Indonesian Courts Hand Down Heavy Prison Sentences for Pertamina Executives in Massive Oil Graft Case

JAKARTA, Investortrust.id — A Jakarta tribunal has sentenced the former head of Indonesia’s state shipping arm to nine years in prison, marking a climactic chapter in a sprawling corruption saga that has rattled the nation’s energy sector. Yoki Firnandi, the former President Director of PT Pertamina International Shipping (PIS), was found guilty of orchestrating a series of fraudulent maneuvers in crude oil and refinery product management between 2018 and 2023.

Beyond the prison term, the court slapped YokiFirnandi with a fine of Rp 1 billion ($64,000), or an additional 190 days of incarceration. The verdict, delivered in the early hours of Friday at the Jakarta Anti-Corruption Court (Tipikor), signals a hardening stance by Indonesian authorities against white-collar crime in state-owned enterprises.

The case serves as a stark reminder of the "headwinds" facing Indonesia's efforts to modernize its energy infrastructure. For decades, the "oil mafia"—a colloquial term for a web of well-connected middlemen—has been accused of skimming profits from the archipelago’s vast fuel imports. This trial specifically exposes how administrative loopholes were weaponized to favor private interests over the national treasury.

A Syndicate of Insiders

The courtroom was a revolving door of disgraced elite. Alongside Yoki, the court sentenced Agus Purwono, the former Vice President of Feedstock Management at PT Kilang Pertamina Internasional (KPI), to 10 years. Sani Dinar Saifuddin, a former director at the same refinery unit, received nine years.

The trio’s downfall was linked to their collaboration with Muhammad Kerry Adrianto Riza, the "beneficial owner" of PT Orbit Terminal Merak (OTM) and the son of the infamous oil tycoon Riza Chalid. Mr. Riza was sentenced to 15 years in prison, the heaviest penalty of the group.

The scheme was sophisticated in its simplicity. According to court records, the defendants rigged the chartering process for Suezmax tankers—large vessels capable of carrying up to one million barrels of oil. By inserting specific "domestic transport requirement" clauses into tender documents, they effectively disqualified foreign competitors, ensuring the contracts fell into the hands of a company controlled by Mr. Riza and his associates.

Terminal Deceptions

The corruption extended from the sea to the shore. The court detailed how the group engaged in a fraudulent lease agreement for the Merak Fuel Terminal. Kerry Riza and his partners allegedly offered the facility to Pertamina’s marketing division despite knowing the terminal was actually owned by a third party, PT Oiltanking Merak.

In his ruling, Presiding Judge Fajar Kusuma Aji noted that Kerry Riza’s actions failed to support the government’s intensive anti-corruption programs. While the 15-year sentence was shorter than the 18 years sought by prosecutors, the court ordered Kerry Riza to pay Rp 2.9 trillion ($185 million) in restitution—a staggering sum, though far below the initial $850 million requested by the state.

Losses in the Billions

The fallout reached another major Pertamina subsidiary, PT Pertamina Patra Niaga. Its former President Director, Riva Siahaan, was also sentenced to nine years for his role in a separate but related procurement fraud. Judges found that Riva’s mismanagement led to state losses totaling Rp 9.42 trillion ($602 million).

Riva was found to have provided "white-glove" treatment to global trading giants, including BP Singapore and Sinochem International Oil. By leaking confidential "alpha" pricing information and granting illegal bid extensions, the executives ensured these firms won tenders for high-octane gasoline imports in 2023.

While the defense argued a lack of "malicious intent" and emphasized that many defendants did not personally pocket the missing trillions, the court remained unmoved. The rulings emphasize that in the high-stakes world of Indonesian energy, negligence and cronyism carry a price tag measured in years, not just dollars.