Prosecutors detain Jembayan Muarabara Group director over illegal mining case

Prosecutors from the East Kalimantan High Prosecutor’s Office have detained BT, a director of three companies under the Jembayan Muarabara Group, over alleged illegal coal mining on transmigration land in Kutai Kartanegara, local news reported.

BT, who serves as director of PT Jembayan Muarabara, PT Arzara Baraindo Energitama and PT Kemilau Rindang Abadi, was named a suspect and placed in custody for 20 days starting Feb 23, prosecutors said.

Investigators allege the companies conducted coal mining activities between 2001 and 2007 on land belonging to the manpower and transmigration ministry without the required permit. The case is being handled as a corruption investigation tied to alleged abuse of authority and unlawful actions.

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Authorities estimate the state suffered losses of around Rp500 billion or around US$30 million, with the figure still subject to verification by auditors. Prosecutors said the alleged activities caused destruction of housing, farmland and public facilities built for transmigration settlements in several villages in Tenggarong Seberang district.

BT is the third suspect detained in the case. Earlier, prosecutors arrested two former Kutai Kartanegara mining agency heads accused of issuing mining permits that enabled the operations.

PT Jembayan Muarabara operates an open pit coal mine in East Kalimantan and is part of Sakari Resources Limited, a coal producer linked to the broader Astrindo Nusantara group.

Editing by Alexander Ginting