Indonesia’s ‘Gasoline Godfather’ a suspect in second graft case
Riza is designated a suspect along with six others in a probe into dealings at Pertamina Energy Trading
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[JAKARTA] Indonesia has named reclusive commodities merchant Mohammad Riza Chalid as a suspect in a second corruption case tied to crude oil and fuel procurement, putting renewed scrutiny on legacy practices in one of South-east Asia’s largest energy markets.
Riza was designated a suspect along with six others in a probe into dealings at Pertamina Energy Trading, also known as Petral, during a period from 2008 to 2015, a spokesman from the Attorney General’s Office said on Friday (Apr 10). Investigators are examining alleged tender manipulation, information leaks and non-competitive pricing practices, according to a statement.
Petral was Pertamina Persero’s Singapore-based trading unit that has subsequently been shuttered.
The case adds to a growing list of legal troubles for Riza, a longtime influential figure in Indonesia’s oil trading market who is often dubbed the “Gasoline Godfather”. He was previously named a suspect in a separate probe into crude oil and refinery product management from 2018 to 2023.
Riza’s son, Muhamad Kerry Adrianto, was recently sentenced to 15 years in prison in a corruption case involving about US$17 billion.
In the latest case, Riza, as the beneficial owner of several companies whose details have not been disclosed, is suspected of influencing procurement processes for crude oil, refined products and shipping, causing losses to Pertamina. The total amount of losses to the state is still being calculated, prosecutors said.
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Riza has been on the Indonesian government’s wanted list since mid-last year, with an Interpol Red Notice issued in January, according to the spokesman. His whereabouts remain unknown.
Authorities have detained five other suspects for 20 days, while one other person has been placed under house arrest for health reasons, according to the statement.
Prosecutors have questioned dozens of witnesses, including current and former officials at Pertamina’s trading and procurement units, as well as private sector players involved in oil import supply chains.
Former energy minister Sudirman Said has also been questioned as a witness, underscoring the probe’s reach. BLOOMBERG
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