JAKARTA – Civil society urges the investigation of the alleged corruption case of PLTU Riau-1 to be broader and does not stop at the political party elite, but also sees the involvement of political party entities and corporations that are part of the crime.

The Mining Advocacy Network (JATAM) assesses that the PLTU Riau-1 case indicates how the electricity project, which is a strategic state project, is still used as a “cash cow” for certain interests.

“This is reinforced by indications of the flow of funds by Johannes to the Golkar Munaslub in 2017, in which Eni himself served as Treasurer of the Munaslub. Therefore, the Corruption Eradication Commission needs to investigate the involvement of other elites and political parties, ”said Melky Nahar from JATAM in Jakarta (6/9).

According to Melky, the direct appointment mechanism increases the gap in transactional practices between BUMN, investors, political elites as well as business elites, as indicated in the alleged corruption case of PLTU Riau-1. Blackgold Natural Insurance Limited, the bribing company of Eni and Idrus, through its subsidiary, PT Samantaka Batubara, is a member of the consortium implementing the PLTU Riau-1 project. Meanwhile, other consortium members include China Huadian Engineering Co (CHEC), as well as PT Pembangkit Jawa Bali (PJB), and PT PLN Batubara which are subsidiaries of PLN.

The case of the Riau-1 PLTU project set a bad precedent in the development of the 35,000 MW project, there is a great chance that a similar model will also occur in other PLTU projects. Therefore, it is urgent to review the 35,000 MW project. “Without strong supervision, this strategic project can be turned into a political fortune. What’s more, entering the political year in 2019 with the presidential and legislative elections, “said Melky.

Maryati Abdullah, the National Coordinator for Publish What You Pay (PWYP) Indonesia said that the corruption gap in the procurement in the electricity sector is inseparable from the direct appointment of the implementer of the 35,000-megawatt power plant construction project for the 2015-2019 period as regulated in the Minister of Energy and Mineral Resources Regulation No.3 2015 year.

“This causes transparency and accountability problems, and creates opportunities for corruption and abuse as indicated in the PLTU Riau 1 bribery case,” said Maryati.

Maryati explained that apart from that, the closed procurement system also closed the possibility of forming a market structure that prioritized competitive prices, which should have been the main basis for selecting IPPs. If what you want is cheap electricity, then an auction system, or a limited auction, should be the choice.

Based on the 2018-2027 RUPTL, Sumatra is expected to build more than six thousand MW of mine-mouth PLTU in the next 10 years. At the beginning of the plan, the additional capacity was intended to supply the Sumatra and Java-Bali regions. However, due to the excess supply of electricity in Java-Bali, the expansion needs plan is questionable. However, there has been no significant change in plans, in fact, as shown by the bribery case of PLTU MT Riau 1, the construction of the mine mouth PLTU is increasingly being accelerated.

To note, the KPK has until now named three suspects in the alleged bribery case for the Riau-1 Steam Power Plant (PLTU) project, namely Eni Maulani Saragih as a member of the Golar Faction DPR who also serves as Deputy Chairman of Commission VII DPR-RI, Johanes Budisutrino Kotjo as the owner of Blackgold Natural Insurance Limited, and Idrus Marham, former Secretary-General of the Golkar Party.

Eni and Idrus are suspected of being involved in smoothing out the signing of the cooperation related to the construction of the Riau-1 PLTU. Eni allegedly accepted a bribe of Rp. 500 million from Johannes as part of the commitment fee (2.5%) for the PLTU-Riau-2 project which reached Rp. 4.8 billion. This is the fourth time Eni has received money from Johannes, after previously receiving a total of IDR 2 billion in December 2017, IDR 2 billion in March 2018, and IDR 300 million in June 2018. Meanwhile, Idrus was promised a commitment fee of IDR 1.5 billion.


Contact Person:

Maryati Abdullah – PWYP Indonesia: 082125238247

Melky Nahar – JATAM: 081319789181