Pertamina Patra Niaga Executives Named suspects in Massive corruption Case
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JAKARTA – The Attorney General’s Office (AGO) has escalated its examination into alleged corruption within PT Pertamina (Persero), naming two high-ranking officials of its subsidiary, PT Pertamina Patra Niaga, as suspects. Maya Kusmaya, pertamina Patra Niaga’s Central Marketing Director, and Edward Corne, Pertamina Patra Niaga’s VP Trading Operation, now face scrutiny in connection with a case involving crude oil and refinery products. The AGO’s announcement marks a significant development in the ongoing probe, which alleges considerable financial losses to the state, totaling Rp193.7 trillion.
The investigation centers on suspected irregularities in the procurement and management of crude oil and refinery products, raising concerns about transparency and accountability within the state-owned energy giant. The AGO’s move to designate Kusmaya and Corne as suspects underscores the seriousness of the allegations and the potential for far-reaching consequences.
Forced Pick-up and Marathon Questioning
According to Head of the AGO KAPUSKUM, Hari Siregar, both Maya Kusmaya and Edward Corne were initially summoned to appear as witnesses on Wednesday, February 26, at 10:00 WIB.However,they failed to attend without providing any clarification.
After waiting at a certain time that the two witnesses did not attend without reason. Therefore, investigators were determined, searching, and found. Then by investigators, forced pick -up action and brought before investigators.
Hari Siregar,Head of the AGO KAPUSKUM
The AGO’s Director of Investigation of Jampidsus,Abdul Qohar,elaborated on the circumstances of their apprehension,stating that investigators located and “forcibly picked up” Maya and Edward at their office around 14:00 WIB. Following their apprehension, investigators immediately commenced questioning them as witnesses.
So we are forced to pick up the person in the office.
Abdul Qohar, Director of Investigation of Jampidsus AGO
qohar further explained that the examination proceeded in a marathon session starting at 15:00 WIB. During this intensive questioning, investigators reportedly uncovered sufficient evidence to elevate their status from witnesses to suspects.
Investigators have found sufficient evidence that the two suspects are suspected of committing a crime together with seven suspects that we had conveyed yesterday.
Abdul Qohar,director of Investigation of Jampidsus AGO
Potential Penalties and Existing Suspects
Maya kusmaya and Edward Corne now face charges under Article 2 paragraph (1) or Article 3 jo. article 18 of RI Law number 31 of 1999,as amended by Law Number 20 of 2001,concerning Eradication of Corruption Crimes,in conjunction with Article 55 paragraph (1) of the 1st Criminal Code. These charges carry possibly severe penalties, reflecting the gravity of the alleged offenses.
The AGO had previously identified seven other suspects in connection with the same case, comprising four Pertamina employees and three individuals from private entities.Among those previously named is Riva Siahaan, the President Director of PT Pertamina Patra Niaga.
Other suspects include SDS,Director of Feed Stock and Product Optimization of PT Kilang Pertamina Internasional; YF,President Director of PT Pertamina International Shipping; and AP,VP feed Stock Management of PT Kilang Pertamina International. The private sector suspects are DW, Beneficial Owner of PT Navigator Khatulistiwa and Commissioner of PT Jenggala Maritime; YRJ, Commissioner of PT Jenggala Maritime and Managing Director of PT Orbit Terminal Mera.
Staggering State Losses
The Attorney General’s Office estimates that the total losses to the state resulting from this corruption case amount to a staggering Rp193.7 trillion.This figure encompasses various aspects of the alleged scheme, including:
- Losses from domestic crude oil exports: approximately Rp35 trillion
- Losses from crude oil imports thru DMUT/broker: around Rp2.7 trillion
- Losses from fuel imports through DMUT/broker: approximately Rp9 trillion
- Losses from compensation (2023): around Rp126 trillion
- Losses from subsidies (2023): approximately Rp21 trillion
These figures highlight the potential scale of the alleged corruption and its significant impact on the Indonesian economy.
Conclusion
The naming of Maya Kusmaya and Edward Corne as suspects marks a critical juncture in the Attorney General’s Office’s investigation into alleged corruption within Pertamina Patra Niaga.As the legal proceedings unfold, the focus will be on uncovering the full extent of the alleged scheme and holding those responsible accountable for their actions. The outcome of this case will likely have significant implications for the future of Pertamina and the broader energy sector in Indonesia.
