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By Fergus Jensen
JAKARTA, Aug 16 (Reuters) - A graft scandal engulfingIndonesia's energy regulator widened on Friday, with three topofficials suspended and barred from travel, as media speculatedthe revelations could further damage the ruling party ofPresident Susilo Bambang Yudhoyono.
The latest suspensions came just hours after Yudhoyono toldparliament in an annual address that his government would keepup its battle against Indonesia's endemic corruption.
The Corruption Eradication Agency (KPK) slapped a travel banon three senior officials of SKKMigas, which regulatesIndonesia's huge oil and gas industry. The regulator thensuspended them.
On Wednesday, regulator chairman Rudi Rubiandini wasarrested on bribery charges, heightening the uncertainty overenergy policy in Southeast Asia's biggest economy, where oil andgas production contribute a fifth of government revenue.
The heads of the regulator's crude and natural gascommercial divisions, Agus Sapto Raharjo and Popi Nafis, and thechief of operations support, Iwan Rahman, were placed ontemporary leave, said interim Chairman Johanes Widjonarko, whoreplaced Rubiandini.
"To support this legal process at the KPK ... SKKMigas hastaken steps to grant (leave) for these three," Widjonarko said.
The regulator, which has named temporary replacements forthe impugned officials, said the scandal would not affect oiloperations. It has existing contracts with oil majors includingBP Plc, Chevron and Exxon Mobil.
Rubiandini was arrested after he was caught taking around$400,000 and a BMW motorcycle from a top official of Singaporeenergy trader Kernel Oil. A further $190,000 was found at hishome, in the biggest cash seizure by the anti-graft agency.
After his arrest, Rubiandini told domestic media he had notengaged in corruption but may have been involved in what hedescribed as a "gratification issue".
Kernel Oil, a small company that trades in crude and oilproducts from Asia, the Middle East, the Mediterranean and WestAfrica, has denied any involvement.
Domestic media said the scandal could deal another blow tothe troubled ruling Democratic Party, which is already reelingfrom separate corruption cases involving several senior members,and which have contributed to a slump in its popularity ahead ofnext year's parliamentary and presidential elections.
Regulator SKKMigas forms part of the energy ministry, headedby Energy Minister Jero Wacik, a senior Democratic Party member.
