Pertamina Patra Niaga CEO’s Salary Under Scrutiny Amid Corruption Scandal

Jakarta – The salary of Pertamina Patra Niaga’s President Director, Riva Siahaan, has drawn public attention following his indictment by the Attorney General’s Office (AGO) in an alleged corruption case involving crude oil and refinery product management at PT Pertamina (Persero). In addition to Riva, several other Pertamina executives have also been named suspects.

The salaries and benefits of Pertamina’s board of directors are regulated under the Ministry of State-Owned Enterprises (BUMN) Regulation No. PER-13/MBU/09/2021, which sets guidelines for executive compensation, including base salary, allowances, facilities, and performance-based incentives.

At Pertamina Patra Niaga, the CEO’s salary is determined by the company’s internal guidelines, while other directors receive 85% of the CEO’s salary. Apart from their base salary, directors also receive various benefits, including:

• A holiday allowance (THR) of up to one month’s salary per year
• Housing allowance at 85% of the CEO’s housing benefits
• Post-retirement insurance, with premiums covered up to 25% of annual salary
• Company car and health insurance benefits
• Legal assistance when required in an official capacity

Additionally, directors are entitled to performance-based incentives as a reward for achieving company profit and performance targets. If the company meets its profit goals, the incentives are awarded as Long-Term Incentives (LTI).

According to Pertamina Patra Niaga’s 2023 Financial Report, total compensation for the board of directors and commissioners reached $19.1 million, or approximately Rp312 billion (based on an exchange rate of Rp16,370 per USD). With seven commissioners and seven directors, each individual is estimated to receive an average annual compensation of $1.36 million or around Rp21.8 billion.

Pertamina Corruption Case Involving Crude Oil Management

In the corruption case involving Riva Siahaan, the AGO has indicted nine suspects, including six Pertamina employees and three private sector individuals.

Among the Pertamina executives charged are:

• SDS (Director of Feedstock and Product Optimization at PT Kilang Pertamina Internasional)
• YF (President Director of PT Pertamina International Shipping)
• AP (VP of Feedstock Management at PT Kilang Pertamina Internasional)
• MK (Director of Central Marketing and Commerce at Pertamina Patra Niaga)
• EC (VP of Trading Operations at Pertamina Patra Niaga)

Meanwhile, the private sector suspects include:

• MKAN (Beneficial Owner of PT Navigator Khatulistiwa)
• DW (Commissioner of PT Navigator Khatulistiwa and PT Jenggala Maritim)
• YRJ (Commissioner of PT Jenggala Maritim and President Director of PT Orbit Terminal Mera)

The AGO estimates total state losses from this corruption case to be Rp193.7 trillion. This includes Rp35 trillion in losses from domestic crude oil exports, Rp2.7 trillion from crude oil imports through brokers, and Rp9 trillion from fuel imports through brokers. Additionally, losses from compensation payments in 2023 amounted to Rp126 trillion, while fuel subsidies in the same year reached Rp21 trillion.

Temukan berita dan artikel lainnya di Google News