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Indonesia Robbed: Pertamina Oil Scandal Costs Nation $17 Billion

by Editor Asiatoday
January 31, 2026
in News
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Indonesia Robbed: Pertamina Oil Scandal Costs Nation $17 Billion

The defendants in the Pertamina corruption case after undergoing trial at the Jakarta Criminal Court on Thursday, January 29, 2026. Special

ASIATODAY.ID, JAKARTA — Alleged corruption at PT Pertamina Persero and its subsidiaries has shocked the nation, with the Indonesian Supreme Audit Agency (BPK) revealing staggering losses.

Mismanagement of crude oil and refinery products has cost the state $2.7 billion and IDR 25.4 trillion, with total estimated economic damages reaching IDR 285 trillion ($17 billion).

BPK Evidence in Jakarta Corruption Court

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Hasby Ashidiqi, Deputy Head of BPK’s Investigative Audit, disclosed these figures during a hearing at the Jakarta Corruption Court on Thursday, January 29, 2026.

“The total financial loss calculated by BPK is $2,725,819,709.98 and IDR 25,439,881,674,368.26,” he said.

Prosecutor Dr. Zulkipli, S.H., M.H., added that the lease of PT Orbit Terminal Merak (OTM) was part of a malicious collusion scheme involving private actors, including Mohammad Riza Chalid.

“The lease was enforced even though Pertamina has 113 operational terminals. The procurement process ignored proper feasibility studies and violated legal procedures,” said Zulkipli.

In addition, fuel blending operations at OTM were found to fail certification standards, unnecessarily raising Pertamina’s operational costs and causing IDR 13 trillion in improper government compensation.

Seven Major Corruption Clusters

BPK outlined seven key clusters of unlawful projects and procurement that caused state losses:

1. Crude Oil Exports – Pertamina rejected seven crude oil offers from contractors (KKKS) even though prices were lower than its own estimates.
Losses: $1.82 billion

2. Crude Oil Imports – Violations included omitting value-based criteria, predominantly spot-based procurement, and preferential treatment for 10 business partners.
Losses: $570.2 million

3. Fuel Imports (BBM) – Some suppliers received preferential treatment, raising import costs while fuel quality failed specifications.
Losses: $325.37 million

4. Oil Tanker Leasing – Vessels owned by Muhamad Kerry Adrianto Riza (Jenggala Hasyim, Jenggala Bango, Jenggala 21, Olympic Luna) caused $11.09 million and IDR 1.07 billion in losses.

5. Fuel Terminal Leasing – Leasing OTM terminals was unnecessary as Pertamina did not need additional facilities.
Losses: IDR 2.9 trillion

6. Special Fuel Assignment Compensation (JBKP RON 90) – Price formulas were manipulated so Pertamina received excessive compensation.
Losses: IDR 13.1 trillion

7. Non-Subsidized Diesel Sales – Sold below production cost and even below subsidized diesel base prices.
Losses: IDR 9.4 trillion

Nine Key Defendants

Nine main defendants are implicated, including:
Muhamad Kerry Adrianto Riza – Beneficial Owner, PT Orbit Terminal Merak
Yoki Firnandi – CEO, PT Pertamina International Shipping
Agus Purwono – VP Feedstock Management, PT Kilang Pertamina Internasional
Dimas Werhaspati – Commissioner, PT Navigator Khatulistiwa & PT Jenggala Maritim
Gading Ramadhan Joedo – Commissioner, PT Jenggala Maritim & CEO, PT Orbit Terminal Merak
Riva Siahaan, Sani Dinar Saifuddin, Maya Kusmaya, Edward Corne – Directors, PT Pertamina Patra Niaga

Their actions have caused IDR 285.1 trillion in losses, with minimal personal gains reaching $9.8 million for certain individuals.

Public Outcry

The scandal has triggered strong public reactions online, with citizens demanding:
– Severe law enforcement, including arrest by counter-terror and special forces units
– Life imprisonment at Nusakambangan Prison for the main perpetrators
– Asset seizure for the people

Social media comments frequently name Riza Chalid in connection with the projects that harmed the state. The case adds to Indonesia’s long record of energy sector corruption and raises serious concerns about transparency and governance in strategic state-owned enterprises. (AT Network)

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Tags: Asia CorruptionPertamina
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