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Court jails ex-Pertamina executive over $16 billion fuel procurement scandal

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Jakarta Globe - May 12, 2026

Antara, Jakarta – A Jakarta court on Tuesday sentenced former Pertamina Patra Niaga president director Alfian Nasution to six years in prison in a corruption case linked to fuel procurement and production practices that allegedly caused Rp 285 trillion ($16.3 billion) in state losses.

The scandal has become one of Indonesia's largest corruption cases involving the state energy sector, drawing public scrutiny over fuel subsidy management and procurement practices at state-owned enterprises.

The sentence was significantly lower than the 14-year prison term sought by prosecutors.

In the same case, judges at the Central Jakarta District Court imposed an identical six-year sentence on Pertamina marketing and trading director Hanung Budya Yuktyanta.

The court found both men guilty on three main counts: unilaterally appointing oil storage terminal operators whose facilities did not meet required standards; authorizing state subsidy payments for Pertalite gasoline that did not match actual distribution data; and selling diesel fuel below production cost.

However, the panel of judges said prosecutors had failed to prove that either defendant personally enriched themselves through the scheme.

The broader case also involves dozens of executives from Pertamina International Shipping and several private-sector companies, many of whom are being tried separately.

Among the most prominent suspects is oil businessman Mohammad Riza Chalid, who remains a fugitive and is believed to be overseas. Prosecutors allege that Chalid, the owner of Orbit Terminal Merak, leased storage facilities to Pertamina at prices that were unilaterally inflated.

Earlier in February, the same court sentenced former Pertamina Patra Niaga president director Riva Siahaan – who led the company before Alfian – to nine years in prison in connection with the same case.

Source: https://jakartaglobe.id/news/court-jails-expertamina-executive-over-16-billion-fuel-procurement-scanda

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