The digitalization project at Pertamina gas stations, intended to be a symbol of transparency and efficiency, has become a focus of Indonesia’s Corruption Eradication Commission (KPK). Five witnesses have been summoned in a corruption investigation related to this digitalization process.
The question is: why can a supposedly “online” system still be exploited non-transparently? The answer is clear — digitalization without strong validation systems, comprehensive audit trails, and tight document control still leaves room for manipulation.
This case is concrete proof that merely using technology is not enough. We need trustworthy digital systems that not only simplify but also secure processes from upstream to downstream.
Facts and Timeline of the Pertamina Gas Station Digitalization Case
According to KPK, alleged corruption related to Pertamina’s gas station digitalization project took place between 2019 and 2023. The project value reached approximately IDR 3.6 trillion and involved procurement of near-real-time monitoring systems for fuel distribution and sales at more than 5,000 gas stations across Indonesia.
The digitalization project was managed by PT Telkom, not directly by Pertamina. The controversy arises because KPK suspects overpayments and a lack of transparency in the procurement process. There were direct appointments within State-Owned Enterprises (BUMNs) without open tenders, which KPK alleges violated fair competition principles.
KPK is still calculating the state losses in cooperation with official auditors. So far, five witnesses, including officials from PT Telkom responsible for managing the digitalization, have been called to provide testimonies.
Why Digitalization Doesn’t Automatically Guarantee Clean and Transparent Processes
Having a digital system does not guarantee the elimination of corruption or manipulation. The following factors explain why the digitalization project failed to deliver full transparency:
- Weak Validation Systems: Digital transactions must be rigorously validated at every stage. Without strong data authentication, there is still a risk of manipulated input or forged documents.
- Incomplete Audit Trails: Digital logs must capture the entire transaction and process history that cannot be deleted or edited without trace. Audit trails must also be accessible to independent oversight bodies.
- Loose Document Control: Digital documents need protection against unauthorized access and illegal edits. Without robust document security, actors can easily falsify supporting documents.
- Lack of Transparency in Procurement Process: All procurement stages must be conducted openly with strong oversight mechanisms to prevent abuse of authority and price markups.
Without these essential elements, digitalization can become a “cloak” that hides corrupt practices difficult to detect in manual systems.
Positive and Negative Impacts of Digitalization When Not Supported by Strong Systems
If managed well, digitalization can deliver significant benefits such as:
- Operational Efficiency: Speeding up administrative and reporting processes in fuel distribution.
- Real-Time Transparency: Quick and accurate oversight of transactions and fuel stock levels.
- Reduced Manual Fraud: Minimizing human errors or direct manipulations.
However, the Pertamina case has shown serious consequences:
- State Losses in Hundreds of Billions IDR: Problematic procurement and billing can cause huge state financial losses.
- Decreased Public Trust: The public’s confidence in government digital transformation programs weakens.
- Risk of Halting Other Digital Projects: Other government agencies may hesitate to adopt digitalization due to the scandal.
Solution: Building Trustworthy, Secure Digital Systems
Preventing similar cases requires the adoption of digital systems that prioritize security and credibility:
- Implementation of High-Standard e-KYC (electronic Know Your Customer): Strong identity verification to ensure each transaction participant is legitimate and accountable.
- Legal and Secure Digital Signatures: Strengthen the authenticity of digital documents to prevent forgery without legal traces.
- Real-Time Transparent Audit Trails: Technology to record and monitor every data use and transaction activity permanently and transparently.
- Independent Oversight by a Data Referee Institution: A dedicated authority such as Indonesia’s Wasit Data to supervise compliance with personal data protection laws (UU PDP) and anti-corruption principles.
- Use of Blockchain Technology (optional): Blockchain-based transaction records enable immutable and transparent data accessible to all stakeholders.
Beeza’s Role in Addressing Digital Security Challenges
Beeza offers a leading digital trust solution providing:
- Automatic Identity Verification (e-KYC): Ensures that every transaction actor is genuine, using face match and liveness detection technology that complies with legal standards.
- Legal Digital Signatures: Enhances digital document security and supports compliance with Indonesia’s Personal Data Protection Law.
- Real-Time Data Security Monitoring: Allows institutions to supervise digitalization processes with audit trails that cannot be altered.
With Beeza, businesses and government institutions can confidently secure their digitalization processes, ensuring transparency, efficiency, and protection against manipulation and corruption.
Don’t let digitalization remain just a buzzword without real impact. Protect your business or institution’s digital transformation with Beeza’s trusted digital trust solutions. Enjoy easy automatic identity verification, legal digital signatures, and real-time data security monitoring compliant with the latest regulations.Visit beeza.id today for a free demo and comprehensive data security consultation. Ensure your digitalization drives true transparency and accountability.