PT Pertamina EP Responds to Attorney General Office Investigation into Bekasi Regional Oil and Gas BUMD Governance Corruption Allegations

State-owned energy giant PT Pertamina (Persero) has officially responded to an ongoing grand corruption investigation led by the Attorney General’s Office (AGO) regarding alleged governance irregularities involving a Regional-Owned Enterprise (BUMD) in Bekasi. The probe targets PT Minyak dan Gas Bumi (Perseroda), a regional oil and gas enterprise owned by the Bekasi Regency and City governments, focusing specifically on a Joint Operation Scheme (Kerja Sama Operasi or KSO) established with PT Pertamina EP that spans a 15-year period from 2009 through 2024.

The investigation, spearheaded by the Junior Attorney General for Special Crimes (Jampidsus), has triggered widespread attention within Indonesia’s energy sector due to the involvement of multiple high-profile corporate entities and regional government bodies. As investigators aggressively gather evidence, parse financial records, and conduct extensive raids across public and private offices, Pertamina EP has stepped forward to affirm its commitment to upholding the rule of law and maintaining absolute transparency throughout the judicial process.

The Scope of the Investigation and Major Raids

The corruption inquiry entered a public phase when Jampidsus investigators executed coordinated search and seizure operations across several strategic locations in Jakarta and Bekasi. The aggressive evidence-gathering campaign is designed to unearth illicit financial flows, contractual discrepancies, and potential abuse of authority in the management of regional oil and gas assets.

According to official statements from the Attorney General’s Office, the search warrants targeted administrative, municipal, and corporate offices believed to hold crucial paper trails and digital evidence. The raided locations include:

• The Secretariat General Office of Bekasi City
• The Legal Bureau Section of the Bekasi City Regional Secretariat
• The corporate headquarters of PT Minyak dan Gas Bumi Kota Bekasi (Perseroda)
• The corporate offices of Foster Oil & Energy Pte. Ltd., located within the Sampoerna Strategis Square complex along Jalan Jenderal Sudirman, Jakarta
• The Environmental Agency (Dinas Lingkungan Hidup) of Bekasi City
• The Regional Revenue Agency (Badan Pendapatan Daerah or Bapenda) of Bekasi City

The inclusion of Foster Oil & Energy Pte. Ltd. in the raids highlights the intricate web of third-party corporate partnerships often layered into regional oil and gas KSO agreements. Investigators are scrutinizing whether these private entities operated within regulatory boundaries or if they served as conduits for profit-shifting, misallocation of state revenues, or the unlawful circumvention of upstream oil and gas procurement procedures.

Background and Context of the Pertamina EP and Bekasi BUMD Partnership

To fully understand the gravity of the ongoing probe, it is necessary to examine the structural mechanics of the partnership between PT Pertamina EP and PT Minyak dan Gas Bumi Kota Bekasi (Perseroda). Under Indonesian regulatory frameworks, regional BUMDs are permitted to participate in the upstream petroleum sector—often referred to as Participating Interest (PI) or through specialized Joint Operation Schemes—to boost regional revenues (Pendapatan Asli Daerah or PAD) and foster local economic development.

The KSO in question was initiated in 2009, an era marked by aggressive drives to maximize mature oil and gas fields across the Indonesian archipelago through domestic partnerships. The operational epicenter of this collaboration is the Jatinegara Field, a mature asset requiring specialized technical management and capital deployment to maintain and optimize production output.

However, complex multi-decade arrangements between state-owned subsidiaries and regional enterprises frequently encounter regulatory friction, particularly regarding revenue-sharing formulas, operational cost recoveries, environmental compliance, and the strict governance standards mandated by Indonesia’s upstream oil and gas regulatory task force, SKK Migas. Investigators are probing whether the contractual execution between 2009 and 2024 deviated from standard operating procedures, resulting in potential state financial losses.

Official Response from PT Pertamina EP

Responding to the mounting legal pressure and the extensive raids conducted by the Attorney General’s Office, Pinto Budi Bowo Laksono, Manager of Communication Relations & CID at PT Pertamina EP, issued a formal statement on behalf of the company. He emphasized that the subsidiary of PT Pertamina (Persero) remains fully cooperative and respectful of the legal proceedings currently underway.

"The company respects the ongoing legal process and stands ready to cooperate," Pinto stated in an official release.

Pinto further clarified the operational timeline regarding the Jatinegara Field, noting that the existing KSO framework is approaching its predetermined contractual expiration. Rather than renewing the joint operation under the current terms, Pertamina EP is preparing to internalize the management of the field, transitioning it into a fully independent corporate operation.

"Along with the expiration of the KSO contract period, the operational continuity of the Jatinegara Field will be managed directly by Pertamina EP through own operations, starting in February 2026," Pinto explained.

He also underscored the company’s institutional dedication to integrity, ethics, and strict regulatory adherence, noting that all corporate actions moving forward will prioritize transparency and anti-corruption measures.

"Pertamina EP is committed to conducting its operations and business in accordance with the principles of transparency and accountability, in line with good corporate governance (GCG) practices," Pinto concluded.

Operational Transition of the Jatinegara Field

The transition of the Jatinegara Field from a Joint Operation Scheme to direct Pertamina EP management ("own operation") by February 2026 represents a crucial milestone for the asset. Mature fields like Jatinegara often experience declining reservoir pressures and require enhanced oil recovery (EOR) techniques or specialized maintenance regimens to sustain commercial viability.

The timing of the legal investigation—occurring as the 15-year KSO nears its natural conclusion—adds an extra layer of complexity to the handover. Industry analysts note that audits of mature field partnerships often intensify toward the end of contract lifecycles, as regulators and state auditors reconcile production numbers, capital expenditures, environmental rehabilitation liabilities, and revenue distributions. Whether the transition will proceed unhindered by the Jampidsus probe remains a focal point for industry observers watching how Pertamina EP manages both legal compliance and field productivity.

Broader Implications for Regional BUMDs and Upstream Governance

The corruption probe into Bekasi’s regional oil and gas BUMD serves as a cautionary tale for local government-owned enterprises across Indonesia that venture into the highly technical and capital-intensive energy sector. While BUMDs are established to generate financial dividends for regional development, critics have long argued that municipal governments frequently lack the technical expertise, regulatory oversight, and corporate governance maturity required to manage high-stakes upstream petroleum ventures.

When regional enterprises partner with private contractors and national oil companies without rigorous internal controls, the risk of governance breakdowns, conflict of interest, and fiscal leakage increases exponentially. The ongoing investigation by the Attorney General’s Office sends a clear signal that state scrutiny over regional extractive industries is tightening.

As the Jampidsus team continues to analyze evidence seized from the Bekasi city government offices and corporate headquarters in Jakarta, the legal fallout is expected to widen. The findings could potentially lead to structural reforms in how regional BUMDs engage in joint operations, reinforcing the imperative for absolute transparency, strict compliance with the State Finance Law, and alignment with Good Corporate Governance standards across all tiers of Indonesia’s energy landscape.