KPK flags corruption risks in planned US energy trade deal

The Corruption Eradication Commission (KPK) has warned that a planned energy trade arrangement between Indonesia and the United States carries significant corruption and legal risks, citing weak legal foundations and unclear reciprocal tariff mechanisms.

KPK Chairman Setyo Budiyanto said on Wednesday that the current plan, which may involve purchases of liquefied natural gas (LNG) and crude oil from US companies, is based only on a joint statement and lacks binding operational regulations.

“Without strong legal instruments and clear reciprocal tariff arrangements, corruption risks and legal uncertainty in the energy sector pose a real threat to state finances,” Setyo said during a coordination meeting at KPK headquarters in Jakarta, according to Antara.

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The anti-graft body also highlighted risks stemming from limited supplier eligibility, the absence of measurable performance indicators, and proposals to form a special task force that could weaken accountability and oversight.

KPK urged the government to establish a stronger legal framework, ensure transparent pricing mechanisms, and properly document decision-making processes to safeguard public funds as Indonesia continues negotiations on a bilateral trade and tariff agreement with the United States.

Editing by Alexander Ginting