Semen Gresik under investigation for allegedly buying illegal coal

A number of companies in East Java including cement producer PT Semen Gresik, power plant operators Paiton I and Paiton II, paper producers PT Suparma, PT Tjiwi Kimia, and PT Pakerin are now under the police investigation for allegedly buying coal produced by illegal miners, Antara news agency reported on Wednesday evening.

The news agency said that the investigation was made after a special team from the National Police and the East Java Police found some violations in the shipment of the coal to these companies.

?But we have yet to find the clue whether or not the purchases of the illegal coal are carried out by the companies? management or by individuals,? the secretary for the National Police?s Special Force against Illegal Coal Mining, Bambang Sudarno was quoted as saying by the news agency.

According to him, the sales of the illegal coal could cause billions of rupiah in losses to the state due to unpaid tax.

He said that the team found a number of violations in the shipment of coal during on-the-spot investigation in the Gresik, Probolinggo and Tanjung Perak ports recently. Most of the coal shipped through the port were procured from South Kalimantan where illegal coal mining activities continued to mushroom despite the tight control launched by the local government in cooperation with the police.

One of the ships was loaded with tons of coal owned by Komigoro Cooperative Unit. The coal which was intended to be shipped to Semen Gresik was believed to be taken from illegal coal mines because, according to the ministry of energy and mineral resources, the cooperative?s concession area had yet to start production.

Bambang said that tons of coal shipped to these companies were not backed by proper documents. (*)