By Alexander Miller, consultant in energy markets. Eurasia Business News, July 11, 2025. Article n°1611

Indonesia has significantly widened its $17-billion corruption probe into Pertamina, the state energy company, naming nine new suspects on July 10. This brings the total number of individuals implicated in the case to eighteen, making it one of the largest corruption scandals in the country’s history.

Key developments and details:

The new suspects include six former Pertamina executives and three private-sector figures, among them the influential oil trader Mohammad Riza Chalid (MRC), who is linked as the beneficial owner of PT Navigator Khatulistiwa and PT Orbit Terminal Merak.

The probe covers alleged mismanagement and corruption in crude oil and refined product trading at Pertamina and its subsidiaries, as well as several oil contractors, between 2018 and 2023.

The Attorney General’s Office (AGO) accuses the suspects of irregularities in oil procurement, including improper imports and exports, vessel and terminal leasing, and inflated compensation schemes, which have allegedly caused state losses of about 285 trillion rupiah (approximately $17.58 billion).

Eight of the nine newly named suspects have been arrested for 20 days, starting Thursday. One, identified as businessman M. Riza Chalid, remains at large and is reportedly outside Indonesia, probably in Singapore.

The suspects are charged under Articles 2 and 3 of the 1999 Anti-Corruption Law (as amended in 2001), in conjunction with Article 18 of the same law and Article 55 of the Indonesian Criminal Code.

The AGO has also approached trading firms in Singapore for questioning, as part of efforts to gather further evidence.

The scandal has intensified calls for reform in Indonesia’s oil and gas sector, which has long struggled with transparency and governance issues. Pertamina has stated it is cooperating with authorities and respects the ongoing legal process.

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© Copyright 2025 – Eurasia Business News. Article no. 1611.