Pertamina’s corruption probe in Indonesia fuels anger over ‘oil and gas mafia’
A US$12 billion corruption scandal at Indonesia's state-owned energy company, Pertamina, has sparked public outrage and poses a challenge to President Prabowo Subianto's pledge to eliminate the country's long-standing "oil and gas mafia." The Attorney General's Office (AGO) has arrested nine suspects, including Pertamina executives and individuals linked to businessman Riza Chalid, known as the "oil king," for allegedly defrauding the company through petroleum imports between 2018 and 2023.
The suspects are accused of manipulating the quality assessment of domestically produced crude oil to justify its export, enabling oil contractors, including Chalid's son, to benefit. Energy economist Fahmy Radhi highlights the deep-rooted nature of the oil mafia, which involves collusion between Pertamina executives, private companies, and even government officials. The raid on Chalid's house, allegedly used as an operational base, underscores the scale and complexity of the alleged corruption, although Chalid himself has not been named as a suspect.
via SCMP Full Text Feed
A US$12 billion corruption scandal at Indonesia's state-owned energy company, Pertamina, has sparked public outrage and poses a challenge to President Prabowo Subianto's pledge to eliminate the country's long-standing "oil and gas mafia." The Attorney General's Office (AGO) has arrested nine suspects, including Pertamina executives and individuals linked to businessman Riza Chalid, known as the "oil king," for allegedly defrauding the company through petroleum imports between 2018 and 2023.
The suspects are accused of manipulating the quality assessment of domestically produced crude oil to justify its export, enabling oil contractors, including Chalid's son, to benefit. Energy economist Fahmy Radhi highlights the deep-rooted nature of the oil mafia, which involves collusion between Pertamina executives, private companies, and even government officials. The raid on Chalid's house, allegedly used as an operational base, underscores the scale and complexity of the alleged corruption, although Chalid himself has not been named as a suspect.
via SCMP Full Text Feed
