Indonesian Political, Business & Finance News

Former Pertamina Patra Niaga CEO Faces Corruption Trial Over Oil Management

| Source: ANTARA_ID Translated from Indonesian | Legal
Former Pertamina Patra Niaga CEO Faces Corruption Trial Over Oil Management
Image: ANTARA_ID

Jakarta (ANTARA) - The CEO of PT Pertamina Patra Niaga (PPN) for the period 2021-2023, Alfian Nasution, faced the prosecution’s demands in a trial for alleged corruption in the management of crude oil at the Corruption Court of the Central Jakarta District Court on Thursday.

“The trial for the defendant Alfian Nasution, agenda of demands,” said the spokesperson for the Central Jakarta District Court, Andi Saputra, to reporters.

The hearing was chaired by Judge Adek Nurhadi and scheduled for 09:20 WIB in the Kusuma Atmadja courtroom.

In addition to Alfian, the reading of the prosecution’s demands was also held against the Marketing and Trading Director of Pertamina for the period 2012-2014, Hanung Budya Yuktyanta, and the Business Development Manager of Trafigura Pte, Ltd for the period 2019-2021, Martin Haendra Nata, in the same proceedings.

In the alleged corruption case concerning the management of crude oil and refinery products of PT Pertamina (Persero) for the period 2013-2024, Alfian is accused of causing state financial losses amounting to Rp285.18 trillion.

He is alleged to have committed or participated in unlawful acts in three stages of the management of crude oil and refinery products.

The three stages in question are the procurement of fuel terminal leasing by Pertamina, the provision of compensation for special assignment fuel (JBKP) Research Octane Number (RON) 90 by the government to Pertamina Patra Niaga in 2022 and 2023, and 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 Central Marketing and Trading Director of Pertamina Patra Niaga for the period 2020-2021, Hasto Wibowo; the Senior Vice President (SVP) of Integrated Supply Chain (ISC) Pertamina for the period 2017-2018, Toto Nugroho; Hanung; and the 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 of PT Pertamina International Shipping (PIS) for the period 2024-2025, Arief Sukmara; the Business Development Manager of PT Mahameru Kencana Abadi, Indra Putra; and Martin.

In the procurement of fuel terminal leasing by Pertamina, the eight defendants had enriched the Commissioner of PT Pelayaran Mahameru Kencana Abadi (PMKA), Gading Ramadhan Juedo, the beneficial owner of PT Navigator Khatulistiwa, Muhammad Kerry Andrianto Riza, and 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).

Then, in the provision of JBKP RON 90 compensation by the government to Pertamina Patra Niaga in 2022 and 2023, the actions of the defendants had enriched Pertamina Patra Niaga by Rp13.12 trillion.

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

Thus, the state losses caused in the case amount to Rp285.18 trillion. The breakdown of state losses includes state financial losses of 2.73 billion US dollars (USD) and Rp25.44 trillion; state economic losses of Rp171.99 trillion; and illegal gains of 2.62 billion USD.

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

Meanwhile, the state economic losses represent the overpricing in fuel procurement which impacts the economic burden arising from such prices, and the illegal gains were 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 in conjunction with Article 18 of Law No. 31 of 1999 on the Eradication of Corruption Crimes as amended and supplemented by Law No. 20 of 2001 jo. Article 55 paragraph (1) first of the Criminal Code.

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