Coal Corruption Scheme Triggered Blackouts in Sumatra and Other Regions

The Corruption Eradication Corps (Kortas Tipikor) of the Indonesian National Police has revealed a fraudulent scheme in coal procurement that led to blackouts in several regions. Investigators found alleged manipulation of the quality and quantity of coal supplied to a number of coal-fired power plants (PLTU).

Head of Operations at Kortas Tipikor, Brigadier General Ahmad Yusuf Afandi, stated that the initial investigation uncovered manipulation of both the quality and quantity of the coal, as well as payment irregularities. “There was manipulation of the quality and quantity of the coal itself, and also manipulation of payments,” he told reporters on Tuesday (7/7).

He explained that the reduction in coal calorific value meant the fuel burned faster than expected. “The calorific value was lowered, so when it was used for combustion as fuel for the PLTU, it ran out quickly. Its lifespan, which should have been a certain duration, was only sufficient for a much shorter time. This shortfall is what caused the blackout,” he said.

Investigators believe the manipulation occurred between 2018 and 2026. The case, which involves the procurement and fulfilment of coal supply needs for several PLTUs, was elevated to the investigation stage on 4 July. The alleged irregularities involve several companies, including PT OBP and PT BRA.

Brigadier General Robertus Yohanes De Deo, Director of Enforcement at Kortas Tipikor, stated that the methods used included manipulation of coal quality and quantity documents, resulting in contract payments that did not reflect actual conditions. He confirmed that these actions contributed to the disruption of coal supplies, which in turn caused power outages in several parts of Indonesia, including Sumatra, parts of Kalimantan, Central Java, East Java, and the Greater Jakarta area (Jabodetabek).