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After 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.
Former president Joko “Jokowi” Widodo had vowed to demolish the “oil mafia” during his tenure, but ultimately fell short of fulfilling that promise by the end of his two terms. Now, President Prabowo has the unprecedented opportunity to succeed where his predecessor did not, though whether true justice will be served remains to be seen.
As with his son, Riza has been named as a suspect alongside eight new individuals from both the public and private sectors, bringing the total number of graft suspects in this particular case to 18. The oil magnate remains at large, however, adding another layer of complexity to this high-profile case.
While law enforcement agencies have shown resolve in capturing Riza, bringing him to justice faces a formidable hurdle. The AGO says Riza has fled the country and allegedly taken refuge in Singapore, a popular “safe haven” destination among many Indonesian graft suspects and convicts.
Riza’s eluding authorities resembles the protracted saga of Paulus Tannos, another prominent businessman and graft convict. Indonesia had been making years-long efforts to track Tannos and seek his extradition, but with little success until recently.
Earlier this year, Tannos was finally located in Singapore, where he was detained by local authorities, who are set to send him back to Indonesia following the recent ratification of a bilateral extradition treaty. After his return, Tannos is slated to face trial in Indonesian courts for his involvement in the infamous graft case pertaining to the electronic identification (e-ID) card project, which incurred total state losses of Rp 2.3 trillion, or around $140 million.
However, the extradition process has been dragging on for Tannos, who holds Singapore permanent residency, is also alleged to have a Guinea-Bissau passport, and has now exhausted every avenue to avoid returning to Indonesia. During the 71-year-old’s extradition hearing, his attorney argued against his return by presenting various reasons, including perceived differences between the extradition treaty and Singaporean law, his ailing health, and his fear of an “oppressive”, unfair trial back home.
In a move described as ironic, given his alleged involvement in siphoning millions from the state coffers, Tannos even suggested his willingness to return voluntarily "provided the Indonesian courts will be fair, with a judge that is not corrupt". This statement highlights the challenges Indonesian authorities face in convincing fugitives to return and face justice, especially when they leverage legal technicalities.
As the situation unfolds, Singapore’s foreign ministry has said Riza is not currently in the island state, while other reports have indicated he might be in neighboring Malaysia. The ongoing difficulty in extraditing figures like Tannos, who has been a suspect since 2019 and a fugitive since 2021, raises significant concerns.
If someone like Tannos can continue to evade the law, there is a distinct possibility that an even more influential figure like Riza could rustle up considerable resources to maneuver his way out of returning to the country and facing justice, further challenging Indonesia's efforts to combat high-level corruption.
