Former Energy Official Questioned in Pertamina Corruption Probe

Table of Contents

• Former Energy Official Questioned in Pertamina Corruption Probe
  • Key Witness Examined in Pertamina Corruption Case
  • Multiple Witnesses Called for Questioning
  • Investigation Aims to Strengthen Evidence
  • nine Suspects Identified in Pertamina Corruption Case
  • Massive State Losses Uncovered
  • Unraveling the Pertamina scandal: An Exclusive Interview with Dr. Anya Sharma, expert on Indonesian Energy Governance
• Pertamina Corruption Scandal: Unraveling Indonesia’s Energy Crisis

Jakarta – The attorney General’s Office (AGO) is intensifying its investigation into alleged corruption within PT Pertamina,focusing on crude oil governance and refinery products. Djoko Siswanto (DS), the former Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, faced questioning on Thursday, June 3rd, as part of this ongoing probe. The AGO aims to solidify its case against multiple suspects in this high-profile matter, where state losses are estimated at Rp193.7 trillion.

Key Witness Examined in Pertamina Corruption Case

The Attorney general’s Office (AGO) continues its examination of key figures in a meaningful corruption case involving PT Pertamina, the state-owned oil and gas company. At the center of the investigation is the governance of crude oil and refinery products during the period of 2018-2023. The AGO’s investigation is meticulously gathering evidence to build a strong case against those implicated.

Harli Siregar, head of the Legal Details Center of the Attorney General’s Office, confirmed that Djoko Siswanto (DS), who served as the Director General of Oil and Gas at the Ministry of Energy and Mineral Resources in 2018, was examined by investigators from the deputy Attorney General for Special Crimes on Thursday, June 3rd.

According to Siregar,”The witnesses examined were DS as the Director General of Oil and Gas at the Ministry of Energy and Mineral Resources in 2018.” This examination is a crucial step in understanding the alleged irregularities within Pertamina’s operations during the specified period.

Multiple Witnesses Called for Questioning

The AGO’s investigation extends beyond Djoko Siswanto, encompassing a range of individuals connected to Pertamina and related entities. The breadth of the inquiry underscores the complexity of the alleged corruption and the AGO’s commitment to uncovering all facets of the case.

Along with Djoko Siswanto, investigators also questioned Tri, the terminal manager of PT Orbit Terminal Merak, and DA, the Head of the Work Area Management Division and the SKK Migas Cost strategy. These testimonies are expected to provide further insights into the operational and financial aspects of the alleged corruption.

Moreover, MHN, Senior Manager of Asia Trading Trafigura; ADD, VP Commercial and Sales of PT Kilang Pertamina International; and Ers, VP Retail Fuel Sales PT Pertamina Patra Niaga, were also called in for questioning. Their involvement suggests a wide network of individuals potentially connected to the case.

The list of witnesses extends to AAHP, VP PT PTD Pertamina Patra Niaga; BP, Fuel Supply Operation Manager PT Pertamina Patra Niaga; and AI, the Manager of PT Pertamina Patra Niaga’s Product Trading. The AGO’s thorough approach aims to leave no stone unturned in its pursuit of justice.

Investigation Aims to Strengthen Evidence

While Harli Siregar did not disclose specific details from the witness examinations, he emphasized the purpose of these interrogations. The AGO is focused on building a robust case by strengthening the available evidence and completing the necessary filings.

Siregar stated, “The witness examination was carried out to strengthen the proof and complete the filing in the case.” This statement highlights the AGO’s dedication to a meticulous and thorough investigation, ensuring that all evidence is carefully considered.

nine Suspects Identified in Pertamina Corruption Case

The Attorney General’s Office has identified nine suspects in this complex corruption case. The suspects include six individuals associated with Pertamina and three from private sector entities, indicating a potential collaboration in the alleged illicit activities.

Among the suspects is Riva Siahaan, the President Director of PT Pertamina Patra Niaga. Siahaan’s involvement underscores the high-level nature of the alleged corruption and its potential impact on the company’s operations and reputation.

Massive State Losses Uncovered

The Attorney General’s Office estimates that the total losses to the state consequently of this corruption case amount to a staggering Rp193.7 trillion. This ample figure highlights the severity of the alleged crimes and the potential damage to the Indonesian economy.

The breakdown of the losses includes approximately Rp35 trillion from domestic crude oil exports, Rp2.7 trillion from crude oil imports through DMUT/broker,and Rp9 trillion from fuel imports through DMUT/Broker. Additionally, the AGO estimates losses of around Rp126 trillion in compensation (2023) and Rp21 trillion in subsidies (2023).

Pertamina Corruption Scandal: Unraveling Indonesia’s Energy Crisis

“The Pertamina corruption case isn’t just about financial losses; it’s a symptom of deeper systemic issues undermining Indonesia’s economic stability and international reputation.”

