Former Pertamina Patra Niaga CEO Demanded 14 Years in Prison

Jakarta (ANTARA) - The CEO of PT Pertamina Patra Niaga (PPN) for the period 2021-2023, Alfian Nasution, has been demanded a prison sentence of 14 years in connection with an alleged corruption case regarding the governance of crude oil and refinery products at PT Pertamina (Persero) during the period 2013-2024.

Public prosecutor (JPU) from the Attorney General’s Office, Andi Setyawan, is convinced that Alfian was involved in committing corruption jointly with the Director of Marketing and Trading at Pertamina for the period 2012-2014, Hanung Budya Yuktyanta, as well as the Business Development Manager of Trafigura Pte, Ltd for the period 2019-2021, Martin Haendra Nata.

“Declaring that the defendants have been legally and convincingly proven guilty of committing the criminal act of corruption carried out jointly,” stated the JPU during the reading of the indictment at the Corruption Court at the Central Jakarta District Court on Thursday.

In addition, the three defendants are also demanded to be imposed fines of Rp1 billion each, with the provision that if not paid, it will be replaced (subsidiary) with imprisonment for 190 days.

The JPU also demands that the three be imposed additional penalties in the form of repayment of replacement money amounting to Rp5 billion subsidiary 7 years imprisonment each for Alfian and Martin, while for Hanung subsidiary 4 years imprisonment.

Thus, the three defendants are believed to have violated Article 603 in conjunction with Article 20 letter c of the Criminal Code jo. Article 18 of Law No. 31 of 1999 on the Eradication of Criminal Acts of Corruption as amended and supplemented by Law No. 20 of 2001.

Before issuing the demand, the JPU considered several aggravating and mitigating factors. The aggravating factors mentioned include the actions of the defendants not supporting the government’s programme in organising a clean and free state from corruption, collusion, and nepotism (KKN).

Furthermore, the three are also deemed to have caused very significant losses to state finances and the economy in that case.

In that case, Alfian is accused of causing state financial losses amounting to Rp285.18 trillion. He is suspected of committing or participating in unlawful acts in three stages of the governance of crude oil and refinery products.

The three stages in question are in the procurement of fuel terminal leasing by Pertamina, the provision of compensation for Special Assignment Fuel Type (JBKP) Research Octane Number (RON) 90 by the government to Pertamina Patra Niaga in 2022 and 2023, as well as the sale of non-subsidised diesel to PT PPN in 2020-2021.

It is stated that Alfian’s actions were carried out jointly with the Director of Central Marketing and Trading at Pertamina Patra Niaga for the period 2020-2021, Hasto Wibowo; Senior Vice President (SVP) of Integrated Supply Chain (ISC) at Pertamina for the period 2017-2018, Toto Nugroho; Hanung; as well as Vice President (VP) of Crude, Product Trading, and Commercial (CPTC) for the period 2019-2020, Dwi Sudarsono.

Furthermore, jointly with the Director of Gas, Petrochemicals, and New Business at PT Pertamina International Shipping (PIS) for the period 2024-2025, Arief Sukmara; Business Development Manager of PT Mahameru Kencana Abadi, Indra Putra; as well as Martin.

In the procurement of fuel terminal leasing by Pertamina, the eight defendants have enriched the Commissioner of PT Pelayaran Mahameru Kencana Abadi (PMKA), Gading Ramadhan Juedo, the beneficial owner of PT Navigator Khatulistiwa, Muhammad Kerry Andrianto Riza, as well as the beneficial owner of PT Orbit Terminal Merak, Mohammad Riza Chalid, by Rp2.9 trillion in the leasing activities of the Merak Fuel Terminal (TBBM).

Meanwhile, in the sale of non-subsidised diesel to PT PPN in 2020-2021, the eight defendants have enriched PT Adaro Indonesia by Rp630 billion.

Thus, the state losses caused in that case amount to Rp285.18 trillion. The details of state losses include state financial losses of USD 2.73 billion and Rp25.44 trillion; state economic losses of Rp171.99 trillion; as well as illegal profits of USD 2.62 billion.

The state financial losses in question consist of USD 5.74 billion in the procurement of imports of refinery products or fuel as well as Rp2.54 trillion in the sale of non-subsidised diesel during the period 2021-2023.

Meanwhile, the state economic losses constitute the overpricing of fuel procurement which impacts the economic burden arising from that price as well as illegal profits obtained from the difference between the import acquisition price of fuel exceeding the quota and the acquisition price of crude oil and fuel from domestic purchases.

For their actions, the defendants face penalties as stipulated in Article 2 paragraph (1) or Article 3 jo. Article 18 of the Anti-Corruption Law jo. Article 55 paragraph (1) first of the Criminal Code.