KPK Names Two Suspects in PGN Gas Trade Corruption Case
Reporter
April 12, 2025 | 12:04 pm
TEMPO.CO, Jakarta - The Corruption Eradication Commission (KPK) has named two suspects in a corruption case involving the sale and purchase of gas at PT Perusahaan Gas Negara (PGN).
The suspects are Iswan Ibrahim, former Commissioner of PT Inti Alisindo Energi (IAE), and Danny Praditya, Director of PT PGN.
KPK's Director of Investigation, Asep Guntur Rahayu, stated that both suspects have been charged under Article 2 paragraph 1 and/or Article 3 of Law Number 31 Year 1999 on Corruption Crimes, in conjunction with Article 55 paragraph 1 of the Criminal Code.
"Detention has been imposed on suspects ISW and DP at the branch detention center from the class 1 state detention center in East Jakarta for 20 days starting from April 11, 2025, to April 30, 2025," Asep announced at the KPK’s Red and White Building in Central Jakarta on Friday, April 11, 2025.
The KPK suspects that the case has caused a state loss of US$15 million, equivalent to Rp252.2 billion. The case dates back to August 2017, when Danny offered several gas traders, including PT Isar Gas, the opportunity to become a local distributor company (LDC) for PGN.
Iswan Ibrahim, who was also the President Director of PT Isar Gas, was involved in this offer.
"Conducting presentations to several gas traders, including PT Isar Gas, to offer them to become a local distributor company (LDC) of PT PGN," Asep explained.
Asep continued by detailing that Danny instructed his subordinates to cooperate with PT IAE in managing and trading gas. PT Isar Gas also requested an advance payment of US$ 15 million for gas purchases from PGN, as well as offering PT PGN the chance to acquire some of their shares.
However, Asep revealed that the advance payment was used to settle PT Isar Gas’s debts with unrelated parties, including PT Pertagas Niaga, PT Bank Negara Indonesia (Persero) Tbk., and PT Isar Aryaguna.
Gas supplied by PT IAE to PGN originated from the allocation of Husky Cnooc Madura Ltd. (HCML) in East Java. However, Asep noted that the supply in this region would not be enough to meet future demand.
He explained that from 2019 to 2021, PT PGN’s gas allocation would decrease. "This update was made due to the instructions of Mr. DP after the BOD meeting on October 10, 2017," Asep said.
On November 2, 2017, Danny and Iswan Ibrahim signed four documents, including the Joint Agreement, Gas Sale and Purchase Agreement (PJBG), Prepayment Joint Agreement, and Joint Agreement for Infrastructure Utilization. A few days later, on November 9, 2017, PT PGN made the US$ 15 million advance payment to PT IAE, following Danny’s instructions.
Asep pointed out that Iswan was aware that the gas supply from PT IAE could not meet the agreed contract terms. On December 2, 2020, the then Head of the Downstream Oil and Gas Regulatory Agency (BPH Migas), M. Fanshurullah Asa, sent a letter to the Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, prohibiting the tiered trade practice between PT IAE and PT PGN.
"Because it violates Ministry of ESDM Regulation number 6 of 2016 concerning Provisions and Procedures for the Determination of Allocation and Utilization as well as the price of natural gas," Asep added.
Additionally, Commissioner of PT PGN, Arcandra Tahar, sent a letter to the President Director of PT PGN. Asep mentioned that the letter discussed recommendations from the Board of Commissioners to terminate the contract and pursue legal action regarding the advance payment made to PT IAE.
On October 15, 2024, the Supreme Audit Agency (BPK) issued an investigative examination report, revealing a state loss of US$15 million from gas sale and purchase transactions between PT PGN and PT IAE from 2017 to 2021.
"Number 56/LHP/XXI/10/2024 dated October 15, 2024, where the state loss that occurred amounted to US$15 million," Asep said.
In the investigation, the KPK has questioned 75 witnesses and seized evidence, including documents, electronic evidence, and US$1 million in cash. "Searches have been conducted in eight locations of houses or offices or rooms or other enclosed places," Asep concluded.
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