Interviewer (Senior Editor, world-today-news.com): Dr. Aris Budiman, a leading expert in Indonesian economics and governance, welcome. This massive corruption case involving Pertamina,Indonesia’s state-owned oil and gas giant,has sent shockwaves through the nation and globally. Can you shed light on the core issues driving this crisis?

Dr. Budiman: Thank you for having me. The Pertamina scandal exposes critical weaknesses in indonesia’s state-owned enterprise (SOE) governance. At its heart, it’s not just about a single instance of corruption but reveals systemic vulnerabilities that allow large-scale financial malfeasance within soes. The alleged Rp193.7 trillion loss highlights the urgent need for comprehensive reform in transparency, accountability, and control mechanisms within Indonesia’s energy sector.

Interviewer: The investigation centers on crude oil governance and refinery products. What specific vulnerabilities within these areas make them particularly susceptible to corruption and illicit activities?

Dr. Budiman: The oil and gas sector, globally, presents inherent complexities ripe for exploitation. In the context of Pertamina,several key weaknesses stand out.Crude oil governance,particularly regarding procurement,export,and import contracts,can be manipulated. Opaque tender processes, a lack of autonomous oversight, and insufficient due diligence create opportunities for bribery, kickbacks, and inflated pricing. Similarly, refinery product management presents a high risk—adjusting supply and demand figures, creating artificial shortages, and influencing pricing mechanisms all provide avenues for corrupt practices, leading to significant financial losses for the state.

Interviewer: The Attorney General’s Office (AGO) has questioned numerous individuals, including a former Director General of Oil and Gas. What does this signify about the scope and potential impact of the investigation?

Dr. Budiman: The AGO’s questioning of high-ranking officials, including former government ministers and senior executives from Pertamina and affiliated companies showcases a determined effort to root out corruption at all levels. This is crucial because it signals a departure from previous trends where high-level impunity fostered the continuation of such practices.Targeting individuals in key positions demonstrates a significant shift towards accountability,possibly deterring future corruption within Indonesia’s energy sector and potentially influencing similar probes in other sectors.

Interviewer: The investigation’s wide reach implicates individuals from various organizations—Pertamina, private sector companies, and government agencies. What does this broad web of interconnectedness suggest about the true nature of the alleged corruption?

Dr. Budiman: The interconnected nature of the implicated individuals—spanning Pertamina,private firms involved in the Indonesian oil and gas sector,and government entities—strongly suggests a system of collusion. It shows that corruption went far beyond isolated incidents and highlights a concerning lack of checks and balances. This level of alleged collaboration points to systemic flaws requiring deep reforms in governance, regulatory oversight, and ethical conduct. This kind of refined network frequently enough relies on complex financial structures, including opaque transactions and potentially international money laundering, demanding a thorough investigative response.

Interviewer: What key preventative measures could Indonesia implement to prevent future occurrences of such sweeping corruption within its SOEs, specifically focusing on long-term, systemic reform?

Dr. Budiman: Indonesia needs a multi-pronged approach encompassing several key areas:

Enhanced Transparency: Mandating full public disclosure of all contracts, financial records, and decision-making processes within Pertamina and other SOEs.

Strengthened Regulatory oversight: Establishing independent regulatory bodies with robust investigative powers to rigorously monitor compliance.

Effective Internal Controls: Implementing strong internal audit functions complemented by independent external audits and robust whistleblower protection programs.

Promoting Ethical Conduct and Corporate Social duty: Integrating ethical training into SOE operations, creating clear codes of conduct, and promoting a culture of integrity.

* Strengthening International Cooperation: Collaborating with international organizations specializing in governance reform and anti-corruption efforts to leverage best practices and expertise.

Interviewer: What is the broader impact of this scandal on Indonesia’s economy and reputation, particularly considering how this impacts foreign direct investment?

dr. Budiman: This corruption scandal fundamentally undermines Indonesia’s economic stability and international standing.The significant financial losses weaken investor confidence, making Indonesia’s SOEs less attractive and inhibiting crucial foreign investment. It raises questions about governance, transparency, and accountability. The reputational damage this brings will considerably impact Indonesia’s ability to attract future foreign direct investment (FDI),essential for economic growth and growth. This incident also tarnishes Indonesia’s image within the international community,impacting its attractiveness in trade relationships.

Interviewer: What is your concluding message, and what must Indonesia do going forward to resolve this crisis wholly?

Dr. Budiman: The Pertamina case demands a forceful,comprehensive response exceeding superficial changes. Real, deep reform must address systematic vulnerabilities, promoting far-reaching transparency, accountability, ethical behaviour, and enhancing regulatory effectiveness. Failure to adopt these crucial measures will only perpetuate such damaging incidents, undermining Indonesia’s economic stability and its global standing. Indonesia needs to not only address the symptoms but also identify and rectify the root causes of corruption if it means to recover its credibility.

I urge readers to stay informed, engage actively in discussions, and demand transparency and accountability from government officials. share your thoughts in the comments below.