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View all search resultsAnalysis: ‘Oil godfather’ named suspect, yet justice remain islands apart
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24/7: The Refinery Unit VI is seen lighting up the nightscape of Pertamina Balongan in Indramayu, West Java. (JP/Jerry Adiguna)
A
fter five months of intense speculation, Muhammad Riza Chalid, dubbed the “godfather of oil”, has been named as a suspect by the Attorney General’s Office (AGO) for his alleged role in a colossal Rp 285 trillion (US$17.4 billion) graft case. The scandal implicates subsidiaries of state-owned oil and gas holding company Pertamina as well as third-party contractors.
The AGO plans to charge Riza as the beneficial owner of PT Tanki Merak and PT Orbit Terminal Merak, both of which were allegedly at the center of an intricate scheme to secure fraudulent government contracts with Pertamina. The illicit activity reportedly led to substantial state losses of Rp 2.9 trillion.
The massive scandal first came to public attention in late February, when the AGO announced the arrest of nine individuals in connection with racketeering and illicit gains from activities conducted between 2018 and 2023, including fuel adulteration and import-export fraud. Among the initial nine detainees was Riza’s son, Muhammad Kerry Adrianto Riza, who was implicated as the beneficial owner of PT Navigator Khatulistiwa, which allegedly profited from marking up contracts for shipping Pertamina’s fuel products.
Kerry’s arrest set the stage for the investigation targeting his father. Following his detention, the AGO searched both Kerry and Riza’s properties, confiscating documents, hundreds of millions in cash, and family computers, all of which pointed to an intricate web of illicit dealings.
The AGO’s investigation has hit Riza with a reality check against his long-held “godfather” status. The 65-year-old businessman and oil tycoon has a career spanning decades back to the New Order regime of autocrat Soeharto. After Soeharto's fall, Riza managed to maintain a strong influence across several subsequent administrations.
It is an open secret that the oil magnate discreetly bankrolled numerous presidential campaigns, including that of President Prabowo Subianto, who reportedly received Riza's endorsement and a Rp 500 billion donation for his 2014 campaign. Seeing as the current administration is actively pursuing Riza's empire, this suggests a significant shift in their previously speculated ties.
It is believed that the judiciary’s investigation into Riza could extend beyond a noble quest to eradicate systemic corruption, possibly as a deliberate strategy to depose the long-standing "mafia don" of the oil and gas sector, though no clear successor has been identified as yet.
