Yoki Firnandi, chief executive of Pertamina International Shipping (PIS), was arrested on February 24 as one of seven suspects in an alleged $12 billion corruption scandal involving the procurement of crude oil and oil products, Indonesia’s Attorney-General’s Office (AGO) announced.
The investigation targets manipulation of domestic refinery oil policies, forcing Pertamina to import crude despite legal requirements to prioritize local suppliers from 2018 to 2023.
Firnandi, who has led PIS since September 2022, faces accusations of facilitating imports at inflated prices, causing the state to pay 13% to 15% above market rates, benefiting brokers who profited illegally from the shipments, according to Abdul Qohar, director of special crimes at the AGO.
The scandal, involving state losses of approximately $12 billion, or Rp 193.7 trillion, also implicates Riva Siahaan, president director of Pertamina Patra Niaga, and Sani Dinar Saifuddin and Agus Purwono from Kilang Pertamina Internasional, along with three private sector figures: Muhammad Keery Andrianto Riza, Dimas Werhaspati, and Gading Ramadan Joede.
Pertamina, Indonesia’s state-owned oil and gas giant, stated on February 25, “Pertamina is committed to cooperating with law enforcement agencies to ensure due legal process while upholding the presumption of innocence,” according to spokesman Fadjar Djoko Santoso, as reported by the Jakarta Globe.
The AGO alleges the suspects colluded to claim domestically produced crude did not meet refinery standards, exporting it instead of using it, violating regulations prioritizing local supply.
The investigation, launched in 2024, follows Pertamina’s pledge to improve governance after earlier controversies.
Pertamina International Shipping is a subsidiary of Indonesia’s state-owned oil and gas company Pertamina, based in Jakarta, specializing in marine logistics and tanker operations. PIS, under Firnandi, aimed to double its 320-tanker fleet over 10 years and expand into LNG logistics.