The Indonesian Attorney General’s Office (AGO) has intensified its investigation into the corruption scandal at state-owned energy giant Pertamina, following the recent arrests of several top executives. In late February, the Indonesian Attorney General’s Office detained and formally charged five executives from subsidiaries of the state-owned oil and gas giant Pertamina. Several executives from private companies were also involved. Authorities claim that between 2018 and 2023, the accused orchestrated a scheme to deceive the public by importing oil at excessively high prices and selling diluted gasoline at inflated rates, resulting in an estimated $12 billion loss to national revenue losses. Authorities are now scrutinizing additional procurement practices and refining operations, as more evidence emerges of systematic fraud within Pertamina and its subsidiaries.
In response to the scandal and growing scrutiny from foreign corporate industry partners (including U.S.-based petroleum conglomerates), Pertamina has established a Crisis Center Team to review its crude oil import and fuel procurement processes. CEO Simon Aloysius Mantiri has reaffirmed the company’s commitment to Good Corporate Governance (GCG) and pledged full cooperation with authorities to prevent similar issues in the future as to not put into question ongoing and future projects and contracts. Meanwhile, Pertamina’s Deputy CEO Wiko Migantara announced that the company is reassessing its fuel import policies and strengthening oversight mechanisms to restore public trust. Despite the controversy, Pertamina has assured the public that fuel supply remains stable, and operations continue unphased.
