PWYP warns that the alleged corruption in coal procurement for coal-fired power plants (PLTUs) between 2018 and 2026 reflects a systemic failure in energy supply chain governance.
BETAHITA.ID — The designation of former Deputy Attorney General for Special Crimes (Jampidsus) Febrie Adriansyah and a private-sector figure identified as Don Ritto (DR) as suspects does not bring the coal supply scandal to a close. Publish What You Pay (PWYP) Indonesia warns that the alleged corruption in coal procurement for coal-fired power plants from 2018 to 2026 represents a systemic failure in the governance of Indonesia’s energy supply chain, not merely the misconduct of a single individual.
The dramatic sequence of developments — from the naming of Febrie and Don Ritto as suspects, the seizure of assets estimated by investigators at around Rp541 billion, the transfer of the case to the Attorney General’s Office, and a closed-door meeting at the Presidential Palace — must not distract from the core issue: the alleged corruption in coal procurement for PLTUs during 2018–2026.
The National Police’s Anti-Corruption Corps (Kortas Tipidkor) formally elevated the case to the investigation stage on 4 July 2026. Investigators identified two supplier companies suspected of manipulating documents related to coal quality, quantity, and contract pricing for supplies delivered to several coal-fired power plants. Preliminary estimates suggest losses to state finances and the national economy could reach approximately Rp5 trillion, although the figure is still subject to an investigative audit by the Supreme Audit Agency (BPK).
PWYP Indonesia National Coordinator Aryanto Nugroho stressed that this is not an ordinary procurement corruption case, nor is it simply a scandal involving one official. Coal remains the backbone of Indonesia’s electricity system.
“When a supply chain is manipulated systematically for years, the burden is borne by all Indonesians — through unreliable electricity services, disruptions to economic activities, and losses to state finances that could ultimately increase the burden of electricity subsidies or lead to tariff adjustments in the future,” he said in a press release issued Tuesday (14 July 2026).
PWYP Indonesia has long questioned why alleged supply manipulation dating back to 2018 went undetected by PLN’s internal oversight, independent surveyors, the Ministry of Energy and Mineral Resources, and state auditors. Aryanto said the failure of multiple layers of supervision over eight years demands an answer: was it negligence, or deliberate tolerance? For that reason, the legal process must be conducted transparently and accountably — in the interest of all parties, including the suspects themselves.
The case exposes a fundamental weakness in Indonesia’s energy governance: the absence of transparency throughout the coal supply chain. Openness should begin with the allocation of production quotas, benchmark pricing, and Domestic Market Obligation (DMO) policies that determine the certainty of domestic supply.
Meanwhile, mechanisms for monitoring compliance and tracing coal supplies remain extremely weak. During the first half of 2026, several PLTUs were reported to have coal stock levels below ten days of operation. When the supply chain from the mine mouth to the power plant furnace is opaque, companies can manipulate specifications, volumes, prices, and contract fulfillment without adequate public oversight. It is precisely in this opacity that elite networks and illicit financial flows in the coal business find room to operate.
“Traceability is the key. Every ton of coal claimed to have entered a power plant must be traceable — its origin, its price, and its payment. Without that transparency, the coal sector will continue to be fertile ground for recurring corruption,” Aryanto said.
Indonesia already has a foundation for extractive transparency as an implementing country of the Extractive Industries Transparency Initiative (EITI). However, EITI reporting in Indonesia still focuses on upstream production and fiscal payment data and has not extended to the midstream supply chain, including coal procurement for domestic electricity generation. At this very point, this case allegedly occurred.
PWYP Indonesia is calling for an expansion of mandatory EITI reporting requirements, in line with the direction of the 2023 EITI Standard, which strengthens transparency and accountability of state-owned energy enterprises, supports the energy transition agenda, and seeks to close loopholes for illicit financial flows.
The opacity of the supply chain has even made it difficult for the public and law enforcement agencies themselves to identify the root causes of electricity crises. Alleged corruption was initially cited as a cause of blackouts in several islands; a day later, authorities corrected the statement, saying that the mass blackout in Sumatra on 22 May 2026 was suspected to have been caused by a disturbance in the 275 kV transmission network due to severe weather.
Similar claims resurfaced during the announcement of search operations. When supply data is not transparent, all parties struggle to distinguish between the effects of supply manipulation and other technical disruptions. The public has the right to clear, timely, and accurate official information from the outset.
The Case Must Not Shrink, Nor Be Moved Into a Dark Room
The public deserves an official explanation of the legal basis for transferring the coal case to the Attorney General’s Office on 11 July 2026. Given that one of the suspects previously held the highest position in special criminal prosecution within the same institution, guarantees of impartiality and transparency are even more crucial to maintaining public trust.
Efforts to ease tensions between institutions through closed-door meetings involving the President must not interfere with the substance of the case.
“The public’s question today is simple: does this case belong to the legal process, or has it become a bargaining chip between institutions? The only way to answer that is to open the process as widely as possible and ensure oversight by parties with no vested interest,” Aryanto said.
PWYP Indonesia is also urging the Corruption Eradication Commission (KPK) to immediately exercise its coordination and supervision authority as mandated under Law No. 19/2019 over all related cases. The KPK should not hesitate to use its authority under Article 10A of the same law to take over the case if there are indications that the investigation is being unnecessarily prolonged, that the real perpetrators are being protected, or that the process is being obstructed by interference from political power.
Source: Betahita.id