Pertamina maxi-corruption scandal shakes Indonesia
The state-owned oil giant is involved, with billions in losses. The Attorney General's Office has revealed a fraud related to the blending of fuels. Thousands of vehicles may have suffered serious damage. The malfeasance stems from serious lack in transparency and heavy political meddling.
Jakarta (AsiaNews) – A massive corruption scandal, involving the country’s state-owned oil giant Pertamina, is shaking Indonesia, causing bewilderment and indignation among ordinary citizens with unpredictable political and judicial repercussions.
For the Asian country, this is another story of corruption and malfeasance a few days after the arrest of former president Megawati Soekarnoputri's right-hand man.
The secretary-general of the Indonesian Democratic Party of Struggle (PDI-P[*]), Hasto Kristiyanto, a Catholic, ended up in the crosshairs of law enforcement, but many see the case as an attack by the government against its only effective opposition force.
The Indonesian Attorney General's Office (AGO) recently unveiling of massive financial loss is linked to an illegal system of blending fuels for vehicles. This fraudulent practice, carried out by a subsidiary of Pertamina, led to a loss of about a IDR 1,000 trillion (almost US$ 61 billion), far higher than the 200 trillion previously declared.
As the investigation continues, the authorities expect to charge other suspects, as the case appears to involve several people both inside and outside the company.
Basuki Tjahaja Purnama, a former governor of Jakarta and former chief commissioner of Pertamina, spoke about the scandal, suggesting that the “mega saga” might create an opportunity for new actors to replace those currently responsible for corrupt practices.
During his tenure, Purnama himself often clashed with senior officials over illegal activities, but he did not have the authority to fire them.
“If only I had been the CEO, I would have had the power to remove them,” he said in a pre-recorded video that has been widely shared on Indonesian social media in recent days.
Experts point to two key issues behind the scandal: first, a colossal financial loss, worth more than US$ 900 billion, making it one of the largest corruption cases in the country's history.
The other one is the huge damage caused to vehicles on the road, thousands of which may have suffered heavy engine impairment due to the use of improperly blended fuel.
“This is not just about corruption,” said Khalid, a former commissioner of Pertamina’s subsidiary. “The real issue is that the monitoring system and distribution chain are completely dysfunctional.”
He explained that the fraudulent practices extend to import protocols, broker management and manipulation of oil distribution. In this context, serious gaps in terms of transparency and heavy political interference have emerged.
In fact, compared to global oil giants such as Aramco and Shell, Pertamina struggles to ensure transparency and efficiency. Many observers believe political interference from various parties has significantly hampered the company's ability to operate with integrity.
The ongoing investigation by the prosecutor's office ultimately seeks to uncover the full extent of this corruption network and bring those responsible to trial. Yet, the crucial question remains: Will the scandal lead to real reforms or will new actors simply take the place of the old ones?
[*] Partai Demokrasi Indonesia Perjuangan.
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01/07/2008
