Son of oil tycoon arrested; is his father next

Public trust in the government continues to diminish after a Rp 193.7 trillion (US$11 billion) graft case involving subsidiaries of state-owned oil and gas holding company Pertamina sparked national outcry. Among the nine suspects in the case is Kerry Adrianto Riza, the 38-year-old son of politically connected oil tycoon Muhammad Riza Chalid.

Kerry was arrested in relation to his role as the beneficiary owner of PT Navigator Khatulistiwa and is alleged to have profited from acts of corruption ranging from import-export schemes to fuel adulteration. He may be charged with personal enrichment through inflated fuel shipping contracts for Pertamina.

Now that he is in custody, a question arises: Does President Prabowo Subianto have the guts to nab Riza, widely regarded as the “godfather of oil”?

The Attorney General's Office (AGO) has taken steps in this direction by raiding Riza’s home, where investigators confiscated Rp 883 million and US$1,500 in cash, 89 documents, and two computers. "That is what will be studied and developed. Why [were these materials] in this individual's house? Was he involved? What was his role?" said AGO spokesperson Harli Siregar.

Riza’s control over the country’s oil business is certainly noteworthy, as it spans decades back to Soeharto’s New Order regime. His political clout is even more remarkable since he has long been affiliated with the political elite of different regimes. Among them is Prabowo himself, whom Riza endorsed and donated Rp 500 billion to his presidential campaign in 2014. This raises even more questions about why the President has taken a bold stance in going after such a powerful ally now.

Amid the arrests and nationwide anger over the Pertamina fuel scandal, Prabowo invited ministers from his Red and White Cabinet, institutional heads as well as military and police officials to his office to address the issue of corruption plaguing the country. Deputy Home Minister Bima Arya said afterward that the President was committed to eradicating corruption and planned to create a state body to save the “people’s” money. “’It would be better if those hundreds of trillions were used for nutritious food, education, and health care’,” Bima said, reportedly quoting the President.

Prabowo has turned the fuel scandal on its head to fit his populist rhetoric, continuing to “align” himself with the people. "The President is cleaning house. Don’t play around," Dedek Prayudi, a senior official at the Presidential Communications Office, wrote on his social media account.

However, suspicions have been raised over Prabowo’s intentions to tackle widespread corruption, that it is merely a ploy to shuffle players within the oil industry, specifically targeting conglomerates. Recent appointments at state-owned enterprises (SOEs) and leaving certain businessmen untouched seem to point to this dreaded possibility.

One month after Prabowo took office, SOEs Minister Erick Thohir appointed Simon Alosyus Mantiri as president director and Mochamad Iriawan as president commissioner of Pertamina. Both are members of the Gerindra Party, of which Prabowo is both founder and general chairman.

Their appointment led to public scrutiny at the time, as well as discussion over potential conflicts of interest and noncompliance with government regulations if Simon and Iriawan retained their dual roles in an SOE and the de facto ruling party.

Fueling further concerns about political patronage, Bagaskara Ikhlasulla Arif and Joko Priyambodo, nephews of Prabowo’s staunch ally and predecessor Joko “Jokowi” Widodo, also hold high-ranking positions at Pertamina. Their appointments last year sparked accusations of cronyism, with critics questioning the possible political influence behind their sudden promotions.

Basuki Tjahaja Purnama, a former Jakarta governor and former Pertamina president commissioner, has also chimed in, saying that corruption is deeply rooted in the oil and gas giant and involves more than the nine named suspects. “In my opinion, this has been an ongoing game that each [head of state] has refused to stop,” Basuki said in an interview with digital media outlet Narasi, suggesting this was common knowledge.

Prabowo’s willingness to finally step in and take action against the infamous “oil-mafia” takes courage. Assuming this move is genuine and not just for show, it is one that even Jokowi was unable to make. However, his selective approach leaves room for doubt: If political allies are spared and competitors are removed, this is not a fight against corruption but a mere reshuffle under the guise of a crackdown.