Indonesia’s Attorney General’s Office (AGO) has detained an employee of commodity trading firm Trafigura Group alongside seven other individuals as part of a sweeping corruption investigation involving state-owned energy company PT Pertamina. The case centres on alleged irregularities in oil procurement processes between 2018 and 2023 and is emerging as one of the country’s most significant graft probes in decades.
In a statement released late Thursday, the AGO confirmed that eight suspects are now in custody, with authorities actively pursuing a ninth individual believed to be located overseas. The allegations concern purported misconduct in export-import activities, vessel and terminal leasing, as well as product compensation schemes.
Among those detained is a former business development manager at Trafigura’s Indonesian unit. The other suspects include two individuals affiliated with private sector entities and six former executives of Pertamina and its subsidiaries. The AGO has not released the full identities of the individuals, disclosing only initials and professional roles.
A spokesperson for Trafigura noted that the detained employee had been cooperating with the authorities prior to being named a suspect. The company is currently providing legal representation while awaiting further information regarding the case. Pertamina has stated via text message that it is committed to cooperating fully with the ongoing legal proceedings and will respect due process.
The suspects have yet to be formally charged. Under Indonesian law, the AGO may detain individuals for an initial period of up to 20 days, after which it must either file formal charges, request a detention extension, or release the individuals.
Prosecutors now estimate that the graft has cost the state approximately 285 trillion rupiah (equivalent to US$17.6 billion or RM74.73 billion), a significant increase from the 193 trillion rupiah previously reported in February. The revised figure reflects the broader economic impact of the alleged misconduct, according to Abdul Qohar, a director at the AGO.
The investigation, which continues to widen, poses a key test for President Prabowo Subianto’s administration. President Subianto has publicly committed to addressing corruption across Indonesia’s extensive network of state-owned enterprises. The nation ranked 99th out of 180 countries in Transparency International’s 2024 Corruption Perceptions Index.
Since February, authorities have detained over a dozen individuals connected to Pertamina, its affiliates, and various trading firms. The probe has involved questioning more than 250 witnesses. Prosecutors have alleged that the suspects orchestrated inflated oil imports through opaque trading structures, directing refineries to procure crude oil and refined products at above-market prices.
In May, Indonesian investigators approached several Singapore-based oil traders for meetings in the city-state, a major storage hub for refined petroleum products and a critical node in the regional energy supply chain.
The AGO is currently working with overseas legal representatives to locate and repatriate the final suspect, with efforts focused on neighbouring Singapore.
“We’ve received information that the individual is there,” Qohar said. “We’re taking all necessary steps to locate and bring him back.”
-Bloomberg
