Jakarta. Simon Aloysius Mantiri, the president director of state-owned oil company Pertamina, issued a public apology on Monday as prosecutors investigate a massive corruption scandal involving unauthorized crude oil imports and fraudulent fuel blending.

The Attorney General's Office (AGO) has arrested nine suspects, including two CEOs of Pertamina subsidiaries, in connection with the case. Investigators estimate that the illegal activities caused Rp 193.7 trillion ($11.9 billion) in state losses.

The investigation into Pertamina’s fuel blending and illegal crude imports is shaping up to be one of the country’s biggest corruption cases. With top executives already in custody, and billions of dollars in state losses at stake, the case is likely to have far-reaching consequences for Indonesia’s energy sector and corporate governance.

During a press conference at Pertamina’s headquarters in Jakarta, Simon presented government test results to refute allegations that the company has been selling blended fuel products.

"We apologize for this unfortunate event, which has dealt a severe blow and saddened all of us at Pertamina," Simon said.

"This is a crucial test for Pertamina, and we appreciate the Attorney General's Office for taking action against alleged misappropriations in crude oil management by Pertamina subsidiaries from 2018 to 2023."

He pledged full cooperation with investigators, vowing to provide data and information needed for the probe.

Simon also announced plans to establish a crisis center to reevaluate business procedures and operations across Pertamina’s subsidiaries, aiming to improve governance and accountability.

“As the company’s top executive, I will be on the front line to ensure that Pertamina remains a trusted company and a source of national pride for all Indonesians,” Simon said.

Gasoline Quality Test Results
Simon also addressed allegations that Pertamina’s gasoline product, Pertamax, was diluted with low-quality fuel.

He cited recent laboratory tests conducted by the Oil and Natural Gas Review Agency (Lemigas), which examined 75 fuel samples from various stations across Greater Jakarta.

According to Simon, the results confirmed that all samples met government-mandated quality standards for different fuel grades, including: RON 90 (Pertalite), RON 92 (Pertamax), RON 95 (Pertamax Green), and RON 98 (Pertamax Turbo).

“Lemigas has tested 75 gasoline samples, and the results confirm that our products comply with the quality standards set by the Ministry of Energy and Mineral Resources.”

High-Profile Arrests in the Corruption Case
Six top Pertamina executives and three private-sector individuals have been detained in connection with the scandal.

Detained Pertamina Executives:

• Riva Siahaan – CEO of Pertamina Patra Niaga
• Yoki Firnandi – CEO of Pertamina International Shipping
• Sani Dinar Saifuddin – Feedstock and Product Optimization Director at Kilang Pertamina Internasional
• Agus Purwono – Vice President for Feedstock Management at Kilang Pertamina Internasional
• Maya Kusmaya – Central Marketing Director at Pertamina Patra Niaga
• Edward Corne – Vice President for Trading Operation at Pertamina Patra Niaga

Detained Private-Sector Executives:

• Muhammad Kerry Andrianto Riza – Beneficial owner of oil shipping company Navigator Khatulistiwa
• Dimas Werhaspati – Commissioner of Navigator Khatulistiwa and Jenggala Maritim
• Gading Ramadhan Joedo – Commissioner of Jenggala Maritim and CEO of Orbit Terminal Merak

Details of the Alleged Fraud
Prosecutors allege that the suspects illegally imported crude oil to supply Pertamina’s refineries, despite government restrictions, and fraudulently blended high-octane Pertamax fuel with lower-quality gasoline for public sale between 2018 and 2023.

Investigators claim that Pertamina executives manipulated supply chains to justify rejecting locally sourced crude oil, allowing them to import oil at inflated shipping rates for illicit profit. As a result, domestically produced crude had to be exported at lower prices, despite government mandates requiring its use for national fuel needs.

Last Wednesday, AGO Director of Corruption Investigation Abdul Qohar revealed evidence suggesting that Pertamina’s fraudulent fuel blending involved even lower-quality gasoline than previously thought.

"Evidence from past transactions shows that RON 88 gasoline was blended with RON 92 gasoline (Pertamax)," Abdul said during a press conference.
"This blended fuel was then marketed as RON 92 gasoline."

Earlier reports had indicated that Pertamina Patra Niaga executives mixed Pertamax (RON 92) with Pertalite (RON 90) -- a government-subsidized fuel -- between 2018 and 2023. However, prosecutors now believe the blend contained RON 88, a lower-grade gasoline not approved for public sale.