Police Detain Two Suspects in Coal Procurement Case, Uncover Modus Operandi

The Corruption Eradication Corps (Kortas Tipidkor) of the Indonesian National Police has detained two suspects in a case of alleged corruption related to coal procurement for PT PLN Batubara, concerning an invoice financing facility for the 2019-2020 period. The detention follows investigators uncovering a modus operandi involving document manipulation and the neglect of verification procedures, resulting in state losses of up to Rp 38.9 billion.

Kombes Pol Ahmad Yusuf Afandi, Head of Operations for Kortas Tipidkor, explained that the detained suspects are IT, an Investment Manager at PT Perusahaan Pengelola Aset (Persero) (PT PPA), and FSN, the Head of the Operational Division at PT Bintang Abadi Sempurna (PT BAS). He stressed that the detention is part of the law enforcement process after the case file was declared complete, or P21.

Ahmad detailed that the scheme began with the provision of a financing facility worth Rp 50 billion, which in practice was disbursed up to Rp 67.31 billion through eight separate drawdowns. Investigators found that the risk analysis process was not carried out and direct verification with PT PLN Batubara was deliberately ignored by the suspects.

Investigators discovered a series of fundamental irregularities. Firstly, the due diligence and risk analysis process was not conducted properly. The recommendation to carry out direct verification with PT PLN Batubara was not implemented, even though this is a mandatory procedure according to PT PPA’s internal standard operating procedures. Secondly, the authenticity of invoices and supporting documents was not verified, yet they were declared to have met the requirements, forming the basis for fund disbursement. Thirdly, oversight of the cash collateral mechanism was ignored, so disbursements were made even though collateral requirements were not met. Fourthly, in the final disbursement stage, bank statements were allegedly manipulated to make it appear that the guarantee account balance was sufficient when it was not. This allegedly falsified document was then used as the basis for subsequent fund disbursements.

Ahmad stated that the case is not merely an administrative error, but a series of actions allegedly carried out consciously, in a structured manner, deliberately, and interconnected, resulting in state funds being disbursed without a legal basis. Based on an investigative audit report by the Supreme Audit Agency (BPK RI), the actions of the suspects caused state losses amounting to Rp 38.9 billion. As part of asset recovery efforts, authorities have seized land and building assets belonging to the suspects worth Rp 14.4 billion in several areas, including Medan, Bekasi, and Samarinda.