Indonesia’s US$17 Billion Pertamina Graft Scandal: Key Executives Sentenced

Jakarta, Indonesia – A Jakarta court sentenced nine individuals, including former executives of Indonesia’s state-owned energy firm Pertamina, to prison terms in connection with a massive corruption case involving crude oil and refinery product governance. The scandal, estimated to have caused losses of up to US$17 billion, unfolded between 2018, and 2023.

Sentencing Details

The verdict, delivered after a nearly 12-hour hearing, saw sentences ranging from nine to fifteen years in prison. The panel of judges was chaired by Fajar Kusuma Aji.

Former Pertamina Patra Niaga Executives

Riva Siahaan, former President Director of PT Pertamina Patra Niaga (2023), and Maya Kusuma, former Marketing and Trading Director, each received nine-year sentences. Edward Corne, Vice President of Trading Products at Pertamina Patra Niaga (2023–2025), was sentenced to ten years. All three were fined Rp1 billion (approximately US$60,000) each, with a subsidiary penalty of 190 days’ imprisonment if the fine is not paid.

Prosecutors had initially sought a 14-year sentence for Riva Siahaan. The court found that Riva and Maya granted preferential treatment to foreign companies, including BP Singapore Pte Ltd and Sinochem International Oil Pte Ltd, in refinery product import projects based on recommendations from Edward Corne. Edward Corne leaked the owner’s estimated price (HPS) to partner companies, allowing them to manipulate bids and secure tenders.

The judges ruled that while guilty of corruption, the three were not ordered to pay restitution as they were not found to have personally profited from the crime.

Additional Pertamina Executives

Yoki Firnandi, former President Director of PT Pertamina International Shipping (2022–2024), and Sani Dinar Saifudin, Director of Feedstock and Product Optimization at PT Kilang Pertamina Internasional (2022–2025), were each sentenced to nine years in prison. Agus Purwono, Vice President of Feedstock Management at Kilang Pertamina Internasional (2023–2024), received a ten-year sentence. Each was also fined Rp1 billion.

Private Sector Figures

The heaviest sentences were handed down to private sector defendants. Muhammad Kerry Andrianto Riza, beneficial owner of PT Navigator Khatulistiwa and son of Interpol-wanted oil tycoon Mohammad Riza Chalid, was sentenced to fifteen years in prison and fined Rp1 billion. He was also ordered to pay Rp2.9 trillion (approximately US$173 million) in restitution, with a five-year prison extension if unpaid.

Gading Ramadhan Juedo, commissioner of PT Pelayaran Mahameru Kencana Abadi, and Dimas Werhaspati, commissioner of PT Jenggala Maritim Nusantara, each received fourteen-year sentences and were fined Rp1 billion.

State Losses and Potential Appeals

The court determined that the collective actions of the defendants resulted in significant financial losses to the state, as calculated by Indonesia’s Supreme Audit Agency (BPK). The indictment cited alleged losses of Rp285 trillion, while court findings referenced state financial losses of $2.7 billion and Rp25.4 trillion.

Judges emphasized the importance of evaluating business decisions holistically, considering procurement processes, benefits to Pertamina, and adherence to good corporate governance principles.

Prosecutors indicated they would review the verdict to determine whether to file an appeal, citing concerns that the sentences were lower than requested and discrepancies in the calculations of state economic losses and restitution amounts.

Background

The Pertamina scandal involved the procurement of low-quality imported fuel at inflated prices and other corrupt practices, according to the Attorney General’s Office. Mohammad Riza Chalid, Kerry Riza’s father, is currently wanted by Interpol for his alleged involvement in the same corruption probe and has fled Indonesia.