Pertamina Patra Niaga CEO, Six Others Arrested in $11 Billion Corruption Scandal
Jakarta. The Attorney General’s Office (AGO) has arrested Riva Siahaan, president director of Pertamina Patra Niaga, along with six other suspects on Monday evening in connection with an $11 billion crude oil corruption scandal.
Pertamina Patra Niaga is the sales arm of state-owned oil and gas company Pertamina.
The six other suspects, whose names were disclosed only by their initials, include executives from two Pertamina subsidiaries -- Kilang Pertamina Internasional and Pertamina International Shipping -- and three private-sector firms -- Navigator Khatulistiwa, Jenggala Maritim, and Orbit Terminal Merak.
They are accused of violating government regulations that require Pertamina to prioritize locally sourced crude oil for domestic fuel production, said AGO spokesman Harli Siregar.
“The regulation mandates Pertamina to source crude oil from domestic suppliers and refine it locally to meet national fuel demands,” Harli explained.
However, during the COVID-19 pandemic, Pertamina exported crude oil and condensate, citing reduced production capacity at its refineries. At the same time, the company imported crude oil to meet production targets, raising suspicions of financial mismanagement.
According to Abdul Qohar, the AGO’s director of corruption investigations, the illegal crude oil trade between 2018 and 2023 resulted in an estimated state loss of Rp 193.7 trillion ($11.9 billion).
"Based on witness statements, expert opinions, and legally obtained documents, the investigation team has identified seven suspects," Abdul stated during a press conference at the AGO headquarters in Jakarta.
All seven suspects have been detained after undergoing medical checkups.
Pertamina spokesman Fadjar Djoko Santoso confirmed 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.
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