senior official said.

Late on Monday, prosecutors arrested Riva Siahaan, CEO of Pertamina Patra Niaga, Yoki Firnandi, CEO of Pertamina International Shipping, and Sani Dinar Saifuddin, a director at Kilang Pertamina Internasional, Abdul Qohar, director of special crimes at the Attorney General’s office, told reporters.

Pertamina said in a statement on Tuesday that it respected the ongoing legal process by Attorney General’s Office.

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

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

“But the fact was the specification matched,” 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 ($12 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 Attorney General’s 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.