Indonesia court jails ex-CEOs of Pertamina units in graft case

JAKARTA, Feb 27 (Reuters) – An Indonesian court has jailed nine people in a major corruption case involving subsidiaries of state energy firm Pertamina, including two former chief executives of its units, which prosecutors say caused $17 billion in state losses.

The case, which centres on alleged illegal leasing of a fuel terminal and illegal imports of crude oil, among other offences, is one of the biggest launched under the administration of President Prabowo Subianto, who has vowed to eradicate corruption.

The nine were sentenced by the Central Jakarta Court, with the reading of the verdicts starting on Thursday afternoon and continuing into the early hours of Friday. The defendants were sentenced to prison terms ranging from nine years to 15 years, after prosecutors had sought terms of 14 to 18 years.

Yoki Firnandi, former chief executive of Pertamina International Shipping, and Riva Siahaan, former Pertamina Patra Niaga chief executive, each received a nine-year sentence from the panel of judges.

Muhamad Kerry Adrianto Riza, a beneficial owner of a fuel terminal leased by Pertamina, was jailed for 15 years for his involvement, less than the 18 years sought by prosecutors.

Riza is the son of businessman Mohammad Riza Chalid, who has been named a suspect in the case and who the police said is now at large.

The three men had each denied the charges against them and pleaded not guilty, local media reported during the trial.

Riza’s lawyer Patra Zen said on Friday his client rejected the ruling and would appeal.

Outside the court on Friday, Firnandi said he was disappointed by a verdict that he called a farce, and said he would discuss with his counsel about appealing.

Siahaan’s lawyer Luhut Pangaribuan said he was saddened and disappointed by the verdict.

Pertamina said it respects the court’s ruling and reiterated it has “zero tolerance towards corruption,” company spokesperson Muhammad Baron told Reuters.

“We continue to make improvements and transform in carrying out business processes and operations,” he said, adding that the company is ready to give legal assistance to the defendants until the court issues a legally binding ruling.

(Reporting by Fransiska Nangoy, Ananda Teresia, Stanley Widianto, and Bernadette Christina; Editing by John Mair, Martin Petty and Thomas Derpinghaus)