Pertamina International Shipping CEO Arrested in $12 Billion Corruption Scandal
Pertamina International Shipping chief executive Yoki Firnandi has been arrested in connection with an alleged $12 billion corruption scandal involving the procurement of crude oil and oil products.
Indonesia’s Attorney-General’s Office named Yoki as one of seven suspects, four of whom were officials of Pertamina subsidiaries. The suspects were accused of manipulating the domestic refinery oil production policy and forcing refiners to import crude from abroad.
Pertamina is legally required to source crude from domestic suppliers before relying on imports. However, between 2018 and 2023, the accused allegedly conspired to claim that crude oil supplied by Indonesian producers did not meet Kilang Pertamina refinery’s standards.
Abdul Qohar, director of special crimes at the Attorney General’s office, told reporters that the specifications did in fact match and that the crude oil produced by contractors was exported instead.
Yoki allegedly facilitated imports with inflated prices, resulting in the state paying 13 to 15% more than the actual cost, benefiting brokers who are also accused of profiting illegally from the shipments.
The scheme caused the state losses of about $12 billion, the prosecutor said.
Yoki has led the shipping arm of Indonesia’s top energy producer since September 2022.