PGN Case Verdict: Danny Praditya Sentenced to 6 Years in Prison: Alarm for State-Owned Enterprises

JAKARTA - Former Commercial Director of PT Perusahaan Gas Negara (Persero) Tbk (PGN) for the period 2016-2019, Danny Praditya, was sentenced to 6 years in prison by the Jakarta Central Corruption Court (Tipikor) Court of Judges in the alleged corruption case of the sale and purchase of gas between PGN and PT Inti Alasindo Energy (IAE).

After the reading of the verdict, Monday (12/1/2026), Danny stated that he still respected the court's decision. However, he assessed that the panel of judges ignored a number of important facts revealed during the trial, especially regarding the regulatory aspects and the character of business decisions in the state-owned enterprise environment.

"I respect the decision of the panel of judges, but it is very unfortunate that many facts of the trial, especially those related to regulations and business decisions of SOEs, were not considered in full," Danny told reporters at the Corruption Court in Central Jakarta.

Danny emphasized that the PGN-IAE gas purchase and sale transaction had been arranged based on applicable regulations, including the Minister of Energy and Mineral Resources Regulation Number 06 of 2016 and the Energy and Mineral Resources Regulation Number 04 of 2018 which regulates the exemption from tiered gas sales.

He also revealed the fact of the trial related to the letter of the Directorate General of Oil and Gas in September 2021 which annulled the previous warning.

"There is a fact of the trial that the letter from the Director General of Oil and Gas annulled the previous warning, so that the transaction can actually still be carried out," he said.

According to Danny, the absence of sanctions from regulators against PT IAE should show that the agreement still has room for sustainability, with certain adjustments. However, this consideration is not reflected in the judge's decision.

Furthermore, Danny assessed that the criminal verdict against him had the potential to become a bad precedent for decision makers in the state-owned enterprise environment. Business decisions, he said, should be assessed in the context of governance and risk management, not immediately drawn into the criminal realm.

"How is it possible that efforts to maintain trust, carry out tupoksi, and carry out innovation are considered a deviation and sentenced?" he said.

He is worried that this climate will make SOEs reluctant to make strategic decisions, especially in carrying out National Strategic Projects and downstream agendas that require courage and agility. Danny even asked President Prabowo Subianto's attention to the case that entangled him.

"It is not impossible, in the future, friends of the directors of SOEs, both those who are still serving and those who are no longer, can be entangled in criminal cases in carrying out their duties," he said.

In front of the media, Danny called the BUMN people as the guardians of state assets, not robbers of state money.

"We are soldiers who guard state assets. Today we are not only accused, but also convicted and sentenced," he said.

Danny claims that to date PGN still benefits economically from the cooperation, both in terms of gas supply, infrastructure, and profits. He said PGN's potential profit reached US$84 million per year, or around US$500 million during the six-year contract.

Meanwhile, the state losses mentioned in the case, according to him, are still in the form of contractual obligations that should be mitigated.

"Unfortunately, the contract mitigation mechanism was not optimally carried out before this case was drawn into the criminal realm," he said.