Former PGN CEO Hendi Prio Charged with Causing State Loss of 15 Million USD

JAKARTA, KOMPAS.com - Former President Director of PT Perusahaan Gas Negara (PGN) Tbk for the period 2008-2017, Hendi Prio Santoso, has been charged with causing a loss to the state of 15 million US dollars in a corruption case concerning the sale and purchase of gas between PT PGN and PT Inti Alasindo Energy (PT IAE). “The act that harms the state’s finances or economy, namely harming the state’s finances by 15,000,000 US dollars,” stated one of the Public Prosecutors (JPU) while reading the indictment at the Jakarta Corruption Court, Thursday (16/4/2026). This payment was approved by Hendi Prio even though there was no prior cooperation work with PT IAE. The advance payment was made through a tiered gas sales agreement, whereas this tiered gas sales scheme is prohibited by the Minister of Energy and Mineral Resources of the Republic of Indonesia. The 15 million US dollar advance payment became one of the conditions to facilitate the acquisition process. “The provision of the advance payment or the gas sale and purchase was not included in the 2017 and 2018 RKAP of PT PGN (Persero) Tbk and there was no due diligence on the provision of that advance payment,” said the prosecutor. On one hand, PT IAE needed funds to pay off several bank debts. The provision of the advance payment was carried out to assist PT IAE, part of the Isargas Group. The provision of the advance payment is illegal considering that PGN is not a company that can provide funding. “Engaging in activities to obtain funds from PT PGN (Persero) Tbk for the Isargas Group with the aim of helping to settle the Isargas Group’s debts, whereas PT PGN (Persero) Tbk is not a funding company or financial institution or financing that can provide loan funds,” explained the prosecutor. “Enriching the defendant Hendi Prio Santoso by 500,000 Singapore dollars, Yugi Prayanto by 20,000 US dollars, and Isargas Group by 14,412,700 US dollars,” the prosecutor added. For their actions, the defendants are threatened with Article 2 paragraph (1) or Article 3 in conjunction with 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 in conjunction with Article 55 paragraph (1) first of the Criminal Code. Additionally, former Commercial Director of PT PGN Danny Praditya and former Commissioner of PT IAE Iswan Ibrahim have each been sentenced to 6 and 5 years in prison in separate case files.