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Firmly Eradicating Corruption in Pertamina: Turning Point for Oil and Gas Reform

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By: Ali Fahmi )*

The mega corruption case at PT Pertamina (Persero) has created a major shock in the national energy sector. With losses reaching Rp193.7 trillion per year during the 2018-2023 period, this scandal is not just a financial irregularity, but also a serious threat to the country’s economic stability. Under the leadership of President Prabowo Subianto, eradicating the oil and gas mafia has become a top priority to ensure that state finances are no longer harmed by corrupt practices that have been going on for years.

The corruption case that occurred in Pertamina involved various modes, starting from the markup of crude oil imports, fuel imports, to the shipping of crude oil and fuel imports carried out by individuals in Pertamina subsidiaries and several private companies. Energy Economics Observer from Gadjah Mada University, Dr. Fahmy Radhi, assessed that this case should not be diverted to the debate on fuel blending, because that would only obscure the fact that the country had been robbed on a large scale.

Fahmy also reminded that the debate between the Attorney General’s Office and Pertamina regarding blending could have a negative impact on people’s consumption patterns. If people lose trust in non-subsidized fuels such as Pertamax, then there is a possibility that they will switch to subsidized fuels such as Pertalite. As a result, the subsidy burden in the State Budget (APBN) has the potential to increase significantly, which will ultimately harm the national economy.

In addition, the disclosure of this case which only occurred in early 2025 after going on for five years shows that there was a great power protecting the practice before. Fahmy highlighted that during the 2018-2023 period, this scandal seemed completely untouched because of the very strong backing. Without a large-scale operation against the oil mafia network and the parties protecting it, Pertamina’s mega corruption could happen again.

Eradication of corruption in the oil and gas sector cannot be done half-heartedly. Therefore, the government has given full authority to the Attorney General’s Office to investigate this case to its roots. President Director of PT Pertamina, Simon Aloysius Mantiri, revealed that the Attorney General’s Office has collected a number of pieces of evidence related to this alleged corruption. The evidence includes documents, laptops, mobile phones, and other communication devices, which are expected to reveal the oil and gas mafia network in more depth.

Simon also emphasized that Pertamina will be transparent in the investigation and fully support the ongoing legal process. According to him, if during the investigation additional evidence is still needed, his party will remain cooperative in submitting it to the Attorney General’s Office.

This firm step by the government shows that the era of protection against the oil mafia is over. President Prabowo Subianto is committed to saving the country from trillions of rupiah in losses due to long-standing corruption practices in the energy sector. With full support from various parties, this scandal is expected to be a turning point in the reform of oil and gas governance in Indonesia.

Eradicating corruption in the oil and gas sector is not enough just by arresting the perpetrators involved. Comprehensive reform must be carried out to ensure that similar cases do not occur in the future.

So far, weak supervision of oil and gas imports and distribution has provided a loophole for corrupt practices. Therefore, there needs to be a more transparent system in recording fuel import and distribution transactions.

Pertamina as a strategic BUMN must have a stricter internal monitoring mechanism. Every major transaction, especially those related to the import and export of crude oil, must be audited periodically by an independent institution.

As Fahmy said, the oil mafia does not only consist of individuals within Pertamina, but also involves parties in related ministries that have been backing them. If only the field executors are punished while the main masterminds remain free, then corruption will continue to recur.

One of the reasons why the oil mafia can operate freely is Indonesia’s dependence on fuel imports. If domestic refineries can be optimized and their production capacity increased, Indonesia can reduce its dependence on imports and close the gap for corrupt practices.

The Pertamina mega corruption case that was revealed in early 2025 could be a turning point in the reform of oil and gas governance in Indonesia. If this reform is carried out seriously, the national oil and gas industry will become more transparent, efficient, and free from mafia.

Success in eradicating the oil mafia will not only have an impact on improving industrial governance, but also on people’s welfare. With a cleaner and more transparent system, fuel prices are expected to be more stable and affordable for the community. In addition, optimizing domestic energy resources will strengthen national energy security, reduce dependence on imports, and create long-term economic stability.

President Prabowo’s move to fully support the Attorney General’s Office’s efforts shows that eradicating corruption in the oil and gas sector is not just rhetoric, but a real agenda that must be completed. This reform is not only for today, but also for the future of Indonesia which is more independent and sovereign in managing its energy resources.

)* The author is a young academic who is an observer of government policy.

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