ASIATODAY.ID, JAKARTA — Indonesia’s sprawling corruption trial involving state-owned oil and gas company PT Pertamina escalated sharply this week after its former President Commissioner, Basuki Tjahaja Purnama (Ahok), delivered testimony that linked alleged $18 billion in state losses to structural failures in procurement, political interference, and the removal of reformist executives.
Appearing before the Jakarta Corruption Court on Tuesday, January 27, 2026, Ahok framed the case not as isolated wrongdoing but as evidence of systemic governance breakdown inside one of Southeast Asia’s most strategically important energy firms.
In unusually direct remarks, Ahok urged prosecutors to consider questioning former Indonesian President Joko Widodo and senior officials at the Ministry of State-Owned Enterprises, arguing that controversial leadership dismissals at Pertamina could not have occurred without approval from the highest levels of government.
A Case That Goes Beyond Individual Defendants
Prosecutors have charged nine former Pertamina executives and private-sector intermediaries over alleged irregularities in crude oil imports, fuel trading, and procurement contracts between 2018 and 2023.
While the defendants include former CEOs, directors, and shipping executives, Ahok’s testimony suggests the alleged misconduct reflects entrenched institutional practices, rather than the actions of a few rogue actors.
According to prosecutors, the scheme inflated import volumes and distorted procurement pricing, ultimately burdening the state budget and undermining Indonesia’s energy security.
Informal Power and the ‘Golf Economy’
One of the most revealing aspects of Ahok’s testimony concerned the informal arenas of influence within Indonesia’s oil and gas sector.
Ahok described golf courses as a preferred venue for negotiations with multinational energy players, portraying them as low-cost, low-visibility spaces where commercial and political interests intersect.
“Negotiations on golf courses are cheaper and more effective than nightclubs,” Ahok told the court, underscoring how informal networks operate alongside formal procurement rules.
While he denied that such interactions constituted gambling or bribery, his remarks illustrated how elite social spaces function as parallel decision-making channels, blurring the boundaries between corporate governance and personal relationships.
Procurement Failures and Energy Security Risks
Ahok testified that distorted procurement practices led to excessive reliance on imports and, at times, left Indonesia with oil reserves sufficient for less than 30 days—a critical vulnerability for the world’s fourth-most-populous nation.
He proposed a transparent, digital procurement system using Indonesia’s national e-catalogue platform, claiming it could reduce costs by up to 46 percent. However, he said such reforms faced resistance from within the system.
Audit findings by state institutions, Ahok argued, were frequently minimized as mere “overpayments,” masking deeper governance failures.
Reformers Removed, Resistance Entrenched
A central theme of Ahok’s testimony was the removal of two senior executives—Joko Priyono and Mas’ud Khamid—whom he described as rare reformers inside Pertamina’s complex bureaucracy.
According to Ahok, both men resisted signing off on questionable procurement contracts and were subsequently dismissed.
“They were the best executives Pertamina had,” Ahok said, describing their removal as a signal that institutional resistance to reform remains deeply embedded.
The episode highlights the risks faced by reform-minded officials in Indonesia’s state-owned enterprises, where political considerations often intersect with commercial decisions.
Calls to Question Political Authority
Ahok’s call for prosecutors to question former SOE Minister Erick Thohir and ex-President Joko Widodo marked one of the most politically sensitive moments of the trial.
He argued that decisions affecting strategic subsidiaries of Pertamina—particularly leadership changes—would have required political clearance.
While there is no allegation that Jokowi has been charged or named as a suspect, the suggestion underscores the blurred lines between political oversight and operational independence in Indonesia’s SOE sector.
A Test for Indonesia’s Governance Reform Agenda
Ahok said he resigned from Pertamina in early 2024 after clashing politically with the administration and failing to secure full implementation of procurement reforms embedded in the company’s 2024 budget.
He also denied any personal relationship with fugitive oil trader Riza Chalid, a figure long associated with influence-peddling allegations in Indonesia’s energy industry.
As the trial continues, international observers are watching closely. The outcome is expected to test Indonesia’s commitment to SOE reform, transparency, and rule of law at a time when the country seeks to position itself as a reliable energy supplier and investment destination amid global energy realignment. (AT Network)
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