Reason Riva Siahaan Remains Imprisoned Despite Not Benefiting from Oil Corruption Proceeds
A panel of judges at the Jakarta Corruption Court has sentenced Riva Siahaan, former Chief Executive of PT Pertamina Patra Niaga (PT PPN), to nine years imprisonment in a corruption case concerning oil governance that caused state financial losses of Rp 9.4 trillion. Siahaan remains imprisoned despite being declared to have not benefited from the corruption proceeds.
The verdict was delivered by the judges of the Central Jakarta Corruption Court in a hearing held on Thursday (26 February). In addition to Siahaan, judges also delivered verdicts for two other defendants in the same hearing: Maya Kusmaya (MK), former Director of Marketing and Trading at PT Pertamina Patra Niaga, and Edward Corne (EC), former VP of Trading Operations at PT Pertamina Patra Niaga.
The judges stated that the defendants accorded special treatment to a foreign company in refinery product import procurement. The judges noted that the defendants disclosed estimated price information (HPS) so that their partner company could adjust pricing and win the auction.
“Directing BP Singapore’s offer to approach the volume required by the HPS, becoming the auction winner as occurred in the circumstances below and has become a legal fact,” the judge stated.
Additionally, the judges also stated that state financial losses as calculated by the Supreme Audit Board (BPK) in this case have been proven. Total losses reached Rp 9.4 trillion.
“That based on the results of investigative inspection reports by BPK RI Number 26 and continuing, conducted in order to calculate state financial losses in oil governance by the Ministry of Energy and Mineral Resources, there exists state financial loss at PT Pertamina amounting to Rp 2,545,277,386,935 (2.5 trillion), which forms part of the overall state financial loss in the sale of non-subsidised diesel by PT Pertamina and PT PPN in 2018-2023 totalling Rp 9,415,196,905,676.86 (9.4 trillion),” the judge stated.
The judges stated that the calculation of state economic losses totalling Rp 171,997,835,294,293 (Rp 171 trillion) remains presumptive in nature. The judges stated that the calculation is not tangible and not certain.
“The panel of judges considers that because state financial losses were corroborated by expert testimony from Nailul Huda and Wiko Saputra, such calculation is presumptive in nature with many factors influencing it, thus making it uncertain and not tangible, such that the existence of state economic losses cannot yet be proven,” the judge stated.
Despite stating that there is state loss, the judges declared that there is no legal fact demonstrating that the defendants obtained money from corruption that harmed the state in this case. On this basis, the judges decided not to impose financial restitution upon the defendants.
“Considering that at the hearing there was no legal fact obtained that defendant Riva Siahaan obtained money from corruption that harmed state finances. Thus defendant is not imposed with financial restitution as referred to in Article 18 of the Corruption Criminal Act,” the judge stated.
The judges also ordered the lifting of the freeze on the defendant’s savings account. The judges stated that the savings account has no connection to this case.
“Considering that regarding evidence in the form of money and bank savings books that were subject to freezing, because there is no connection to the criminal act, the freeze on such savings books must be lifted,” the judge stated.
The judges nevertheless imposed prison sentences on the defendants. Aggravating factors included that the defendants’ actions did not support the government’s corruption eradication programme. Mitigating factors included that the defendants conducted themselves respectfully during proceedings, had no prior convictions, and had family dependants.
The following are the details of the defendants’ verdicts:
Riva Siahaan sentenced to 9 years imprisonment and a fine of Rp 1 billion, alternatively 190 days additional confinement
Maya Kusmaya sentenced to 9 years imprisonment and a fine of Rp 1 billion, alternatively 190 days additional confinement
Edward Corne sentenced to 10 years imprisonment and a fine of Rp 1 billion, alternatively 190 days additional confinement