Police Name Four Suspects in Rp 486 Billion Fuel Sales Corruption Case

The Corruption Eradication Corps (Kortas Tipikor) of the Indonesian National Police has named four individuals as suspects in a corruption case involving the sale of fuel between PT Pertamina Patra Niaga (PT PPN) and PT Asmin Koalindo Tuhup (AKT) from 2009 to 2012. The alleged corruption resulted in state losses of approximately Rp 486 billion.

Head of Operations for Kortas Tipikor, Kombes Ahmad Yusuf Afandi, stated that the case began with a cooperation agreement for the sale of high-speed diesel (HSD) between PT PPN and PT AKT. The initial agreement used a secure payment mechanism via a Letter of Credit (LC) or a Domestic Documentary Letter of Credit (SKBDN).

However, fuel deliveries to PT AKT continued without proper mitigation measures. Yusuf noted that PT AKT repeatedly delayed and defaulted on payments. Despite these defaults, officials at PT PPN allegedly failed to halt fuel distribution or implement risk mitigation steps as required by the business judgement rule.

A subsequent amendment to the agreement further disadvantaged the state. The changes included granting additional fuel distribution volumes, providing price discounts, removing penalty clauses for late payment, and altering the payment mechanism from a guaranteed system to a mere 25 percent down payment without any payment guarantee.

Yusuf added that internal supervision and billing mechanisms were allegedly not enforced. The agreement changes were also not reported to superiors, allowing the ineffective monitoring of company receivables. Fuel distribution to PT AKT continued even though payment obligations were not met.

As a result, out of a total distribution of 191.37 million litres of fuel valued at USD 137.29 million, there were unmet payment obligations. A state loss audit by the Supreme Audit Agency (BPK) confirmed a state loss of USD 30,370,958.61, equivalent to approximately Rp 486 billion.

The four suspects named are the Marketing Director of PT PPN for the 2008-2011 period, SW; the Vice President of Sales for the Eastern Region of PT PPN for the 2009-2013 period, JI; the General Manager of Treasury and Vice President of Treasury of PT PPN, WTD; and a shareholder and President Director of PT AKT, ST. Despite being named suspects, the four individuals have not yet been detained.