Latest Oil Price Issues, Here are 13 Mega Corruption Cases in Indonesia that Cost the State Hundreds of Trillions

Kapanlagi.com - Corruption remains a frightening specter for the Indonesian economy, with various scandals that have cost the state hundreds of trillions of rupiah. From the oil scandal that cost up to Rp193.7 trillion to the Bank Indonesia Liquidity Assistance (BLBI) case that reached Rp138 trillion, various modes of corruption continue to be uncovered year after year.

Not only stopping there, corrupt practices have also spread to the mining, finance, and social assistance sectors, adding to the long list of scandals that have plunged the state’s finances. These cases involve various elements, from high-ranking state officials, entrepreneurs, to government institutions that should manage funds responsibly and transparently.

Here are 13 of the biggest mega corruption cases that shook Indonesia, summarized by Kapanlagi.com from various sources, Wednesday (26/2).

1. Corruption in Crude Oil & Corruption in Tin Harvey Moeis

© KapanLagi.com/Budy Santoso

Corruption of Crude Oil Rp193.7 Trillion

The Attorney General's Office has named seven suspects in the case of alleged corruption in the management of crude oil and refinery products of PT Pertamina and the cooperating contractor (KKKS) from 2018 to 2023. The state has suffered losses amounting to Rp193.7 trillion due to the manipulation of oil exports and imports, which has caused state subsidies to be wasted.

The corruption scheme was carried out by avoiding domestic crude oil bidding agreements, which ultimately led to crude oil imports being greater than the use of domestic production. In fact, the state's share of crude oil should have been utilized without the need for detrimental imports.

The suspects in this case include several high-ranking officials at PT Pertamina and related companies who are now detained by the Attorney General's Office for further investigation. Here is the list: RS (President Director of PT Pertamina Patra Niaga), SDS (Director of Feedstock Optimization and Products at PT Kilang Pertamina Internasional), YF (President Director of PT Pertamina Internasional Shipping), AP (Vice President of Feedstock Management at PT Kilang Pertamina Internasional), MKAN (Beneficial Owner of PT Navigator Khatulistiwa), DW (Commissioner of PT Navigator Khatulistiwa and also Commissioner of PT Jenggala Maritim) and YRJ (Commissioner of PT Jenggala Maritim and also President Director of PT Orbit Terminal Mera).

Corruption Case of Tin Harvey Moeis (Rp300 Trillion)

Harvey Moeis, the husband of artist Sandra Dewi, was sentenced to 6.5 years in prison for corruption in the management of tin commodity trading that caused state losses reaching Rp300 trillion. The judge also ordered Harvey to pay replacement money of Rp210 billion, with the threat of additional imprisonment if not paid within one year.

This case began with the manipulation of tin business management involving private companies and state officials to gain personal profit. The enormous state losses have made this case one of the largest scandals in the history of corruption in the mining sector.

Following further investigation and examination, the panel of judges then assessed that Harvey Moeis violated Article 2 Paragraph (1) in conjunction with Article 18 of Law Number 31 of 1999 concerning the Eradication of Corruption Crimes as amended by Law Number 20 of 2001 in conjunction with Article 55 paragraph (1) number 1 of the Criminal Code and Article 3 of Law Number 8 of 2010 concerning the Prevention and Eradication of Money Laundering Crimes in conjunction with Article 55 number 1 of the Criminal Code.

2. The Mega Corruption of BLBI & The Duta Palma Case

BLBI Case (Rp138 Trillion)

The Bank Indonesia Liquidity Assistance (BLBI) is a loan scheme issued by BI for banks affected by the 1998 crisis. However, most of these funds were misappropriated by the recipient banks. Of the Rp147.7 trillion disbursed, Rp138.4 trillion was declared detrimental to the state.

According to KPK Deputy Chairman Laode M Syarif in 2019, this case began when the BPPN and Sjamsul signed a settlement for the takeover of BDNI management through the Master Settlement Acquisition Agreement (MSAA) on September 21, 1998.

This case implicated several BI officials and entrepreneurs, including Sjamsul Nursalim and his wife, who are currently abroad. However, in 2021, the KPK issued an SP3 (Order to Terminate Investigation) for this case, which sparked controversy among the public.

