Son of ‘Gasoline Godfather’ Jailed in Indonesia Graft Case

The son of a reclusive oil merchant who dominated Indonesia’s fuel trade for decades received a prison sentence as part of a $17 billion corruption case centered on the country’s state-owned energy firm.

Muhamad Kerry Adrianto Riza was sentenced to 15 years in jail on Thursday by a panel of judges at the Central Jakarta District Court, according to a statement from the Attorney General’s Office. He must also pay a 1 billion rupiah fine and compensate the state for losses totaling 2.9 trillion rupiah ($173 million) or face his assets being seized.

Under Indonesian law, defendants have seven days to file any appeals. Patra M Zen, an attorney for Riza, said in a statement that the verdict was not based on the facts of the trial and that they would continue to fight for their client’s legal rights.

His sentencing is the most high-profile conviction yet in a sprawling graft probe into state-owned energy firm PT Pertamina, which has already seen six of its former executives receive custodial sentences. Riza is the son of Mohammad Riza Chalid, an oil trader who for years handled a vast amount of the Indonesia’s oil products imports, earning him the industry moniker the “Gasoline Godfather.”

Indonesia’s ‘Gasoline Godfather’ Is Targeted in Vast Graft Probe

The investigation began early last year, with authorities detaining more than a dozen executives from Pertamina, its subsidiaries and trading firms as part of a broader probe that included questioning of more than 250 witnesses, including in neighboring Singapore. By mid-year, authorities had also detained an employee of Trafigura Group, identified only by initials and title.

The AGO estimated associated state losses in the case — covering direct financial losses, broader economic impact and illicit gains — at 285 trillion rupiah ($17 billion).

Chalid was named a suspect in the Pertamina probe but never detained by the authorities after failing to respond to three summons. Officials last year said immigration records show he left Indonesia for Malaysia, and Interpol has since issued a so-called Red Notice for him.

Chalid’s son was imprisoned in connection to his shareholding of PT Orbital Terminal Merak, which prosecutors said was unnecessarily leased by Pertamina in a way that caused state losses. The AGO previously said Chalid himself was the ultimate beneficial owner of OTM.