Police Anti-Corruption Unit Seizes Rp2.3 Billion in Fuel Corruption Case

The Corruption Eradication Task Force of the Indonesian National Police has seized cash totalling Rp2.3 billion in connection with an investigation into alleged corruption in the non-cash fuel oil sales cooperation between PT Pertamina Patra Niaga and PT Asmin Koalindo Tuhup during the 2009–2012 period. Head of Operations for the task force, Police Grand Commissioner Ahmad Yusuf Afandi, stated that the seizure followed searches conducted at several locations. ‘Investigators seized various documents, electronic evidence, and cash amounting to Rp2.3 billion,’ he said during a press conference at the Criminal Investigation Department building in Jakarta on Tuesday. He emphasised that the seizure is part of an asset recovery effort aimed at maximising the return of state financial losses. In addition to the seizure, investigators have examined 88 witnesses and three experts. Four suspects have been named: SW, the Marketing Director of PT Pertamina Patra Niaga from 2008 to 2011; JI, the Vice President of Eastern Region Sales at PT Pertamina Patra Niaga from 2009 to 2013; WTD, the General Manager of Treasury and Vice President of Treasury at PT Pertamina Patra Niaga; and ST, a shareholder and President Director of PT Asmin Koalindo Tuhup. Ahmad Yusuf noted that investigators are continuing to examine witnesses and suspects, trace assets, complete case files, and coordinate with public prosecutors in accordance with regulations for further legal proceedings. ‘Once all processes are complete, investigators will immediately submit the case files to the prosecutor,’ he said. The case originated from a fuel sales cooperation agreement for High Speed Diesel between PT Pertamina Patra Niaga and PT Asmin Koalindo Tuhup, using a Letter of Credit or Domestic Documentary Letter of Credit payment mechanism. During its implementation, PT Asmin Koalindo Tuhup was repeatedly late in making payments and accumulated arrears. However, authorised officials at PT Pertamina Patra Niaga allegedly did not halt fuel distribution or implement risk mitigation measures as required by regulations. Investigators suspect that several policy changes were made through contract addenda that benefited PT Asmin Koalindo Tuhup, and that internal supervision and billing mechanisms at PT Pertamina Patra Niaga were not properly executed. Consequently, fuel distribution continued despite unmet payment obligations. PT Asmin Koalindo Tuhup obtained large-scale fuel sales financing facilities without adequate collateral, while the risk of loss was borne by PT Pertamina Patra Niaga. From the distribution of approximately 191.37 million litres of fuel valued at USD 137.29 million, there were unmet payment obligations. Based on an audit by the Supreme Audit Agency, the case resulted in state financial losses of USD 30,370,958.61, or approximately Rp486 billion.