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View all search resultsPlans to merge Pertamina’s downstream subsidiaries have been in the works since early last year, after a corruption scandal over the alleged sale of lower-grade imported fuel as higher-octane products.
Since last week, reports have been circulating both online and offline from drivers in East Java complaining that their vehicles stalled or broke down after refueling with Pertalite. Many users also noted a stronger, alcohol-like odor coming from the fuel.
Several private companies, including Garibaldi "Boy" Thohir's Adaro Energy, have been dragged into the spotlight after prosecutors charged PT Pertamina and its subsidiary, PT Pertamina Patra Niaga (PPN), with corruption that allegedly cost the state trillions of rupiah. The case centers on the underpricing of unsubsidized Solar and Biosolar, Pertamina's diesel and biodiesel fuel brands, sold to numerous private sector buyers. The indictment, which could result in state losses of up to hundreds of trillions of rupiah, has sparked a heated debate among experts and civil society. Some caution against the potential criminalization of private sector buyers, while others insist on pursuing all possible corporate links to the corruption scheme.
The government's plan to impose a single price for subsidized LPG canisters across all regions, to be legalized via a Perpres, aims to ensure even distribution and a fair price for all eligible consumers by preventing market manipulation.
The SOEs minister has vowed to reform Pertamina, including by possibly merging PT Pertamina Patra Niaga and PT Kilang Pertamina Internasional, two of at least three subsidiaries currently embroiled in a fraud and corruption probe by the AGO related to fuel imports in 2018-2023.
The Jakarta Legal Aid Institute (LBH Jakarta) will file a lawsuit against energy giant Pertamina and its subsidiaries to ensure compensation for consumers potentially affected by the allegedly low-quality gasoline that was sold as premium fuel.
The President has vowed to crack down on corruption in the oil and gas industry after the AGO detained several executives, including the president director of a Pertamina subsidiary, as suspects in an ongoing case pertaining to fuel imports.
PT Pertamina Patra Niaga reaffirms its commitment to sustainability by obtaining the International Sustainability and Carbon Certification (ISCC) for the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and the Renewable Energy Directive-European Union (RED-EU). This marks an important step in the provision of sustainable aviation fuel (SAF) in Southeast Asia, while also strengthening its position as a pioneer in the aviation industry committed to global carbon emission reduction.
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