Pertamina governance crisis and the lingering ghost of corruption in Indonesia: Comment


A worker fills a scooter with fuel at a station of Indonesia's state-owned oil company Pertamina in Surabaya on March 4, 2025. - AFP

JAKARTA: The recent allegations of corruption within state-owned oil and gas company PT Pertamina have once again cast a dark shadow over the nation’s energy sector.

The Attorney General’s Office (AGO) has estimated potential state losses of Rp 193.7 trillion (US$11.87 billion) due to mismanagement and corrupt practices between 2018 and 2023. This revelation underscores the persistent governance failures that have plagued Pertamina for decades, reinforcing the deeply entrenched culture of economic patronage that dates back to the Suharto era.

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