Kerry Riza Reveals That Without OTM Fuel Terminal, Pertamax Reserves Would Decrease by 3 Days
Beneficial owner of PT Orbit Terminal Merak (OTM) Muhamad Kerry Adrianto Riza revealed the chronology of acquiring the fuel terminal from PT Oiltanking Merak and its subsequent lease to PT Pertamina (Persero). This was stated by Kerry Riza when presented as a witness in the trial for alleged corruption in the management of oil and refinery products at PT Pertamina, with defendants being former President Director of PT Pertamina Patra Niaga Alfian Nasution and former Director of Marketing and Trading at Pertamina Hanung Budya Yuktyanta at the Jakarta Corruption Court on Tuesday (31/3).
Kerry Riza explained that at the time, his colleague Dani Subrata informed him of plans by Oiltanking GmbH and PT Merak Terminal Mandiri to sell their shares in PT Oiltanking Merak. Dani Subrata, who also owned shares in PT Oiltanking Merak (PT Merak Terminal Mandiri), highlighted the advantages of the fuel terminal owned by PT Oiltanking Merak.
“After I learned about it, he (Dani Subrata) explained ‘This is good, Ker, the tanks are international standard, really top-notch.’ Alright then, let’s buy it together. Okay, that was early 2013, I think,” Kerry recounted.
Kerry claimed he never discussed the share acquisition plan in PT Oiltanking Merak with his father Riza Chalid or his uncle Irawan Prakoso.
“Regarding the acquisition discussion, did you ever talk about it with Mr Irawan Prakoso?” the prosecutor asked.
“Never,” Kerry replied.
“With your parent, Mr Riza Chalid?”
“Never. Never,” Kerry firmly stated.
Nevertheless, Kerry admitted that Riza Chalid served as a personal guarantee for the acquisition funding. Kerry explained that BRI had requested a personal guarantee.
“So that was a request from BRI. Since BRI asked, I brought them to meet my father. The meeting was with a notary too,” he clarified.
At that time, Riza Chalid only learned of Kerry’s planned cooperation with Pertamina. Riza Chalid merely prayed for his son’s endeavours to go smoothly.
“Did you tell Mr Riza Chalid that after the acquisition, it would be leased or cooperated with PT Pertamina?” the prosecutor asked.
“Yes, I briefly mentioned it. His response was ‘Insyaallah it will go smoothly’,” Kerry revealed.
Kerry explained that the acquisition plan was his personal initiative along with Dani Subrata. Kerry partnered with a Singapore-based entity incorporated in Hong Kong, namely Oro Storage (HK) Limited. After the acquisition, Kerry and Dani Subrata through PT Tangki Merak became the majority shareholders with a 90% composition (Dani Subrata 30% and Kerry 70%), and Oro Storage (HK) Limited 10% in PT Oiltanking Merak (which was later renamed PT Orbit Terminal Merak in 2015).
Before being leased to Pertamina, Kerry said the PT OTM fuel terminal was offered to several other companies. Among them were Petronas, Shell, and others. However, only Pertamina responded at the time.
This was followed up by the President Director of PT OTM, Gading Ramadhan Joedo, and his team. Kerry himself claimed he never interacted with personnel from Pertamina’s Supply and Distribution Division handling fuel terminals.
“If I never interacted with that side, you know, I’m in shipping. What’s that division called? Supply and Distribution. I don’t know anyone there. So Mr Gading followed up and handled the correspondence. Because my contacts are all in shipping,” he explained.
Kerry admitted to meeting Hanung at an event organised by former Pertamina President Director Karen Agustiawan. However, the meeting was brief with no communication.
“No, honestly I forgot how we were introduced. We just shook hands. That’s what I remember, sir. It’s been a long time, so I forgot,” he said.
Kerry also confirmed there was no communication between Irawan Prakoso and Hanung regarding the leasing of PT OTM’s fuel terminal.
“Outside of that, witness, do you have any knowledge, for example, information that your uncle Mr Irawan Prakoso communicated with Mr Hanung?” the prosecutor asked.
“None,” Kerry replied.
After the trial, Kerry emphasised that this court session strengthens the absence of intervention by Mohamad Riza Chalid through Irawan Prakoso to Pertamina for leasing PT OTM’s fuel terminal. Besides Kerry, the prosecutor presented Irawan Prakoso as a witness in today’s trial. In his testimony, Irawan confirmed there was no intervention in the leasing process.
“I heard that in Mr Irawan’s trial, he said there was no order or coercion to Hanung or Alfian that OTM must be used by Pertamina. So no coercion to Mr Alfian and Mr Hanung. So where is the fault in this case? This case has no fault,” he said.
On this occasion, Kerry affirmed that PT OTM’s fuel terminal is still being used by PT Pertamina to this day. In fact, without the terminal, Pertamax operational reserves would decrease by three days.
“Without OTM, Pertamax operational reserves would decrease by three days. That means OTM is very important for our national energy resilience,” he said.
Moreover, Kerry noted, the government plans to build additional fuel tanks to strengthen energy resilience. This proves that PT OTM’s fuel terminal benefits the country.
“In fact, we are short on tanks right now, as news says the government plans to build more tanks. That means OTM benefits the country,” he said.
On that basis, Kerry claimed he was harmed by the alleged corruption case in oil management that made him a defendant. According to him, the judge only relied on the examination record (BAP) in imposing a 15-year prison sentence on him.