Pertamina Patra Niaga Scandal: Unraveling Indonesia’s Energy Corruption
Did you know that a single corruption case can cost a nation trillions of rupiah and severely damage its energy sector’s reputation? This interview delves into the massive corruption allegations surrounding Indonesian state-owned energy giant Pertamina Patra Niaga, exploring the implications for the nation’s economy and its energy future.
Interviewer: Dr. Anya Sharma, a leading expert in Asian energy markets and corporate governance, joins us today to shed light on this unfolding scandal. Dr. Sharma, welcome. The attorney General’s Office has named several high-ranking Pertamina Patra Niaga executives as suspects in a case involving alleged losses totaling Rp193.7 trillion. Can you provide some context on the gravity of this situation within Indonesia’s energy sector?
Dr. Sharma: Thank you for having me. The scale of the alleged corruption within Pertamina Patra Niaga is truly staggering. Rp193.7 trillion represents a meaningful portion of Indonesia’s national budget and underscores the systemic vulnerabilities within the country’s energy governance. This isn’t just about financial losses; it erodes public trust, harms investor confidence, and ultimately undermines Indonesia’s efforts to secure its energy future.The alleged irregularities in the procurement and management of crude oil and refinery products highlight weaknesses in transparency and accountability mechanisms. This case exemplifies the risks associated with a lack of robust oversight in state-owned enterprises managing critical national resources.
Interviewer: The investigation centers around suspected irregularities in the procurement and management of crude oil and refinery products. What are some of the common mechanisms used in such energy-sector corruption schemes, and how do they manifest?
Dr. Sharma: Corruption in the energy sector often involves complex schemes that are difficult to detect.Common tactics include: inflated procurement contracts, where companies collude to overcharge the state-owned entity; bribery and kickbacks exchanged between officials and private companies; misleading fuel pricing and subsidy allocation; and opaque trading practices, especially in the international crude oil market. In this Pertamina case, the investigation involves exploring alleged losses from domestic crude oil exports, crude oil imports via intermediaries (DMUT/brokers), fuel imports through similar channels, compensation schemes, and fuel subsidies. These are all areas ripe for manipulation and therefore, require robust oversight.
Interviewer: The forced apprehension of two high-ranking officials highlights the seriousness of the investigation. What message does this send, both domestically and internationally?
Dr. Sharma: The forceful apprehension sends a powerful message – the Indonesian government is serious about tackling corruption within its state-owned enterprises. This is critical for both domestic and international audiences. Domestically, it signals a commitment to accountability and potentially reduces public tolerance for corruption. Internationally, it demonstrates a stricter approach to enforcing corporate governance. However, the success will depend on the thoroughness and impartiality of the investigation and equally importantly, the effectiveness of any subsequent prosecutions.
Interviewer: The potential penalties for those convicted are severe.what are the potential long-term consequences for Pertamina Patra Niaga and the Indonesian economy, and how can the country improve its energy sector governance moving forward?
Dr. Sharma: The long-term consequences are significant. Damaged Reputation: The scandal will undoubtedly hurt Pertamina Patra Niaga’s image, potentially impacting its ability to secure future investments and contracts. Economic Instability: the scale of the alleged losses could further destabilize the Indonesian economy. Weakened Energy Security: A compromised state-owned entity undermines the stability of its energy sector. How can Indonesia improve?: Implement stronger anti-corruption measures within state-owned enterprises, including stricter financial audits, increased transparency in procurement processes, and the adoption of international best practices. They should increase self-reliant oversight and enhance whistleblower protection. Strengthening Regulatory Frameworks: Regulations need to be modernized to tackle complex, modern schemes.Investing in Technology: Leveraging technologies to enhance transparency and data analysis is critical.
Interviewer: What would you recommend for readers who wish to remain informed about this case and similar developments in the global energy sector in these areas?
Dr. Sharma: Stay informed through credible news sources and reputable academic research on energy sector corporate governance and anti-corruption efforts. Follow updates from organizations like Transparency international and the world Bank, and maintain awareness of independent audits and financial reports for leading energy sector companies to understand global energy sector best practices, and the challenges of corruption in a resource-rich environment.
Concluding Thoughts:
This interview highlights the significant challenges of corruption in the energy sector and the serious consequences it can have on resource-rich nations.The Pertamina Patra Niaga case serves as a stark reminder of the need for robust corporate governance, increased transparency, and firm enforcement of anti-corruption laws. What are your thoughts on how this impacts the Indonesian economy,other state-owned companies,and similar problems elsewhere? Share your thoughts in the comments below!