Former PGN CEO sentenced to four years in prison for gas trading corruption
The former president director of PT Perusahaan Gas Negara (PGN) Tbk, Hendi Prio Santoso, has been sentenced to four years in prison after being found guilty of corruption related to a gas sale and purchase cooperation at PT PGN.
Presiding Judge Ni Kadek Susantiani, in a hearing at the Corruption Court at the Central Jakarta District Court on Thursday, stated that Hendi was proven to have received 500,000 Singapore dollars from Arso Sadewo in connection with the disbursement of funds under the gas sale and purchase cooperation.
“The defendant is legally and convincingly proven guilty of committing corruption jointly, as charged in the first alternative indictment,” said Ni Kadek while reading the verdict.
The panel of judges stated that Hendi’s actions, together with several other parties, resulted in state losses of 15 million US dollars, equivalent to Rp255 billion using an exchange rate of Rp17,000 per US dollar.
The losses were related to a gas sale and purchase cooperation agreement with an advance payment scheme of 15 million US dollars at PT PGN.
In addition to the prison sentence, the panel of judges imposed a fine of Rp200 million, with the provision that if it is not paid, it will be replaced by 80 days of imprisonment.
Hendi was also given an additional penalty in the form of payment of replacement money amounting to 500,000 Singapore dollars, taking into account the same amount of money that had been deposited into the Corruption Eradication Commission (KPK) escrow account.
Hendi was found guilty of violating Article 603 in conjunction with Article 20 of the National Criminal Code in conjunction with Article 18 of Law Number 31 of 1999 as amended by Law Number 20 of 2001 concerning the Eradication of Corruption.
Before handing down the verdict, the panel of judges considered a number of aggravating and mitigating circumstances.
The aggravating factors included that Hendi’s actions caused substantial state losses, did not support the government’s anti-corruption programme, and were carried out through channels outside official corporate mechanisms, thereby damaging the governance of state-owned enterprises.
The panel of judges also considered that Hendi was not forthcoming about the money he received.
The mitigating circumstances were that Hendi had never been convicted, had family dependents, had returned the money amounting to 500,000 Singapore dollars, and had behaved politely during the trial.
The panel of judges also took into account that Hendi was not the party obliged to conduct due diligence or assess the adequacy of the collateral value, while the negligence related to this matter was attached to PT PGN.
“Taking into account the aggravating and mitigating circumstances, the panel of judges considers that the sentence imposed is appropriate and fair for the defendant and the public,” said Ni Kadek.
The verdict is one year lighter than the sentence demanded by the public prosecutor.
Previously, the prosecutor had demanded that Hendi be sentenced to five years in prison and a fine of Rp200 million, with a subsidiary sentence of 80 days in prison.
The prosecutor did not demand payment of replacement money because the amount of 500,000 Singapore dollars that had been deposited into the KPK escrow account was taken into account.