Police probe alleged coal supply graft linked to power outages
Tuesday, July 7 2026 - 08:29 AM WIB
The National Police have launched a formal investigation into alleged corruption and money laundering in coal procurement for state-owned coal-fired power plants, saying suspected irregularities may have caused state losses of around Rp5 trillion (US$278 million) and contributed to widespread electricity blackouts in several regions.
The National Police's Anti-Corruption Corps (Kortastipidkor) said on Monday the investigation covers coal supply contracts for a number of coal-fired power plants (PLTU) over the 2018–2026 period.
"The investigation has been upgraded to the formal investigation stage since Saturday," Anti-Corruption Corps chief Inspector General Totok Suharyanto told a press conference at the National Police headquarters in Jakarta.
Totok said investigators had found indications of irregularities in the procurement process and the fulfillment of coal supply contracts involving several companies, including PT OBP and PT BRA.
"Investigators found indications of irregularities in the procurement process and the fulfillment of coal supplies for power plants involving several companies," he said.
He added that police have collected documents, questioned witnesses and analyzed preliminary evidence, but have yet to name any suspects or file criminal charges.
Anti-Corruption Enforcement Director Brigadier General Robertus Yohanes De Deo said investigators had identified three suspected methods used in the scheme: manipulation of documents relating to coal quality, manipulation of the quantity of coal delivered, and contract payments that allegedly did not reflect the actual volume or quality of coal supplied.
According to Robertus, the alleged practices disrupted coal deliveries to power plants and contributed to the recent electricity blackouts in several parts of Indonesia, including Sumatra, parts of Kalimantan, Central Java, East Java and parts of Greater Jakarta.
"As a result of these alleged actions, together with the broader economic impact of the blackouts, preliminary estimates indicate potential state losses of approximately Rp5 trillion," Robertus said.
He said the estimated losses remain preliminary and are being verified through an investigative audit by the State Audit Board (BPK).
Police are investigating the case under Indonesia's anti-corruption and anti-money laundering laws, with Robertus noting that additional charges could be added as the investigation progresses.
So far, investigators have questioned 16 witnesses. The next stage of the investigation will include further witness interviews, expert testimony and the seizure of evidence.
Robertus said the Anti-Corruption Corps is coordinating with the National Police's Criminal Investigation Department (Bareskrim), the State Audit Board (BPK) and the Financial Transaction Reports and Analysis Center (PPATK).
"The investigation will be carried out comprehensively to uncover the entire case, identify all responsible parties and optimize asset recovery efforts to restore losses to state finances and the national economy," he said.
Editing by Reiner Simanjuntak