Two Suspects Detained in Coal Procurement Case, Police Cite Rp38 Billion State Loss

The Indonesian National Police’s Corruption Eradication Corps (Kortas Tipidkor) has detained two suspects in an alleged corruption case concerning coal procurement for PT PLN Batubara for the 2019-2020 period. The case is estimated to have caused state losses amounting to Rp38.9 billion.

Kortastipidkor’s Head of Operations, Senior Commissioner Ahmad Yusuf Afandi, explained that the suspects were detained after their case files were declared complete, or P21. This step was taken to conclude the law enforcement process before the second phase of handover to the Prosecutors’ Office.

‘In this case, Kortas Tipikor Polri investigators have detained two suspects, the first with the initials IT, who served as Investment Manager of PT Perusahaan Pengelola Aset (Persero), and the second with the initials FSN, who served as Head of the Operational Division of PT Bintang Abadi Sempurna,’ he stated during a press conference at the Bareskrim Building, National Police Headquarters, Jakarta, on Monday.

Ahmad noted that, based on the results of an investigation by the Supreme Audit Agency (BPK), the suspects’ actions are estimated to have caused state financial losses reaching Rp38.9 billion. The loss value was calculated from non-compliance with internal standard operating procedures (SOP) in the process of disbursing investment financing funds.

‘Based on the BPK’s investigative audit report on state financial losses, the suspects’ actions have caused state financial losses of Rp38.9 billion,’ he added.

Authorities also found that the due diligence and risk analysis processes for this procurement project were not carried out properly. The suspects allegedly deliberately ignored the verification of supporting documents to disburse funds amounting to Rp67.31 billion, even though the guarantees provided did not meet the requirements.

‘Investigators found a series of fundamental irregularities, including: first, the due diligence and risk analysis processes were not carried out properly. The recommendation to conduct direct verification with PT PLN Batubara was not implemented,’ he explained.

Furthermore, investigators discovered indications of bank statement manipulation during the final disbursement stage to make it appear as though the guarantee balance was still sufficient. This action is considered a structured and deliberate series of acts to disburse state funds without a valid legal basis.

‘This case is not merely an administrative error, but a series of actions allegedly carried out consciously, structurally, deliberately, and interconnected, resulting in state funds being disbursed without a legal basis,’ he asserted.

As part of asset recovery efforts, authorities have seized assets in the form of land and buildings belonging to the suspects, valued at Rp14.4 billion, across various regions. Ahmad stressed that his team will continue to develop the investigation if the involvement of other parties is found in this corruption case within the energy sector.

‘We emphasise that every individual has the same standing before the law, so whoever is involved will be investigated,’ he concluded.