Pertamina EP Responds to Corruption Investigation Into Bekasi Regional Oil and Gas Company Operations

The Indonesian state-owned energy giant, PT Pertamina (Persero), through its subsidiary Pertamina EP, has officially addressed the ongoing corruption investigation conducted by the Attorney General’s Office (Kejaksaan Agung) regarding the management of regional oil and gas assets in Bekasi. The investigation centers on allegations of corruption involving the regional-owned enterprise (BUMD) PT Minyak dan Gas Bumi (Perseroda) and its long-standing Joint Operation (KSO) with Pertamina EP, covering the period from 2009 to 2024.

As the legal proceedings gain momentum, the spotlight has shifted toward the governance structures of regional oil and gas entities and their partnerships with national energy corporations. The Attorney General’s Office, specifically the Junior Attorney General for Special Crimes (JAM PIDSUS), has intensified its efforts to uncover potential irregularities in how these regional entities managed state-mandated resource operations over the last fifteen years.

The Scope of the Investigation and Legal Actions

The investigation into the alleged corruption in Bekasi’s oil and gas governance is not a localized incident but a significant legal development involving multiple stakeholders. On September 18, 2024, the Attorney General’s Office confirmed that it is actively collecting evidence to build a case against parties suspected of administrative and financial misconduct.

To facilitate this, investigators have executed a series of search warrants across various high-profile locations. The reach of this operation demonstrates the seriousness with which the state is treating the case. Key locations subjected to these searches include:

• The Secretariat of the City of Bekasi.
• The Legal Division of the Bekasi City Secretariat.
• The headquarters of PT Minyak dan Gas Bumi Kota Bekasi (Perseroda).
• The offices of Foster Oil & Energy Pte. Ltd., located at the Sampoerna Strategis building in the Sudirman business district, Jakarta.
• The Bekasi City Environment Agency.
• The Bekasi City Regional Revenue Agency (Bapenda).

These locations suggest that the investigation is not limited to the technical operation of oil fields but extends to the financial oversight, regulatory compliance, and inter-agency coordination between local government bodies and private or regional corporate partners.

Pertamina EP’s Official Stance

In response to the escalating situation, Pinto Budi Bowo Laksono, Manager of Communication Relations & CID at PT Pertamina EP, issued a formal statement affirming the company’s commitment to the rule of law. "The company respects the ongoing legal process and is fully prepared to cooperate with the authorities," he stated.

Pertamina EP has emphasized that it operates under strict corporate governance guidelines. The company maintains that its involvement in the KSO with the Bekasi regional entity was bound by specific contractual obligations that governed the management of the Jatinegara Field. According to the company, this collaboration is scheduled to conclude in February 2026, at which point the Jatinegara Field will transition to a self-operated model (own operation) directly managed by Pertamina EP.

"Pertamina EP remains committed to conducting its operations and business affairs based on the principles of transparency and accountability, in line with Good Corporate Governance (GCG) practices," the statement added. This public assertion is aimed at distancing the national entity from any potential malfeasance occurring at the regional partnership level.

Background: The Role of BUMDs in the Oil and Gas Sector

To understand the gravity of this investigation, it is essential to consider the role of Regional-Owned Enterprises (BUMDs) in Indonesia’s energy sector. Under the 2001 Oil and Gas Law, local governments are encouraged to participate in the management of natural resources within their jurisdictions through the formation of BUMDs. These entities often act as partners to national players like Pertamina, providing local insight and facilitating regional development.

However, the intersection of regional political interests and the technical, capital-intensive nature of the oil and gas industry has historically created opportunities for administrative friction. Critics and energy analysts have long pointed out that the lack of technical expertise in some BUMDs, combined with complex profit-sharing arrangements, can lead to inefficiencies or, as alleged in this case, systemic corruption.

The Jatinegara Field, which has been the subject of this joint operation since 2009, represents a critical asset for the region. The transition to "own operation" by February 2026 is intended to streamline the management of the field, effectively phasing out the complex KSO structure that has been in place for over a decade.

Implications for the Energy Industry

The investigation into the Bekasi-based BUMD serves as a wake-up call for the broader Indonesian energy sector. It highlights several key areas of concern:

1. Regulatory Oversight: The involvement of multiple government offices—including the Environment Agency and the Revenue Agency—suggests that the investigation is looking into potential discrepancies in how tax revenues and environmental mitigation funds were managed during the KSO period.
2. Contractual Integrity: The focus on private entities like Foster Oil & Energy Pte. Ltd. indicates that investigators are scrutinizing the flow of funds between public regional entities and private contractors. This could set a precedent for future audits of other BUMD-Pertamina partnerships across the archipelago.
3. Regional Governance Reform: This case may trigger a push for more stringent vetting processes for BUMD leadership and the adoption of more transparent, digital-first financial management systems to ensure that regional oil and gas assets do not become vehicles for rent-seeking behavior.

A Chronology of Potential Misconduct

While the investigation is in its early stages regarding specific charges, the timeframe—2009 to 2024—is expansive. This fifteen-year window covers multiple regional administration cycles in Bekasi. The investigation is likely to analyze:

• The 2009 Foundation: The initial signing of the KSO and the selection of partners.
• The Middle Years (2015–2020): A period often marked by audits in the oil and gas sector where production output and financial reporting are cross-referenced.
• The Recent Period (2021–2024): The focus here is likely on the finalization of contracts and the preparations for the transition to Pertamina EP’s sole operation.

Broader Economic and Legal Impact

The ongoing investigation is likely to cause a temporary slowdown in decision-making processes for similar BUMD projects in West Java. While Pertamina EP has assured stakeholders that operations at the Jatinegara Field will continue as scheduled, the legal uncertainty surrounding the partners involved could lead to delays in procurement, maintenance scheduling, and capital expenditure for the field.

Furthermore, the involvement of the Attorney General’s Office underscores the government’s intent to curb corruption in the natural resources sector, a key pillar of President-elect Prabowo Subianto’s platform regarding resource nationalism and anti-corruption. By targeting the governance of BUMDs, the state is signaling that regional autonomy does not equate to freedom from federal accountability.

Conclusion: Moving Toward 2026

As February 2026 approaches, the transition of the Jatinegara Field to direct management by Pertamina EP will likely be accelerated by the pressures of this investigation. For the local government of Bekasi, the outcome of this case will be a defining moment in how it manages its future energy assets.

The public, the energy industry, and local investors are now awaiting the next steps from the Attorney General’s Office. With the evidence collected during the recent raids now under analysis, the legal community expects that the investigators will soon move to identify potential suspects and formally outline the specific nature of the financial losses incurred by the state.

For now, the mantra from all involved parties—Pertamina EP and the local government agencies—remains one of cooperation. However, the depth and breadth of the searches indicate that the "clean-up" of the sector’s regional governance is only just beginning. As the case progresses, the primary objective will remain the protection of state assets and the restoration of public trust in the management of Indonesia’s vital energy resources. The resolution of this case will likely serve as a blueprint for the future of BUMD partnerships, emphasizing that in the high-stakes world of energy, transparency is not optional, but the bedrock of institutional longevity.