Jakarta. The Attorney General’s Office (AGO) announced on Wednesday that it has gathered evidence suggesting fraudulent blending of Pertamax gasoline with a much lower-grade fuel, as part of its ongoing investigation into a major corruption scandal at state-run oil company Pertamina. 

The scandal, which involves executives from Pertamina’s subsidiaries and private-sector collaborators, is estimated to have caused Rp 193.7 trillion ($11.9 billion) in state losses.

Earlier reports indicated that executives at Pertamina Patra Niaga, the company’s sales arm, had mixed Pertamax (RON 92) with Pertalite (RON 90) -- a government-subsidized fuel -- between 2018 and 2023. However, AGO Director of Corruption Investigation Abdul Qohar said that the blend involved an even lower-grade gasoline, RON 88, rather than Pertalite.

“The evidence from past transactions shows that RON 88 gasoline was blended with RON 92 gasoline [Pertamax],” Abdul said during a press conference in Jakarta.

“This blend was then marketed as RON 92 gasoline. We will involve experts to determine whether the final product actually had an octane rating of 92. However, the transaction records and evidence we have confirm our findings,” he added.

Discontinued RON 88 and Pertamax Pricing
Pertamina largely discontinued the production and distribution of RON 88 gasoline, known as Premium, and replaced it with Pertalite, which is sold at a fixed government-subsidized price of Rp 10,000 per liter. In contrast, Pertamax does not receive subsidies and is marketed as a higher-octane fuel. On Wednesday, Pertamax was priced at approximately Rp 12,800 per liter.

The AGO has arrested nine suspects in connection with the scandal, including two CEOs from Pertamina subsidiaries. 

Pertamina Patra Niaga denied on Wednesday that it had blended Pertamax with lower-grade fuels.

Acting CEO Mars Ega Legowo clarified that the company adds an additive to gasoline to enhance its octane rating, a practice he said is standard in the industry. He insisted that Pertamax is not a blended product, emphasizing that Pertamina lacks a dedicated gasoline blending facility and only applies additive and coloring substances. However, he did not disclose the specific additive used in Pertamax production.

The allegations have drawn the attention of President Prabowo Subianto, who has vowed to "clean up" Pertamina and ensure that laws are upheld.