Judge's Considerations in Sentencing Two Defendants to 4.5 and 3.5 Years in Prison in LNG Corruption Case
The sentencing hearing for the alleged LNG corruption case was held at the Jakarta Corruption Court on Monday (4/5/2026). The two defendants in this case are former Director of Gas at PT Pertamina, Hari Karyuliarto, and former VP of Strategic Planning Business Development in Pertamina’s Gas Directorate, Yenni Andayani.
“Having considered that the series of actions by the defendants is not merely in the realm of administration alone, but the panel of judges opines that these administrative provisions actually serve as parameters for BUMN management, in this case PT Pertamina’s management, to conduct its business properly and correctly in accordance with the principles of good corporate governance,” stated member judge Hiashinta Fransiska Manalu.
The judge stated that the principles of good corporate governance are transparency, accountability, responsibility, independence, and fairness. The judge noted that the financial loss to the state from this procurement amounted to USD 113,839,186.60.
“It has been proven that they abused their positions as described in the considerations above, causing state losses amounting to USD 113,839,186.60 based on the investigative audit report of the Financial Audit Board of the Republic of Indonesia in calculating state losses from the LNG procurement of Corpus Christi Liquefaction at PT Pertamina and related institutions,” said the judge.
The following are the details of Hari Karyuliarto’s violations as read by the judge:
Failing to prepare guidelines for the LNG procurement process from international sources and still proceeding with the LNG procurement from Cheniere Energy.
Approving the Corpus Christi Liquefaction term sheet, which included a price formula, without considering the price that prospective domestic buyers were willing to pay.
Only seeking board approval circularly before signing the LNG Train 1 sales and purchase agreement without proposing to the board for written responses and shareholders’ approval.
Approving the signing of the LNG Corpus Christi Train 1 sales and purchase agreement without any binding LNG buyer.
Failing to prepare and attach economic feasibility studies, risks, and mitigations, and not attaching the draft SPA in the memorandum requesting approval from the board regarding the decision to sign the LNG Corpus Christi Train 1 sales and purchase agreement.
Conducting discussions with Cheniere Energy regarding plans to change LNG since March 2014, based on potential demand rather than buyers who had signed agreements.
Approving a higher price formula for Train 2 without risk studies or economic analysis to ensure that the LNG Corpus Christi Train 2 price was competitive compared to LNG prices from domestic sources or other sources.
Proposing to witness Galaila Karen Kardinah to sign a power of attorney addressed to defendant 1 to sign the LNG SPA Train 2 without board approval, written responses from the board of commissioners, and shareholders’ approval, and without any binding LNG buyer for Corpus Christi Liquefaction.
Signing the LNG SPA Train 2 without board approval, written responses from the board of commissioners, and shareholders’ approval, and without any binding LNG buyer for Corpus Christi Liquefaction.
The following are the details of Yenni Andayani’s violations as read by the judge:
Proposing to defendant 1 Hari Karyuliarto to sign the board meeting minutes regarding the decision to sign the LNG Train 1 and Train 2 sales and purchase agreements from Corpus Christi Liquefaction without supporting economic studies, risk assessments, and mitigations in the LNG Corpus Christi Liquefaction procurement process, and without any binding LNG buyer for Corpus Christi Liquefaction.
Signing the Sales and Purchase Agreement Train 1 for LNG purchase between PT Pertamina (Persero) and Corpus Christi Liquefaction on 4 December 2013 based on a power of attorney from witness Galaila Karen Kardinah, even though not all Pertamina directors had signed the board meeting minutes, and without written responses from Pertamina’s board of commissioners and shareholders’ approval, and without any binding LNG buyer for Corpus Christi Liquefaction.
Previously, Hari Karyuliarto was sentenced to 4.5 years in prison. The judge stated that Hari was proven guilty of committing corruption jointly in the liquefied natural gas (LNG) or natural gas procurement.
“Declaring defendant I Hari Karyuliarto and defendant II Yenni Andayani proven legally and convincingly guilty of committing the criminal act of corruption jointly and continuously as charged in the second indictment of the Public Prosecutor,” stated the chief judge Suwandi while reading the verdict at the Central Jakarta Corruption Court on Monday (4/5).
“Imposing a prison sentence on Defendant I Hari Karyuliarto of 4 years and 6 months,” added the judge.
The judge also fined Hari Rp 200 million. If the fine is not paid, it will be replaced with 80 days of imprisonment.
In this hearing, the judge also read the verdict for Yenni Andayani. The judge sentenced Yenni to 3.5 years in prison and a fine of Rp 200 million subsidiary 80 days of imprisonment.
“And defendant II Yenni Andayani with a prison sentence of 3 years and 6 months,” stated the judge.
The judge stated that Hari and Yenni were proven guilty of abusing their authority. The judge stated that Hari and Yenni’s actions in this case have caused state financial losses of USD 113,839,186.60.
Aggravating circumstances for the sentences of Hari and Yenni include that their actions are deemed not to support the government’s programme in eradicating corruption. Mitigating circumstances are that Hari and Yenni are each over 60 years old and have no prior convictions.
The judge stated that Hari Karyuliarto and Yenni Andayani are guilty of violating Article 3 in conjunction with the Corruption Eradication Law in conjunction with Article 55 paragraph 1 (1) of the Criminal Code in conjunction with Article 64 paragraph 1 of the Criminal Code as charged in the second indictment.