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Analysis: Targeting oil ‘mafia’: A gimmick or genuine fight against corruption?
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President director Riva Siahaan of PT Pertamina Patra Niaga, the commercial arm of state-owned oil and gas giant Pertamina, is detained after being named a suspect in a corruption case by the Attorney General's Office (AGO) in Jakarta on Feb. 25, 2025. (Antara Foto/Rivan Awal Lingga)
P
resident Prabowo Subianto has vowed to crack down on mafia-like practices in the oil and gas industry, after an ongoing probe named nine executives as suspects in a case on fraudulent crude oil and fuel trading, estimated to have incurred state losses of Rp 193.7 trillion (US$12 billion) between 2018 and 2023. The outcome of this case will be a test of Prabowo’s commitment to fighting corruption in the energy sector, especially as to whether the investigation extends to high-profile figures who might have profited from the illegal activity.
On Monday, the Attorney General’s Office (AGO) arrested seven suspects including Kerry Andrianto Riza, a son of oil tycoon Riza Chalid, dubbed the “oil king” by the media, two other private businessmen and four top executives at Pertamina subsidiaries.
The executives of Pertamina subsidiaries are: Riva Siahaan, president director of PT Pertamina Patra Niaga; Yoki Firnandi, CEO of PT Pertamina International Shipping; Sani Dinar Saifuddin, director of feedstock and product optimization at PT Kilang Pertamina International (KPI); and Agus Purwono, vice president feedstock management at KPI.
The two private businessmen are: Gading Ramadhan Joedo, commissioner of PT Jenggala Maritim Nusantara (JMN) and president director of PT Orbit Terminal Merak, and Dimas Werhaspati, commissioner of JMN and commissioner of PT Navigator Khatulistiwa, of which Kerry Andrianto is beneficial owner.
On Wednesday, the AGO arrested two more suspects, both executives at Pertamina Patra Niaga: marketing director Maya Kusmaya and vice president trading operation Edward Corne.
According to the AGO, the suspects allegedly violated a ministerial regulation requiring domestically produced crude oil to be refined at facilities operated by PT Kilang Pertamina International. Instead, they claimed that domestic crude was unsuitable for local processing, exported the fuel at favorable prices and arranged crude oil imports for Pertamina refineries at spot market prices for personal gain.
To maximize their earnings, the suspects allegedly imposed an inflated 13-15 percent transportation fee through Pertamina International Shipping.
