KPK Announces Oil-Gas Mafia Suspects Today

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Petir Garda Bhwana

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  • TEMPO.CO, Jakarta - The Corruption Eradication Commission (KPK) today will announce the names of suspects in the oil and gas mafia case.

    After President Jokowi dissolved Petral (Pertamina Energy Trading Ltd) in May 2015 as part of the government's war on oil and gas mafia, the KPK conducted an in-depth investigation to explore the legal facts of mafia practices in the oil and gas sector, KPK spokesman Febri Diansyah said in Jakarta, Tuesday, September 10.

    "We will convey this information to the public this afternoon at the KPK building," Febri said.

    KPK reviewed the results of a forensic audit of Petral during the procurement of oil in 2012-2014. Pertamina submitted the audits as requested by the KPK. Some of the audits were done by Australian auditors and also by the Supreme Audit Agency (BPK).

    At that time, former Energy Minister Sudirman Said had said that the potential law violations indicated in the audit would be handed over to law enforcement officials.

    Sudirman said there were third parties outside the management of Petral and Pertamina who interfered in the procurement and sales process of crude oil and fuel products; starting with tender-fixing at their preferred price, to using Petral's employees and management instruments when committing their acts.

    As a result, Petral and Pertamina were unable to obtain ideal prices when they procured. These third parties are very influential in the crude oil and fuel trade, forcing businesses actors to follow a non-transparent game.

    Petral was shut down on May 13, 2015. Its jobs have been taken over by PT Pertamina Integrated Supply Chain (ISC Pertamina), allowing the discount, which was previously held hostage by third parties, to return to the government. Trade has also become more transparent and free.

    The mafia allegedly controls US$6 billion per year, or around 15 percent of the US$40 billion average of annual oil import value.

    ANTARA