Pertamina Exec Arrested in $12bn Oil Corruption Probe

Pertamina International Shipping’s CEO, Yoki Firnandi, has been taken into custody amid allegations of a $12bn corruption scheme tied to the procurement of crude oil and oil products.

Indonesia’s Attorney-General’s Office has identified Yoki as one of seven suspects, with four being officials from Pertamina’s subsidiaries. The accused are alleged to have manipulated policies on domestic refinery oil production, coercing refiners into importing crude oil instead of sourcing it locally.

Under Indonesian law, Pertamina must prioritize domestic crude supplies over imports. However, between 2018 and 2023, the conspirators reportedly argued that crude oil provided by Indonesian producers did not meet the standards required by the Kilang Pertamina refinery.

Abdul Qohar, director of special crimes at the Attorney General’s Office, informed reporters that the oil specifications were indeed met, and that the crude produced by contractors was instead exported.

Yoki is accused of facilitating imports at inflated prices, causing the state to overpay by 13 to 15% above the actual cost. This overpricing is said to have benefited brokers, who are also accused of illicitly profiting from the shipments.

According to the prosecutor, the fraudulent scheme resulted in state losses of approximately $12bn.

Yoki has been at the helm of the shipping division for Indonesia’s leading energy producer since September 2022.