Modus Operandi of Rare Earth Export Corruption: Manipulating Mineral Lab Test Results
The Indonesian Attorney General’s Office (Kejagung) has uncovered a corruption scheme related to the illegal export of rare earth elements (REE) perpetrated by PT Putraprima Mineral (PMM). The Director of Investigation at the Junior Attorney General for Special Crimes, Syarief Sulaeman Nahdi, stated that the modus operandi involved manipulating laboratory test results to obtain export permits. ‘This action was intended to ensure that the rare earth content, which is on the list of strategic minerals prohibited for export, was not included in the laboratory test report,’ he said during a press conference on Wednesday (8/7).
To execute the scheme, Syarief explained that suspect Iwan Setiawan, a representative of PT PMM, requested Gian Prabuharto, the Head of the Pangkalpinang Service Unit of PT Sucofindo, to test ilmenite samples. However, the request was for the examination to be conducted merely as a formality, so that the results could be used as the basis for issuing export documents. ‘IS unlawfully requested GP to manipulate the laboratory test results by stating that the ilmenite commodity had a grade above 45 percent so that it could be exported,’ he clarified.
Furthermore, Iwan also requested that the rare earth element (REE) content not be included in the laboratory test report, as the commodity is prohibited for export. Syarief explained that this request was approved by Gian, even though he was aware that rare earth minerals have very high economic and strategic value and are on the list of strategic minerals banned for export. ‘The testing was only carried out on the top part of the jumbo bag with the aim of ensuring that the prohibited rare earth content was not included in the laboratory test report,’ he explained.
Subsequently, Iwan also requested Junanto Kurniawan, the Head of the Type C Customs and Excise Supervision Office in Pangkalpinang, to issue export documents based on the PT Sucofindo Surveyor’s Report. ‘JK abused his authority by not submitting the analysis results regarding the presence of rare earth minerals or elements at IS’s request,’ he stated. As a result of Junanto’s actions, 390 tonnes of soil containing rare earth elements were nearly illegally exported from Indonesia. ‘The three suspects were detained last night for a period of 20 days at the Salemba Detention Centre branch of the Indonesian Attorney General’s Office,’ he concluded.