Pertamina ex-officials implicated in U.K. bribery case

Former high-ranking officials at Indonesia’s Energy and Mineral Resources Ministry and state oil and gas firm PT Pertamina are implicated in a US$6.35 million bribery case involving Innospec Ltd., U.K.-based manufacturer and distributor of fuel additives. Innospec recently pleaded guilty to bribing officials in order to secure contracts for the supply of a lead-based product, known as tetraethyl lead (TEL), a lead-based anti-knock fuel additive. Innospec sold the TEL to Pertamina between 2002 and 2006 through its agent PT Soegih Interjaya (PTSI). During this period, the sales of TEL to Indonesia was US$170.17 million. The agents received US$11.7 million in commissions. The U.K. Serious Fraud Office said part of these commissions was used to bribe Pertamina executives and other public officials. A document from the Southwark Crown Court mentioned that former director general for oil and gas Rahmat Sudibyo and former processing director at Pertamina Suroso Armo Martoyo were among those who received bribes from Innospec. The PTSI allocated the bribe under the names “Sudibyo fund” and “Suroso fund”. Both Rahmat and Suroso denied the allegation. (March 27, 2010)