Basudiwa Supraja, Jakarta – The Attorney General's Office (AGO) is investigating the possible involvement of oil tycoon Mohammad Riza Chalid in a corruption case involving the management of crude oil and refinery products at state-owned oil giant Pertamina from 2018 to 2023.
The probe follows a raid on Riza Chalid's residence on Tuesday, a day after his son, Muhammad Kerry Adrianto Riza, an executive at Navigator Khatulistiwa, was named a suspect in the case. Investigators searched two locations: the 20th floor of Plaza Asia and a residence on Jalan Jenggala 2 in South Jakarta.
AGO's Director of Investigation Abdul Qohar said authorities are still gathering evidence before determining whether Riza Chalid had a role in the scandal.
"We are currently investigating whether Mohammad Riza Chalid was involved. Please be patient, as the process is ongoing," Qohar said at a press conference on Tuesday.
Riza Chalid, a longtime player in Indonesia's oil trade, previously controlled Pertamina Energy Trading Ltd (PETRAL), a Pertamina subsidiary, and Global Energy Resources, a major crude oil supplier. His name has surfaced in past controversies, including the 2008 Zatapi crude oil import case, which allegedly caused Pertamina a loss of Rp 65 billion. The case was later dropped by police for lack of state losses.
He was also implicated in the 2015 "Papa Minta Saham" scandal, in which he and former House Speaker Setya Novanto were accused of using the names of then-President Joko Widodo and Vice President Jusuf Kalla to demand a 20% stake in Freeport Indonesia.
The AGO has already searched the residences of seven suspects in the crude oil corruption case, including Riva Siahaan, the president director of Pertamina Patra Niaga. The case allegedly involved awarding oil supply contracts without a proper tender process and inflating shipping fees for imported crude oil, causing state losses estimated at Rp 193.7 trillion ($11.9 billion).
Pertamina $11.9 billion scandal
In a separate but related development, the AGO has revealed that executives of Pertamina subsidiaries engaged in fraud by selling subsidized Pertalite fuel as Pertamax, a higher-priced, non-subsidized fuel. Yoki Firnandi, CEO of Pertamina International Shipping, has been named a suspect, making him the second Pertamina subsidiary chief implicated in the scandal alongside Riva Siahaan. From 2018 to 2023, Pertamina Patra Niaga allegedly blended subsidized Pertalite with Pertamax, generating illicit profits while burdening consumers.
Three private-sector firms – Navigator Khatulistiwa, Jenggala Maritim, and Orbit Terminal Merak – were also implicated in the corruption case.
According to the AGO, these private firms were awarded crude oil supply contracts without a proper tender process, violating procurement regulations. Additionally, the shipping fees for imported crude oil – managed by Pertamina International Shipping – were inflated above market rates, leading to massive financial losses for the state.
The AGO estimates that the scandal has resulted in state losses amounting to Rp 193.7 trillion ($11.9 billion).