INDONESIA’S attorney general’s office said on Tuesday (Feb 25) that it had arrested several executives from subsidiaries of state-owned energy firm Pertamina for alleged corruption over oil imports that had cost the country nearly US$12 billion.
Seven suspects, including at least four Pertamina officials, were arrested on Monday, it added in a statement.
They are accused of working together between 2018 and 2023 to import crude from overseas suppliers at higher prices rather than source it domestically as mandated by Indonesian law.
“When compared to the production price of domestic crude oil, the price of the imported goods showed a significant price component disparity,” the statement said.
“Due to the law-breaking acts, the country has suffered losses amounting to 193.7 trillion rupiah (S$15.9 billion),” the attorney general’s office said.
Crude oil must be attempted to be sourced from domestic contractors first before it is imported, it noted.
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The suspects face up to 20 years in prison if found guilty and a fine of one billion rupiah.
Pertamina said in a statement that it would respect the investigation. “Pertamina is ready to cooperate with the relevant authorities and hopes the legal process will proceed smoothly while upholding the principle of the presumption of innocence,” it informed.
Indonesia has long struggled with graft and in recent years has arrested scores of public officials for corruption. In 2023, a former communications minister was jailed for 15 years after being found guilty of corruption in a case that cost the country more than US$500 million in losses. AFP
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