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The Attorney General's Office revealed allegations of corruption in the management of crude oil and refinery product trading at PT Pertamina, estimated to have caused state losses of up to Rp 193.7 trillion. In addition to this case, several corruption cases in state-owned enterprises (SOEs) have recorded enormous state losses. From Jiwasraya to Garuda Indonesia, here are the five largest corruption cases ever occurred in these state-owned enterprises.
1. PT Timah
The Attorney General's Office (AGO) revealed allegations of corruption in the commodity trading of tin in the IUP area of PT Timah Tbk for the 2015-2022 period, involving 23 suspects, including Harvey Moeis and Helena Lim. According to the BPKP audit, state losses reached Rp 300 trillion, with details of Rp 2.28 trillion due to improper equipment leasing procedures, Rp 26.6 trillion from illegal tin ore purchases, and Rp 271 trillion from ecological damage.
At the initial trial of Harvey Moeis at the Jakarta Corruption Court on August 14, 2024, illegal practices by PT Timah since 2015 were revealed, including the acceptance of illegal mining results. The scheme of legalization was carried out through the Mitra Jasa Penambangan program, which involved dozens of companies each year. PT Timah also engineered payments as if they were Business Service Costs.
Prosecutors revealed that high-quality tin ore was actually sold to private collectors and smelters, causing PT Timah's production to not reach its target. Harvey Moeis, as a representative of PT Refined Bangka Tin, was involved in the illegal tin ore sales to PT Timah. He was accused of enriching himself up to Rp 420 billion and charged with corruption and money laundering.
2. Pertamina
The Attorney General's investigators revealed the existence of collusion between Pertamina officials and brokers in alleged corruption in the management of crude oil and refinery products for the 2018-2023 period. This case caused state losses of Rp 193.7 trillion, including crude oil exports, oil imports through brokers, as well as fuel subsidy and compensation burdens.
Suspects from Pertamina include President Director of PT Pertamina Patra Niaga Riva Siahaan (RS), Director of Feedstock & Product Optimization at PT KPI Sani Dinar Saifuddin (SDS), Director of PT Pertamina International Shipping Yoki Firnandi (YF), and VP Feedstock Management at PT KPI Agus Purwono (AP). From the private sector, the suspects are Muhammad Kerry Adrianto Riza (MKAR), Dimas Werhaspati (DW), and Gading Ramadhan Joedo (GRJ).
The corruption modus operandi includes manipulation of refinery production to open up import opportunities, price mark-ups, and transactions of low-quality oil transformed through blending. This practice made the fuel prices more expensive, increasing the burden on the state budget through subsidies and compensation.
3. PT Asabri Pension Fund
Corruption cases in the financial management and investment funds of PT Asuransi Angkatan Bersenjata Republik Indonesia (Asabri) became one of the largest, with state losses reaching Rp 22.78 trillion. According to the BPK, these losses were caused by various irregularities at PT Asabri between 2012 and 2019.
In this scandal, the AGO named eight suspects, including President Director of PT Hanson International Tbk Benny Tjokrosaputro and Commissioner of PT Trada Alam Minera Heru Hidayat, who were also involved in the corruption case of PT Asuransi Jiwasraya (Persero).
4. PT Asuransi Jiwasraya
Six defendants in the alleged corruption case of management and use of investment funds at PT Asuransi Jiwasraya during the 2008-2019 period were accused of causing state losses of Rp 16.8 trillion. This figure is based on the results of an investigative audit report by the BPK released on March 9, 2020.
The corruption case in the oldest life insurance company in Indonesia was revealed after experiencing liquidity pressure, which resulted in its equity being recorded at minus Rp 27.24 trillion in November 2019. In response to this, the Ministry of State-Owned Enterprises under the leadership of Erick Thohir reported the alleged fraud at Jiwasraya to the AGO.
5. Garuda Indonesia
The Jakarta Corruption Court accused the procurement of Bombardier CRJ-1000 and Avions de Transport Regional (ATR) 72-600 aircraft at PT Garuda Indonesia (Persero) Tbk in 2011-2021 of causing state losses of US$ 609.81 million or about Rp 9.37 trillion. Meanwhile, according to the Attorney General's Office, the total losses caused by this case reached Rp 8.8 trillion.
"We obtained the handover of the audit results of state losses at PT Garuda Indonesia amounting to Rp 8.8 trillion," said Attorney General Sanitiar Burhanuddin at the main lobby of the Kartika Kejagung Building, Jakarta, Monday, June 27, 2022.
In this case, five people have been named as suspects. The procurement of Bombardier CRJ-1000 and ATR 72-600 aircraft was considered not in line with Garuda Indonesia's business concept, which focuses on full-service flights.
Raden Putri Alpadillah Ginanjar, Ade Ridwan Yandwiputra, and Melynda Dwi Puspita contributed for this article.
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