Indonesia’s National Police Corruption Eradication Corps (Kortastipidkor) is investigating an alleged corruption scheme involving the procurement and supply of coal to several coal-fired power plants (PLTUs) between 2018 and 2026. Investigators suspect the irregularities contributed to widespread power outages across parts of Indonesia and may have caused potential state losses of approximately Rp5 trillion.
The case has officially entered the investigation stage and centers on alleged irregularities in the coal procurement process involving several companies. Police believe the misconduct disrupted coal supplies to power plants, leading to blackouts in Sumatra, parts of Kalimantan, Central Java, East Java, and sections of the Greater Jakarta metropolitan area (Jabodetabek).
Brigadier General Robertus Yohanes De Deo, Director of Criminal Investigation at Kortastipidkor, said the alleged corruption may have resulted in significant financial losses to both the state and the national economy.
“As a result of these actions, combined with the economic losses caused by the blackouts, there are indications of state financial losses and/or losses to the national economy amounting to approximately Rp5 trillion,” Robertus said.
However, he emphasized that the exact amount of the losses is still subject to an official investigative audit by Indonesia’s Supreme Audit Agency (BPK).
Alleged Corruption in Coal Procurement for Power Plants
Kortastipidkor investigators uncovered indications of irregularities in the procurement and fulfillment of coal supplies for several coal-fired power plants during the 2018–2026 period.
The case allegedly involves several companies, including PT OBP and PT BRA, which are suspected of playing roles in supplying coal to power plants.
Head of Kortastipidkor, Inspector General Totok Suharyanto, stated that investigators found evidence suggesting that procurement procedures did not comply with applicable regulations.
“Investigators have identified alleged irregularities in the procurement and supply of coal to coal-fired power plants involving several companies, including PT OBP and PT BRA,” Totok said.
The case was officially upgraded from a preliminary inquiry to a full criminal investigation on Saturday, July 4, 2026.
Alleged Irregularities Disrupted Coal Supplies to Power Plants
During the investigation, police concluded that the alleged corruption may have affected not only state finances but also the distribution of coal, the primary fuel used by coal-fired power plants.
Investigators suspect that discrepancies in both the quality and quantity of coal delivered disrupted the operations of several power plants, ultimately affecting electricity supplies to multiple regions.
As a result, blackouts were reported in Sumatra, parts of Kalimantan, Central Java, East Java, and sections of the Greater Jakarta area.
Authorities are continuing to examine the connection between the alleged procurement irregularities and the operational disruptions experienced by power plants during the period under investigation.
Alleged Methods Used in the Coal Supply Corruption Scheme
Based on preliminary findings, Kortastipidkor investigators have identified at least three suspected methods used in the scheme:
- Manipulation of coal quality documentation, where the specifications listed in official documents allegedly did not match the actual quality of the coal supplied.
- Manipulation of coal supply quantities, with the amount of coal delivered allegedly differing from the volumes stated in contracts and shipping documents.
- Irregularities in contract payments, involving suspected payments or contract values that did not accurately reflect the actual coal supplied.
According to investigators, these alleged practices may have disrupted coal availability for power plants, negatively affecting Indonesia’s national electricity services.
Investigation Involves BPK and PPATK
Investigators have questioned 16 witnesses as part of the corruption investigation.
The next stages of the investigation include interviewing additional witnesses, obtaining expert testimony, seizing evidence, and tracing financial transactions suspected of being linked to money laundering (TPPU).
The investigation is being conducted by Kortastipidkor in collaboration with the National Police Criminal Investigation Agency (Bareskrim), Indonesia’s Supreme Audit Agency (BPK), and the Financial Transaction Reports and Analysis Center (PPATK).
Investigators are focusing not only on identifying those responsible but also on maximizing asset recovery efforts to recover state losses if criminal liability is established through the ongoing legal process.***
