Indonesia arrests top executives of Pertamina over USD 12 bil corruption scandal

Editor’s note: Title of article has been corrected to USD 12 billion. 

Indonesia’s Attorney General’s Office (AGO) has arrested three executives at units of state-owned oil and gas giant Pertamina in connection with a IDR 193.7 trillion (USD 12 billion) crude oil corruption scandal, according to several media reports on Tuesday (25 February). 

Riva Siahaan, president director of Pertamina Patra Niaga and Yoki Firnandi, chief executive officer of Pertamina International Shipping, were among seven people accused of an illegal scheme to market subsidised Pertalite gasoline under the more expensive Pertamax brand. 

Citing an AGO’s statement, Jakarta Globe reported that during Riva’s tenure, Pertamina Patra Niaga allegedly blended subsidised Pertalite gasoline with Pertamax, which has a higher octane number and is sold at a non-subsidised price between 2018 and 2023.

The names of the other five were undisclosed and were named using only initials and their positions in the report. However, Reuters reported the identity of a third suspect which was Sani Dinar Saifuddin, a director at Kilang Pertamina Internasional.

Jakarta Globe reported Pertamina spokesman Fadjar Djoko Santoso confirming that the company will fully cooperate with prosecutors during the investigation.

“Pertamina is committed to cooperating with law enforcement agencies to ensure due legal process while upholding the presumption of innocence,” Fadjar said in a statement.

A day later, Jakarta Globe reported Pertamina Patra Niaga denying allegations that it mixed cheaper, subsidised Pertalite with Pertamax. 

Acting CEO Mars Ega Legowo, following Riva’s arrest, insisted Pertamex is not a blended product and that Pertamina does not have a dedicated blending facility for gasoline. Instead, he said the company adds an additive to raise its octane number, which he explained “other companies do the same”. 

Photo credit: Pertamina
Published: 27 February, 2025