Indonesian Police probe alleged coal supply corruption linked to power outages
Thekabarnews.com—Indonesia’s National Police have stepped up an investigation into alleged graft and money laundering in the procurement of coal for several coal-fired power plants (PLTUs). They say...
Thekabarnews.com—Indonesia’s National Police have stepped up an investigation into alleged graft and money laundering in the procurement of coal for several coal-fired power plants (PLTUs). They say preliminary evidence collected by investigators indicates irregularities. These irregularities may have led to electricity disruptions in several regions across the country.
The National Police’s Corruption Eradication Corps (Kortas Tipidkor) officially elevated the case from a preliminary investigation to a formal investigation on July 4, 2026, as reported by CNN Indonesia. Furthermore, the probe concerns the coal procurement activity by a number of coal-fired power plants between 2018 and 2026.
Head of Kortas Tipidkor Polri Ins. Gen. Totok Suharyanto said investigators decided to upgrade the case after collecting documentary evidence and interviewing witnesses. Furthermore, police found what they called sufficient preliminary evidence to move forward with a criminal investigation.
Police suspect several companies, including PT OBP and PT BRA, of irregularities in the procurement process. Investigators accuse the companies of falsifying documents relating to the quality and quantity of coal delivered to power plants. They have also uncovered possible discrepancies in payments on contracts.
Investigators believed the alleged irregularities may have disrupted coal supplies to several electricity generation facilities, said Director of Enforcement at Kortas Tipidkor Polri Brig. Gen. Robertus Yohanes De Deo.
“The alleged actions caused disruption in coal supplies that affected electricity generation and power outages in several areas,” Robertus said at a press conference at National Police Headquarters in Jakarta, Monday, July 6.
The suspected supply disruptions hit certain parts of Kalimantan, Sumatra, Central Java, East Java, and some parts of the Greater Jakarta region, police remarked. Investigators are also examining the broader economic fallout of the alleged misconduct.
The combination of the suspected corruption, disruptions to coal supplies, and resulting electricity blackouts may have caused state financial losses. Authorities estimate these losses and economic losses to be approximately Rp5 trillion, Robertus stated.
“The alleged misconduct, combined with the economic losses from the blackouts, points to potential state financial and economic losses of some Rp5 trillion,” Robertus said.
Investigation has expanded to alleged corruption crimes as well as the Prevention and Eradication of Money Laundering (TPPU) related to the procurement activities.
No suspects have been announced yet as the investigation continues. In addition, police said investigators will continue to collect documentary evidence. They will also review financial transactions and interview additional witnesses to determine individual criminal responsibility.
The case has attracted much public attention because of its potential impact on Indonesia’s energy security. Many electricity generation facilities in the country still rely on coal as their main fuel. So, a stable supply of fuel is necessary to maintain a stable power distribution.
The investigation follows years of power outages in several regions. These power outages have raised concerns about the country’s supply chain management. They have also raised concerns about oversight of operations in the power generation sector.
The Kortas Tipidkor Polri have taken the case to the investigation phase. This indicates that they believe there is sufficient preliminary evidence to initiate a more in-depth criminal inquiry.
The investigation will seek to determine the full scope of the alleged corruption scheme and who was responsible. Authorities said it will also examine the overall financial impact on the state and national economy.
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