Ahok Expresses Surprise at LNG Sales Loss Projections Upon Joining Pertamina
Jakarta — Basuki Tjahaja Purnama (Ahok), who served as Chairman of PT Pertamina (Persero) from 2019 to 2024, testified that he was surprised to discover significant projected losses from liquefied natural gas (LNG) sales when he first took office. According to information revealed during routine meetings of the board of directors and commissioners, Pertamina had entered into LNG purchase contracts lacking commitments from end-users.
“There was a loss of over $100 million, and it was projected that in 2020 there would be additional cargo without a buyer. If that happened, there could be losses of around $300 million,” Ahok stated while testifying at the Corruption Court (PN Jakpus) on Monday.
As the newly appointed commissioner, Ahok instructed internal auditors to investigate the underlying issues. He cited the example of an LNG purchase case from Mozambique that was found to lack end-user commitment. When he questioned the then-president director of Pertamina about why the contract was signed without a confirmed buyer, the response was that reports from subordinates indicated commitment. However, when auditors conducted their investigation, it turned out to be merely a preliminary study.
Ahok also questioned why there were so many LNG purchases from Mozambique. The president director responded that the purchases were based on the Indonesian Gas Balance (NGI), a comprehensive document prepared by the Ministry of Energy and Mineral Resources outlining long-term projections for national natural gas supply and demand.
He explained that the NGI documents not only recorded LNG requirements but also natural gas, coal bed methane (CBM), and pipeline gas. Therefore, a more thorough investigation was needed to determine whether these requirements actually needed to be met. “The Indonesian Gas Balance cannot be used to make purchases, especially without confirmed buyer commitments. Gas cannot simply be disposed of,” Ahok emphasised.
Ahok testified in a corruption case involving the 2011-2021 procurement of liquefied natural gas from Corpus Christi Liquefaction LLC (CCL) at Pertamina and other related institutions. The case implicates Hari Karyuliarto, Pertamina’s Director of Gas from 2012-2014, and Yenni Andayani, Vice President of Strategic Planning and Business Development in the Gas Directorate from 2012-2013.
Both defendants are alleged to have caused state financial losses of $113.84 million (approximately Rp1.77 trillion) through their actions, which enriched former Pertamina President Director Galaila Karen Kardinah (Karen Agustiawan) by Rp1.09 billion and $104,016, and enriched CCL by $113.84 million.
The alleged unlawful conduct by both defendants includes: Hari allegedly failed to establish guidelines for the LNG procurement process from international sources and continued processing LNG procurement from Cheniere Energy Inc.; and Yenni proposed that Hari sign a Circular Directors’ Meeting Minutes regarding the decision to sign LNG purchase agreements for Train 1 and Train 2 from CCL without supporting economic feasibility studies, risk assessments, and mitigation measures, and without confirmed LNG buyers bound by contract.
Both defendants’ actions are regulated and sanctioned under Article 2(1) or Article 3 of Law Number 31 of 1999 concerning the Eradication of Corruption Offences as amended by Law Number 20 of 2001, in conjunction with Article 55(1) and Article 64(1) of the Indonesian Criminal Code.