Duta Palma Corruption Case (Rp86.5 Trillion)

The owner of PT Duta Palma Group, Surya Darmadi, is embroiled in a case of alleged corruption and money laundering in the palm oil plantation business in Indragiri Hulu, Riau. The state loss in this case reached Rp86.5 trillion due to land and tax abuse.

The calculation of state losses in this case fluctuated, with differences between direct state losses and impacts on the national economy.

3. Corruption in the Sale of TPPI Condensate & Asabri Case

Corruption in the Sale of Condensate by PT TPPI (Rp38 Trillion)

The corruption case involving the sale of condensate by PT Trans Pacific Petrochemical Indotama (TPPI) occurred between 2009 and 2011, resulting in state losses amounting to Rp38 trillion. The main modus operandi in this case was the sale of state-owned condensate oil without going through the auction process, which should have been conducted by PT Pertamina, but was instead sold directly to PT TPPI.

In this scandal, officials from the Ministry of Energy and Mineral Resources (ESDM) and the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) were also involved by granting direct sales permits to PT TPPI without following the appropriate regulatory mechanisms. As a result, the state lost control over the prices and revenues from the sale of the oil.

The Attorney General's Office has named several suspects, including high-ranking officials from SKK Migas and PT TPPI. Legal proceedings are ongoing with the hope that the embezzled assets can be returned to the state.

Asabri Corruption Case (Rp22.78 Trillion)

The corruption case involving PT Asabri (Persero) has become one of the largest financial scandals, implicating top executives of the state-owned insurance company. The state losses due to this case reached Rp22.78 trillion, resulting from fictitious investments made in the form of speculative stocks and low-quality mutual funds.

The modus operandi of the suspects involved diverting Asabri participants' investment funds to unhealthy companies, in exchange for personal profit. The perpetrators also manipulated financial reports to cover up losses, which led to the issue being uncovered only after an investigative audit was conducted by the Audit Board of Indonesia (BPK).

Some of the main suspects in this case are executives from Asabri and businessmen involved in investment management. The Attorney General's Office has seized various assets from the suspects, including land, properties, and luxury vehicles, to cover part of the state losses.

4. Jiwasraya Case & Corruption in Garuda Aircraft Procurement

Jiwasraya Case (Rp16 Trillion)

PT Asuransi Jiwasraya (Persero) became the center of public attention after a corruption case that caused state losses amounting to Rp16 trillion was uncovered. This scandal began from Jiwasraya's investments allocated to poorly performing stocks and unprofitable mutual funds, which subsequently resulted in the failure to pay customer claims.

The suspects in this case used Jiwasraya's investment funds for personal interests and provided non-transparent financial reports. As a result, thousands of Jiwasraya customers who were supposed to receive benefits from their insurance ended up losing their funds.

This case culminated in the sentencing of several high-ranking officials of Jiwasraya and the seizure of assets worth trillions of rupiah. The government was also forced to undertake massive restructuring to save Jiwasraya from bankruptcy.

Garuda Aircraft Procurement Corruption Case

The corruption case at PT Garuda Indonesia involved former President Director Emirsyah Satar, who was sentenced to five years in prison for receiving bribes in the procurement of Airbus aircraft and engines as well as Rolls-Royce.

This case began with the aircraft procurement conducted through a non-transparent tender process, where certain parties profited by bribing Garuda Indonesia officials to win the contracts. As a result, the state suffered billions of rupiah due to manipulated procurement prices.

In addition to Emirsyah Satar, this case also implicated several other Garuda officials and private parties involved in the bribery transactions. The Attorney General's Office and the Corruption Eradication Commission (KPK) have seized assets related to this case as part of efforts to recover state losses.

5. Corruption in 4G BTS Project & Century Case

4G BTS Project Corruption (Rp8.32 Trillion)

The corruption case of the 4G BTS construction project involving former Minister of Communication and Informatics Johnny G. Plate has gained attention for causing state losses of up to Rp8.32 trillion. This project, aimed at providing internet access in remote areas, was instead exploited for the personal interests of several parties.

The modus operandi of corruption in this project includes mark-up of equipment prices, procurement that does not meet specifications, and fictitious payments for unfinished work. Additionally, several contractors who were supposed to work on the project diverted funds to their personal accounts.

