Indonesian prosecutors have arrested three Pertamina executives for oil imports

A senior official revealed that the Attorney General's Office in Indonesia has arrested three executives from Pertamina, a state-owned energy company. They were accused of corruption in relation to oil imports which cost the government $12 billion.

Abdul Qohar told reporters that prosecutors arrested Riva Saifuddin and Yoki Firnandi late on Monday.

Pertamina stated in a press release on Tuesday that they respected the legal process being conducted by the Attorney General's Office.

"Pertamina will cooperate with authorities, and we hope that the legal process goes smoothly. We also place a high priority on the presumption innocence."

Abdul claimed that the three had violated government regulations for Pertamina, which required them to purchase crude oil from local suppliers. They also allegedly colluded in order to justify crude imports and fuels.

He claimed that the executives said that the crude oil supplied by contractors in Indonesia didn't meet their standards.

Abdul replied, "But in fact the specifications matched."

The prosecutor stated that crude oil exported by contractors was imported at "significantly higher" prices, while Kilang Pertamina Internasional, and Pertamina Patra Niaga imported fuel and crude oil with "significantly lower" prices. Losses to the state were estimated at $12 billion or 193.7 trillion rupiah.

Pertamina Patra Niaga, a division of the state-owned energy company, is responsible for retail sales and fuel imports. Kilang Pertamina International refines crude oil, condensate and other products.

Pertamina International Shipping was accused by the Attorney General of increasing shipping charges.

The office also said that three other people, from private companies, were arrested. $1 = 16,270 Rupiah (Reporting and editing by John Mair; Bernadette Christain, Ananda Teresia)

(source: Reuters)