Customs and Excise Responds to Alleged Coal Corruption Case

The Directorate General of Customs and Excise has spoken out regarding the alleged corruption in the fulfilment of coal supplies for steam power plants (PLTU), which is currently being handled by the Indonesian National Police. Head of the Customs and Excise Public Relations and Counselling Sub-directorate, Budi Prasetiyo, stated that his party respects the law enforcement process. Budi conveyed that the scope of Customs and Excise supervision focuses on customs activities, namely export and import activities. “In the event that the police investigation finds indications of violations involving customs aspects, Customs and Excise is committed to being cooperative and providing the necessary information support to investigators in accordance with its authority and the provisions of laws and regulations,” he said in a short message to Media Indonesia on Wednesday (8/7). As previously reported, the alleged corruption in fulfilling coal supplies for the PLTU is suspected to have triggered a blackout in Sumatra. Former Deputy Chairperson of the Corruption Eradication Commission (KPK), Saut Situmorang, assessed that electricity disruptions due to energy supply issues not only cause economic losses to the state but also reduce Indonesia’s competitiveness in the eyes of investors. According to Saut, the handling of the case must be accelerated because it occurs amidst a situation of economic uncertainty. “The perpetrators must be severely punished. Unstable electricity supply reduces competitiveness and adds to investor doubts,” he said in Jakarta on Tuesday (7/7). Head of the Police’s Corruption Eradication Corps (Kortastipidkor), Inspector General Totok Suharyanto, admitted that he is investigating allegations of corruption and money laundering related to the procurement of coal supply needs at several PLTUs for the 2018-2026 period. “Investigators found indications of irregularities in the procurement and fulfilment of coal supplies at PLTUs by several companies involved, such as PT OBP and PT BRA,” said Totok. He stated that the case had advanced to the investigation stage on Saturday (4/7). Meanwhile, the Director of Crime at Kortastipidkor Police, Brigadier General Robertus Yohanes De Deo, mentioned three modus operandi in the case. First, the alleged manipulation of documents regarding the quality of coal sent or supplied. Second, the alleged manipulation of the quantity of coal supplied to the PLTU. Lastly, the alleged irregularities that resulted in contract payments or prices not matching the actual supply conditions. Robertus stated that these modus operandi are suspected to have contributed to the disruption of coal supplies, which impacted blackouts in several regions of Indonesia, such as Sumatra, parts of Kalimantan, Central Java, East Java, and parts of Jabodetabek.