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View all search resultsPolice probe coal miners over alleged graft tied to blackouts
The National Police’s Criminal Investigation Department (Bareskrim) revealed that investigators had uncovered alleged irregularities in coal procurement involving two companies identified only by their initials, UBP and BRA.
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A coal barge sails the western Java Sea on Oct. 31, 2023, as it heads to a coal terminal near the Suralaya coal-fired power plant in Cilegon, Banten. (AFP/Ronald Siagian)
T
he National Police have launched an investigation into alleged corruption involving local coal miners that may have led to rolling blackouts in several regions across Indonesia, causing an estimated Rp 5 trillion (US$277.5 million) in economic losses.
In a press conference on Monday, the National Police’s Criminal Investigation Department (Bareskrim) and the Corruption Eradication Corps (Kortas Tipidkor) escalated the case status from a preliminary inquiry to a formal criminal investigation, targeting alleged corruption and money laundering in coal procurement for coal-fired power plants from 2018 to 2026.
“We will fully support the investigation now that the case has been upgraded to a formal investigation. We will also provide our full support in conducting inspections, particularly related to the technical aspects of mining,” said Bareskrim head Comr. Gen. Syahardiantono, as quoted in a statement published on Tuesday.
Kortas Tipidkor Insp. Gen. Totok Suharyanto revealed that investigators suspected irregularities in coal procurement involving two companies identified only by their initials, UBP and BRA.
Kortas Tipidkor enforcement director Brig. Gen. Roberthus Yohanes De Deo Tresna Eka Trimana said the two firms might have manipulated the quantity and quality of coal supplies, as well as engaged in other misconduct that resulted in contract payments that did not match actual supply conditions.
Authorities suspect these irregularities led to disruptions in the coal supply to the national power grid and triggered blackouts in several regions, including Sumatra, Kalimantan, Java and the Greater Jakarta area.
The blackouts are estimated to have caused around Rp 5 trillion in economic losses, though the figure is still preliminary, with authorities planning to coordinate further with the Supreme Audit Agency (BPK) to conduct an investigative audit and calculate the real losses.
