News - The corruption case involving PT Pertamina, Indonesia’s state-owned energy company, has shocked the public and raised serious concerns about corporate governance practices in the energy sector. In late February 2025, the Indonesian Attorney General’s Office announced the arrest of seven executives in connection with alleged corruption in oil imports, which caused state losses of $12 billion or approximately 193.7 trillion rupiah.
Case Details
An investigation that began in October 2024 revealed that between 2018 and 2023, Pertamina executives allegedly violated government regulations requiring the company to prioritize crude oil supplies from domestic suppliers. They reportedly conspired to reject domestic crude oil under the pretense that it did not meet specifications, despite it actually being suitable or refinable. The rejected domestic crude was then exported, while Pertamina imported oil at significantly higher prices to meet domestic demand.
Additionally, there were findings of price manipulation and a criminal conspiracy to control pricing. Pertamina International Shipping, Pertamina’s shipping subsidiary, allegedly inflated shipping costs by 13 to 15 percent, generating illegal profits from the transactions.
Arrests and Suspects
Among those arrested were Pertamina CEO Riva Siahaan, Pertamina International Shipping CEO Yoki Firnandi, and a director at Pertamina Refinery International, Sani Dinar Saifuddin. They are facing charges that could result in prison sentences of up to 20 years and fines of up to one billion rupiah if found guilty.
Pertamina’s Response
In response to the arrests, Pertamina stated that it is fully cooperating with authorities and respects the ongoing legal process. The company emphasized the importance of the presumption of innocence for the executives involved until a final court ruling is made.
Impact and Public Reaction
This corruption case adds to the long list of scandals involving Indonesia’s state-owned enterprises. In 2023, a former Minister of Communications was sentenced to 15 years in prison after being found guilty in a corruption case that cost the state over $500 million.
The public and various organizations are urging the government to strengthen oversight and transparency in state-owned enterprises to prevent similar cases in the future. This case also highlights the need for reform in corporate management and governance within Indonesia’s energy sector.
Future Prevention Efforts
To prevent similar corruption cases, the government and state-owned companies like Pertamina should implement the following measures:
- Strengthening Internal Oversight – Enhancing internal audit systems and ensuring effective monitoring mechanisms for all transactions and managerial decisions.
- Operational Transparency – Providing public access to information regarding company policies, procurement processes, and operations.
- Adopting Monitoring Technology – Implementing advanced technology to track workflows and transactions, allowing early detection of potential fraud.
- Ethics Education and Training – Conducting regular training for employees on work ethics and the legal implications of corruption.
- Collaboration with Law Enforcement – Actively working with law enforcement agencies to identify and prosecute legal violations within the company.
By implementing these measures, it is hoped that a culture of integrity can be fostered, preventing corruption in the future, especially in the vital energy sector, which plays a strategic role in the national economy.