Son of ‘Gasoline Godfather’ Convicted in Indonesia Graft Case

Article content(Bloomberg) — 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.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentMuhamad 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.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentUnder Indonesian law, defendants have seven days to file any appeals. An attorney for Riza didn’t immediately respond to request for comment.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentHis 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.”Article contentIndonesia’s ‘Gasoline Godfather’ Is Targeted in Vast Graft ProbeArticle contentThe 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.Article contentThe AGO estimated associated state losses in the case — covering direct financial losses, broader economic impact and illicit gains — at 285 trillion rupiah ($17 billion).Article contentChalid 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.Article contentChalid’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.Article contentTrending Australia ships LNG 25,000 kilometres to Eastern Canada amid Asian slump Oil & Gas Canada's housing market suffers largest price decline among major economies, says BIS Real Estate Ryan Reynolds’ Wrexham faces financial hit from collapsed broker News Feds to invest millions in startup accelerator to boost Canadian defence and dual-use companies Innovation Mortgage myths you need to know before renewal Mortgages Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Australia ships LNG 25,000 kilometres to Eastern Canada amid Asian slump Oil & Gas Canada's housing market suffers largest price decline among major economies, says BIS Real Estate Ryan Reynolds’ Wrexham faces financial hit from collapsed broker News Feds to invest millions in startup accelerator to boost Canadian defence and dual-use companies Innovation Mortgage myths you need to know before renewal Mortgages