Attorney General’s Office Uncovers Rp 193.7 Trillion Corruption in Pertamina’s Crude Oil and Refinery Products Governance

Jakarta, xweb.biz.id – The Attorney General’s Office (Kejagung) has revealed a major corruption case involving crude oil governance and refinery products at PT Pertamina Subholding and Cooperation Contract Contractors (KKS) between 2018 and 2023. The case has resulted in an estimated state loss of Rp 193.7 trillion.

The Director of Investigation at the Junior Attorney General for Special Crimes (Jampidsus), Abdul Qohar, announced on Monday night (February 24, 2025) that seven individuals have been named as suspects. The suspects include RS, the President Director of PT Pertamina Patra Niaga; SDS, the Director of Feedstock and Product Optimization at PT Pertamina International Refinery; and YF from PT Pertamina International Shipping.

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Modus Operandi and State Losses

Qohar explained that the state losses in this case resulted from various factors, including domestic crude oil export losses, crude oil import losses through brokers, fuel import losses through brokers, and losses from compensation and subsidies.

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Between 2018 and 2023, domestic crude oil fulfillment was required to prioritize local petroleum supplies. PT Pertamina (Persero) was mandated to source petroleum from domestic contractors before planning any imports. This regulation was stipulated in Article 2 and Article 3 of the Ministry of Energy and Mineral Resources (ESDM) Regulation No. 42 of 2018, which mandates the prioritization of domestic petroleum.

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However, according to Qohar, suspects RS, SDS, and AP allegedly manipulated downstream optimization meetings to justify reducing refinery production, preventing the full absorption of domestically produced petroleum.

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Deliberate Reduction in Domestic Oil Absorption

As a result of this manipulation, domestic crude oil production by KKS was intentionally rejected under claims that it did not meet specifications or lacked economic value. This led to the forced export of domestically produced crude oil.

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To compensate for the artificially reduced domestic supply, PT Pertamina International Refinery was instructed to import crude oil, and PT Pertamina Patra Niaga imported refinery products instead.

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“The purchase price of imported crude oil compared to domestic production showed significantly high price discrepancies,” Qohar explained.

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Illegal Profits Through Brokers

Investigators uncovered evidence of illicit cooperation between state officials, Pertamina subholding executives, and brokers. The procurement of imported crude oil by PT Pertamina International Refinery and refinery products by PT Pertamina Patra Niaga revealed corruption patterns.

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“Suspects RS, SDS, and AP unlawfully secured brokers for crude oil and refinery products,” Qohar stated.

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Furthermore, suspects DW and GRJ allegedly coordinated with AP to obtain excessively high prices even before meeting requirements. They also received approvals from SDS for crude oil imports and from RS for refinery product imports.

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Impact on Fuel Pricing and Public Losses

As a consequence of this corruption, the price components used as benchmarks for setting the Market Index Price (HIP) for fuel were artificially inflated. The HIP, which serves as the basis for fuel compensation and subsidies through the State Budget (APBN), was thus manipulated, causing severe financial losses to the state amounting to Rp 193.7 trillion.

However, Qohar emphasized that this figure is an estimated loss calculated by investigators. Further assessments involving financial experts will be conducted to confirm the exact amount of damages.

The Attorney General’s Office continues its investigation to uncover the full scope of the case and ensure accountability for those involved in the alleged corruption scheme.

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