Two Suspects Detained in Coal Procurement Case, Police Explain
The Indonesian National Police’s Corruption Eradication Corps (Kortas Tipidkor) has officially detained two suspects in a case of alleged corruption related to coal procurement financing for PT PLN Batubara during the 2019-2020 period. The detention follows the completion of case files concerning the misuse of invoice financing facilities from state-owned PT Perusahaan Pengelola Aset (Persero), or PT PPA, and PT Bintang Abadi Sempurna (BAS).
Head of Operations for Kortas Tipidkor Polri, Senior Commissioner Ahmad Yusuf Afandi, identified the suspects as IT, an Investment Manager at PT PPA, and FSN, the Head of the Operational Division at PT BAS. The investigation revealed that while the initial financing facility was valued at Rp 50 billion, the total funds ultimately disbursed reached Rp 67.31 billion.
Investigators uncovered a series of fundamental irregularities. The mandatory due diligence and risk analysis processes were not properly conducted, and a recommendation to directly verify matters with PT PLN Batubara was ignored, violating PT PPA’s internal standard operating procedures. Furthermore, supporting documents and invoices were not verified for authenticity but were nonetheless declared compliant, serving as the basis for fund disbursement.
The police also found that oversight of the cash collateral mechanism was neglected, allowing disbursements to proceed even when guarantee requirements were not met. In the final disbursement stage, bank statements were allegedly manipulated to falsely show sufficient collateral balances, and these suspected forged documents were then used to authorise further fund releases.
According to an investigative report from the Audit Board of the Republic of Indonesia (BPK), the actions resulted in state financial losses amounting to Rp 38.9 billion. As part of asset recovery efforts, investigators have seized land and buildings belonging to the suspects located in Medan, Bekasi, Bogor, Samarinda, and Sidoarjo, with an estimated total value of Rp 14.4 billion.
A third suspect, identified as FH, the Director of PT BAS, has also been named but is currently serving a prison sentence at Salemba Correctional Facility for a separate case. The police have committed to further developing the investigation to uncover the potential involvement of other parties.