Indonesia Expands $17.6 Billion Corruption Probe Into Pertamina, Trafigura Employee, and Shipping Firms
Indonesia has expanded its high-profile corruption investigation into state energy giant Pertamina, now implicating a Trafigura employee and a local shipping company, as part of a broader probe covering activities from 2018 to 2023.
The Attorney General’s Office (AGO) has named nine additional suspects in a case that has allegedly caused state losses totaling IDR 285 trillion (approximately $17.58 billion).
The allegations include irregularities in the import of crude oil and fuel, improper shipping leases, and fuel terminal lease procurements.
Global commodities trader Trafigura confirmed to Reuters that one of its employees, who works at an Indonesian subsidiary, has been named a suspect and is cooperating with authorities.
“We understand that the employee has been recently named a suspect in an investigation involving Pertamina,” a Trafigura spokesperson said via email.
“Trafigura is providing appropriate legal representation to the employee and is awaiting further details about the specific allegations.”
Among the newly named suspects are six former Pertamina executives, a former manager at Indonesian shipping firm Mahameru Kencana Abadi, and a beneficial owner of Orbit Terminal Merak, a local fuel storage facility, according to AGO director Abdul Qohar.
A Pertamina spokesperson stated that the company respects the ongoing legal process and is fully cooperating with the investigation.
In February, TradeWinds reported the arrest of Yoki Firnandi, CEO of Pertamina International Shipping, for allegedly playing a central role in the scandal.
Firnandi was one of three key executives from Pertamina subsidiaries who were detained over accusations of bypassing regulations that require Pertamina to prioritize sourcing crude oil from domestic producers.
Qohar alleged that the suspects falsely claimed that Indonesian crude oil did not meet the standards of Pertamina’s Kilang refinery, enabling its export.
This locally produced oil was then allegedly replaced by overpriced imported crude and fuel oil, bought at inflated prices, with a 13–15% markup intended to benefit brokers.
According to Indonesian law, domestically produced crude oil can only be exported if it has been officially rejected by Pertamina.
This case is not the first time Trafigura has faced corruption investigations. In April 2024, the company agreed to pay an additional $49 million to settle bribery cases in Brazil, following earlier resolutions with Brazilian authorities.
A month earlier, Trafigura also struck a deal with the U.S. Department of Justice, which agreed to credit up to $26.8 million against payments already made to Brazilian regulators.
