Former PGN director sentenced to six years in gas trading corruption case
Wednesday, January 14 2026 - 07:37 AM WIB
Former Commercial Director of state-controlled gas distributor PT Perusahaan Gas Negara Tbk (PGN), Danny Praditya, has been sentenced to six years in prison and fined Rp250 million (about US$15,000) for corruption related to a gas sale and purchase agreement involving PT Inti Alasindo Energi (IAE).
Presiding Judge Ni Kadek Susantiani handed down the verdict at the Central Jakarta Corruption Court on Monday night (Jan. 12), ruling that Danny was legally and convincingly proven to have committed corruption jointly with others.
“Sentencing the defendant Danny Praditya to six years of imprisonment and a fine of Rp250 million, with the provision that if the fine is not paid it will be replaced by six months of confinement,” the judge said.
The court also ordered prosecutors to lift the freeze on Danny’s bank accounts, comprising six savings accounts and two deposit accounts.
The corruption case stemmed from a gas trading cooperation between PGN and IAE during the 2017–2021 period. The scheme involved an advance payment of US$15 million made by PGN as part of a gas sale and purchase agreement that also included an acquisition option.
According to the court, the advance payment was not used to finance the agreed project, but instead to repay IAE’s outstanding debts to various parties. The cooperation was deemed unprofitable for PGN from the outset, as IAE no longer had assets that could serve as collateral and was already burdened by significant liabilities.
The panel of judges ruled that the actions caused state losses of up to US$15 million, equivalent to around Rp246 billion, and had damaged public trust in state-owned enterprises.
Read also: KPK detains former PGN CEO over gas sales case
In its ruling, the court cited aggravating factors including the large financial losses to the state and Danny’s position as a public official who should have upheld good corporate governance standards. Mitigating factors included that Danny did not personally receive or enjoy proceeds from the corruption, had no prior criminal record, supported a family, and was cooperative throughout the trial.
The case also involved IAE President Commissioner Iswan Ibrahim, who was convicted in the same trial and sentenced to six years in prison and fined Rp250 million, with a six-month subsidiary sentence. Iswan was additionally ordered to pay US$3.33 million in restitution, or face an additional three years in prison, after being found to have benefited as the beneficial owner of IAE.
The court found that the corruption enriched several parties, including Iswan, who allegedly gained US$3.58 million, and IAE President Commissioner Arso Sadewo, who allegedly received US$11.04 million. Other individuals were also cited as beneficiaries, including former PGN President Director Hendi Prio Santoso and Indonesian Chamber of Commerce (Kadin) official Yugi Prayanto, Antara reported.
The judges said the sentences were lower than prosecutors’ demands of seven years and six months for Danny and seven years for Iswan, but ruled that the penalties were sufficient to deliver deterrence, prevention, and a sense of justice to both the defendants and the public.
The case was investigated by the Corruption Eradication Commission (KPK) and brought to trial at the Central Jakarta Corruption Court.
Editing Reiner Simanjuntak