Indonesia state-owned gas company CEO apologizes following corruption allegation News
Indonesia state-owned gas company CEO apologizes following corruption allegation

Indonesia’s state-owned gas company Pertamina pledged to improve transparency following an investigation into the company by the country’s attorney general following allegations of embezzlement.

Speaking to the media, the president of Pertamine conveyed his deepest apologies to the Indonesian people for the events that have occurred. He thanked the Attorney General’s Office for its investigations into the matter and pledged to provide additional data to help with the investigation as necessary. Mantiri has insisted the company will abide by “good corporate governance principles” in the future and emphasized all tested petroleum complied with ministry standards. The Indonesian minister of state-owned enterprises, Erick Thohir, has also announced they will completely “reassess PT Pertamina’s structure and identify necessary reforms.”

Pertamina is being investigated by the attorney general for a series of corrupt practices dating to 2018. The attorney general found that a Pertamina subsidiary, Pertamina Patria Niga, was purchasing RON 90 crude oil and mixing it into RON 92 crude oil, systematically diluting higher octane oil with a lower octane solution while selling the gas at the higher octane price. Further, per local media, Patria Niga employees were embezzling biofuel by using employee IDs to redeem large quantities of subsidized fuel for unauthorized private parties. The attorney general estimates a total damage of approximately 193.7 trillion Indonesian rupiahs.

Seven Pertamina employees have been arrested for at least 20 days as the investigation proceeds. The attorney general is currently continuing to investigate Pertamina and its subsidiaries.

Under Article 17 of the United Nations Convention Against Corruption, signatories are obliged to criminalize embezzlement, misappropriation any other forms of diversion by public officials, a treaty Indonesia has ratified.