Nine jailed over $17bn loss in Indonesia energy corruption case

An Indonesian court has jailed nine people in a major corruption case involving subsidiaries of state energy firm Pertamina, including two former chief executives of its units. Prosecutors say the case caused an estimated $17 billion in state losses.

The case centres on the alleged illegal leasing of a fuel terminal and unlawful imports of crude oil, among other offences. It is one of the largest corruption prosecutions launched under President Prabowo Subianto, who has vowed to eradicate corruption.

The nine were sentenced by the Central Jakarta Court, with verdicts read from Thursday afternoon into the early hours of Friday. The defendants received prison terms ranging from nine to 15 years, after prosecutors had sought sentences of between 14 and 18 years.

Yoki Firnandi, former chief executive of Pertamina International Shipping, and Riva Siahaan, former chief executive of Pertamina Patra Niaga, were each sentenced to nine years in prison.

Muhamad Kerry Adrianto Riza, the beneficial owner of a fuel terminal leased by Pertamina, was jailed for 15 years for his role in the case, less than the 18-year term sought by prosecutors.

Riza is the son of businessman Mohammad Riza Chalid, who has been named a suspect and is currently at large, according to police.

The three men denied the charges and pleaded not guilty during the trial, local media reported.

Riza’s lawyer, Patra Zen, said on Friday that his client rejected the ruling and would appeal. Outside the court, Firnandi described the verdict as a farce and said he would consult his legal team about a possible appeal. Siahaan’s lawyer, Luhut Pangaribuan, also expressed disappointment with the ruling.

Pertamina said it respects the court’s decision and reiterated its “zero tolerance towards corruption,” company spokesperson Muhammad Baron told Reuters.

“We continue to make improvements and transform our business processes and operations,” he said, adding that the company is ready to provide legal assistance to the defendants until the ruling becomes legally binding.

Reuters