JAKARTA (Reuters) – Indonesia’s Attorney General’s Office arrested two executives at a unit of state energy firm Pertamina on charges of alleged corruption related to fuel quality, following other arrests earlier this week in a case officials say has cost the state $12 billion.
Prosecutors arrested Maya Kusmaya, a marketing director, and Edward Corne, VP Trading, at Pertamina Patra Niaga, Abdul Qohar, director of special crimes at the Attorney General’s office, told reporters late on Wednesday.
Pertamina Patra Niaga is a unit in charge of retail sales and fuel imports. Pertamina and Pertamina Patra Niaga did not respond to questions about the new arrests.
Three other executives at Pertamina units were arrested on Tuesday, accused of allegedly colluding to justify crude oil and fuel imports instead of sourcing them domestically as required.
After the initial three arrests, Pertamina said it was ready to cooperate with authorities, and hoped the legal process ran well and prioritised the presumption of innocence.
Abdul said the two suspects arrested on Wednesday are alleged to have approved the importation of 90-octane gasoline, known as Pertalite, at the price of higher-quality 92-octane gasoline, known as Pertamax.
“It has caused the payment for imported refined products with a high price, not matching the quality,” he said.
Both also face charges of approving a decision to blend 88-octane gasoline, known as Premium, with Pertamax, which was then sold at the price of higher-octane fuel, Abdul said.
Pertamina said in a statement the 92-octane gasoline matched the standards and specifications set by the energy ministry.
Abdul said the executives had also used spot contracts rather than future contracts when ordering fuel, and this caused Pertamina Patra Niaga to pay higher prices for its orders.
Abdul said losses to the state from the cases were estimated at 193.7 trillion rupiah ($11.8 billion).
($1 = 16,365 rupiah)
(Reporting by Ananda Teresia; Editing by John Mair)
