Fuel Corruption

gamehot24h.com – In February 2025, Indonesia’s state-owned energy company, Pertamina, became embroiled in a significant corruption scandal involving the alleged adulteration of Pertamax fuel (Research Octane Number 92) with lower-quality Pertalite (RON 90). This malpractice not only deceived consumers but also resulted in substantial financial losses for the state.

Allegations and Arrests:

The Attorney General’s Office (AGO) launched an investigation into Pertamina’s operations between 2018 and 2023, uncovering alleged corrupt practices that led to state losses estimated at Rp 193.7 trillion (approximately US$12 billion). Seven individuals were named as suspects, including high-ranking officials within Pertamina’s subsidiaries:

  • Riva Siahaan, President Director of Pertamina Patra Niaga, responsible for retail sales and fuel imports.
  • Yoki Firnandi, CEO of Pertamina International Shipping.
  • Sani Dinar Saifuddin, Director at Kilang Pertamina Internasional.
  • Agus Purwono, Vice President of Feedstock Management at Kilang Pertamina Internasional.
  • Muhammad Kerry Andrianto Riza, Beneficial Owner of PT Navigator Khatulistiwa.
  • Dimas Werhaspati, Commissioner at PT Navigator Khatulistiwa and PT Jenggala Maritim.
  • Gading Ramadhan Joedo, Commissioner at PT Jenggala Maritim and President Director of PT Orbit Terminal Merak.

The AGO alleges that these executives bypassed regulations requiring Pertamina to prioritize local crude oil purchases, opting instead for costly imports under the pretext that domestic crude did not meet refinery specifications. Additionally OLYMPUS88, Pertamina International Shipping is accused of inflating crude oil transportation costs by 13% to 15%, benefiting private sector collaborators.

Fuel Adulteration Scheme:

A critical aspect of the scandal involves the alleged blending of subsidized RON 90 gasoline (Pertalite) with higher-quality RON 92 gasoline (Pertamax). This mixture was then sold at the price of Pertamax, deceiving consumers who believed they were purchasing premium fuel. Such practices not only defrauded consumers but also posed potential risks to vehicle engines, as lower-octane fuels can cause knocking and reduced performance.

Pertamina’s Response:

In light of these allegations, Pertamina has publicly apologized and pledged to enhance its governance and transparency. CEO Simon Aloysius Mantiri stated that the company would address the identified flaws to prevent further negative impacts on both the company and the state budget. Pertamina also expressed its commitment to cooperating with the energy ministry to ensure continued transparency and energy security.

Public and Government Reaction:

The scandal has elicited strong reactions from both the public and government officials. There are calls for strict punishment and a major cleanup within Pertamina to restore public trust. The House of Representatives has summoned Pertamina officials and private fuel companies to address the alleged fuel oil mixing and other corrupt practices.

Conclusion:

The Pertamina fuel adulteration scandal has shed light on significant governance issues within Indonesia’s state-owned enterprises. As investigations proceed, it is imperative for Pertamina to implement robust reforms to restore public trust and ensure the integrity of its operations.