KPK states natural gas governance must be built based on real needs

Jakarta (ANTARA) - The Corruption Eradication Commission (KPK) views that natural gas governance in Indonesia must be built based on real or actual needs, measured planning, infrastructure readiness, and certainty of domestic utilisation.

“Every strategic decision, especially those of significant value and long-term impact, must be grounded in principles of prudence, transparency, and accountability that can be justified,” said KPK Spokesperson Budi Prasetyo to journalists in Jakarta on Thursday.

Budi made this statement while discussing developments in the trial of the two defendants in the alleged corruption case involving liquefied natural gas (LNG) procurement at PT Pertamina (Persero) from 2011 to 2021, namely Yenni Andayani and Hari Karyuliarto.

“In the context of this case, it was found that during that period, Indonesia did not experience a shortage of LNG. Domestic gas availability was in surplus through domestic production, so there was no urgent need to import LNG to meet national consumption,” he said.

According to him, the KPK views this situation as indicating that the main problem does not lie solely in business choices, but in governance that was not built comprehensively from the start.

“When needs are not certain, infrastructure is not ready, regulations are inadequate, yet large contracts are still executed, the resulting risks ultimately become a financial burden on the state,” he said.

Furthermore, he stated that the KPK reminds all stakeholders that in strategic sectors like energy, business decisions are not just about corporate profits and losses, but also concern public interests and the sustainability of national finances.

“Therefore, every policy must be built on the basis of real needs, not assumptions that lack implementation certainty,” he said.

Meanwhile, he said the KPK views strengthening energy sector governance, particularly natural gas, as an important part of national corruption prevention efforts.

“Clean governance not only prevents state losses but also maintains public trust and ensures that strategic resources are truly managed maximally for the benefit of the people,” he said.

Previously, the KPK issued an investigation order for the alleged bribery case in the LNG procurement on 6 June 2022.

On 19 September 2023, the KPK named Pertamina’s President Director for the 2011–2014 period, Karen Agustiawan, as a suspect in the case, which caused losses to the state of around 140 million US dollars.

Karen was then sentenced to nine years in prison and a fine of Rp500 million subsidiary three months’ imprisonment by the Jakarta Corruption Court on 24 June 2024.

The Supreme Court on 28 February 2025 then increased Karen’s sentence to 13 years in prison.

Meanwhile, on 2 July 2024, the KPK named two new suspects in the case, namely former Acting President Director of Pertamina Yenni Andayani and former Pertamina Gas Director Hari Karyuliarto.

The KPK on 31 July 2025 detained Yenni Andayani and Hari Karyuliarto.

Meanwhile, on 13 April 2026, the two suspects, now defendants, have undergone trial. Yenni is demanded a prison sentence of five years and six months, while Hari is demanded six years and six months.