Revealed! Corruption in Coal Procurement for Power Plants, State Losses Reach IDR 5 Trillion

The Corruption Eradication Corps (Kortastipidkor) of the Indonesian National Police’s Criminal Investigation Agency (Bareskrim) has officially escalated the handling of alleged corruption and money laundering related to coal supply procurement for steam power plants (PLTU) for the 2018-2026 period to the investigation stage. The case has drawn significant attention because the indicated state and national economic losses reach approximately IDR 5 trillion. The alleged irregularities are even said to have the potential to disrupt coal supplies to several PLTUs and trigger blackouts in various regions of Indonesia. The upgrade of the case status was announced at a press conference at the Awaloedin Djamin Building in Jakarta, led by Bareskrim Chief Commissioner General Syahardiantono alongside Kortastipidkor officials. Kortastipidkor Chief Inspector General Totok Suharyanto stated that the case status was raised after investigators found sufficient preliminary evidence from the inquiry, document collection, requests for information, and analysis of evidence. The investigation revealed suspected irregularities in the procurement and fulfilment of coal supplies involving several companies, namely PT UBP and PT BRA. However, the exact amount of state losses is still pending an official investigative audit from the Audit Board of Indonesia (BPK). Director of Criminal Acts at Kortastipidkor, Brigadier General Roberthus Yohanes De Deo Tresna Eka Trimana, explained that the inquiry uncovered several alleged methods used in the practice, including manipulation of coal quality documents, manipulation of supply quantity, and suspected irregularities causing contract payments to be inconsistent with the actual supply conditions received. He noted that these irregularities not only potentially harm state finances but also disrupt national energy security. Investigators suspect the coal supply disruptions could trigger blackouts in several regions, from Sumatra, parts of Kalimantan, Central Java, East Java, to parts of the Greater Jakarta area. During the investigation, the police will intensify examinations of witnesses and experts, seize documents and electronic data, and trace the flow of funds and assets suspected to be linked to the criminal acts. Investigators are also open to the possibility of involvement by other parties, both individuals and corporations. To date, investigators have taken statements from 16 parties. In addition to using the Corruption Eradication Law, investigators are also applying articles in the Criminal Code and the Money Laundering Law. Bareskrim Chief Commissioner General Syahardiantono affirmed full support for the investigation process, including through collaboration with the Directorate of Specific Crimes. The police emphasised they will handle the case professionally, transparently, and accountably by cooperating with the Audit Board of Indonesia, the Financial Transaction Reports and Analysis Centre, and other relevant agencies to uncover all responsible parties and recover state losses.