Johnny G. Plate and several officials from the Ministry of Communication and Informatics have been named suspects. The Attorney General's Office continues to investigate the flow of this corrupt money, including assets allegedly purchased using funds from corruption.

Bank Century Case (Rp7.4 Trillion)

The Bank Century bailout case has become one of the largest financial scandals in Indonesia, with total state losses reaching Rp7.4 trillion. This case began when the government injected bailout funds into Bank Century in 2008, under the pretext of preventing the impact of the global financial crisis.

However, these bailout funds were reportedly used for personal interests and did not align with the objectives of rescuing the bank. In the investigation, it was revealed that some of the funds were used to rescue certain customers, including several entrepreneurs and politicians who had interests in the bank.

Several officials from Bank Indonesia and the Ministry of Finance involved in the decision-making of this bailout have been questioned, but until now many parties believe this case is not fully resolved.

6. Corruption Cases of the Hambalang Megaproject, E-KTP Corruption, and Covid-19 Social Aid Corruption

The Hambalang Mega Project Corruption Case

The construction project of the National Education, Training, and Sports School Center (P3SON) in Hambalang, Bogor, initiated by the Ministry of Youth and Sports (Kemenpora), became one of the largest corruption scandals involving many high-ranking officials. Initially, this project was designed to be a training center for national athletes with a budget of up to Rp2.5 trillion, but ultimately stalled due to corruption.

The modus operandi in this case involved budget inflation, tender manipulation, and illicit funds flowing to several officials and politicians. A project that was supposed to be a national pride turned into a symbol of failure in state budget management due to systematic corruption practices.

This case implicated several high-ranking officials, including the former Minister of Youth and Sports, Andi Mallarangeng, who was sentenced to 4 years in prison for proven bribery. In addition, several members of the DPR were also involved in this scandal, making the Hambalang case one of the mega corruption cases in the infrastructure sector.

The E-KTP Corruption Case (Rp2.3 Trillion)

The corruption scandal of the electronic Identity Card (E-KTP) procurement project became one of the largest political corruption cases in Indonesia, with state losses reaching Rp2.3 trillion. This project, which started in 2011, aimed to create a more modern and efficient population administration system, but instead became a feast for politicians and entrepreneurs.

The corruption modus in this project involved tender rigging, inflated procurement prices, and fund flows to various parties, including DPR members who played a role in approving the project budget. One of the key figures in this scandal is the former Chairman of the DPR RI, Setya Novanto, who was sentenced to 15 years in prison after being proven to have received bribes from this project.

The E-KTP case reflects how the political and bureaucratic system in Indonesia is still vulnerable to structured corruption practices. Until now, the impact of this scandal is still felt, considering that the E-KTP project continues to face various technical and administrative problems due to past irregularities.

The Covid-19 Social Assistance Corruption Case

The Covid-19 pandemic that hit Indonesia in 2020 should have been a momentum for the government to show its support for the affected communities. However, the social assistance (bansos) that should have been distributed to the poor has instead become a breeding ground for corruption, with state losses estimated to reach hundreds of billions of rupiah.

This case implicates former Minister of Social Affairs, Juliari Batubara, who was proven to have received bribes from the procurement project for food packages for communities affected by the pandemic. The modus operandi used was to inflate the price of the social assistance packages and request a commission from the vendors appointed as suppliers. From this practice, Juliari received bribes amounting to Rp32.4 billion.

This case sparked public outrage, considering that the bansos funds were supposed to be used to help people facing an economic crisis due to the pandemic. Juliari Batubara was ultimately sentenced to 12 years in prison, but this case shows that even in the midst of a national disaster, corruption continues to run rampant in Indonesia.

7. FAQ

1. What is the main modus operandi in the Rp193.7 trillion crude oil corruption?

The main modus operandi is the manipulation of crude oil exports and imports by Pertamina and KKKS for personal gain.

2. Why is the BLBI case referred to as one of the largest mega corruption cases?

Because it involves state funds of Rp138 trillion and creates a significant domino effect on the Indonesian economy.

3. What is Harvey Moeis's role in the Rp300 trillion tin corruption case?

Harvey is suspected of being involved in the management of tin trade that harms the state through illegal business practices.

4. What is the impact of Covid-19 social aid corruption?

The impact is very large because it concerns aid funds that should have been distributed to communities affected by the pandemic.

(kpl/rmt)