Indonesian Political, Business & Finance News

Coal Corruption Caused Blackouts, Police Estimate State Losses at Rp 5 Trillion

| Source: DETIK Translated from Indonesian | Legal
Coal Corruption Caused Blackouts, Police Estimate State Losses at Rp 5 Trillion
Image: DETIK

The Indonesian National Police’s Corruption Eradication Corps (Kortas Tipikor Polri) is investigating a case of alleged corruption in the fulfilment of coal supplies, which contributed to blackouts in several regions of Indonesia. The case is estimated to have caused state losses of up to Rp 5 trillion.

Brigadier General Robertus Yohanes De Deo, Director of Investigation at Kortas Tipikor Polri, stated that the alleged corrupt practices, combined with the economic losses from the resulting blackouts, indicate a total state and economic loss of approximately Rp 5 trillion. He noted that this figure is not a final calculation, and the police are coordinating with the Audit Board of Indonesia (BPK) to conduct an official investigative audit.

Two companies are suspected of engaging in manipulation and irregularities related to coal supply fulfilment, with the alleged actions taking place from 2018 to 2026. The modus operandi uncovered during the inquiry includes the suspected manipulation of documents concerning the quality of coal shipped or supplied, manipulation of the quantity of coal supplied to power plants (PLTU), and alleged irregularities that resulted in contract payments or prices not matching the actual supply conditions.

Robertus explained that these actions are believed to have contributed to the disruption of coal supplies, leading to blackouts or power outages in several Indonesian regions, including parts of Sumatra, Kalimantan, Central Java, East Java, and the Greater Jakarta area (Jabodetabek). The case was elevated to the investigation stage on 4 July 2026. The investigation is ongoing, and no parties have yet been named as suspects. The police stated the investigation will be conducted thoroughly to identify all responsible parties and to optimise asset recovery efforts to restore state finances and the national economy.

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