Jakarta – The Publish What You Pay (PWYP) Indonesia Coalition warns that the series of dramatic escalations over the past week—ranging from the naming of former Junior Attorney General for Special Crimes (Jampidsus) Febrie Adriansyah and a private actor Don Ritto (DR) as suspects, the seizure of assets estimated by investigators at approximately Rp541 billion, the transfer of the case to the Attorney General’s Office (AGO), to the closed-door meeting at the Palace—must not shift the core of the issue. The alleged corruption in coal supply procurement for coal-fired power plants (PLTU) for the 2018–2026 period is the result of a systemic failure in energy supply chain governance, not merely a single-person case.
The case, which was elevated to the investigation stage by the Corruption Eradication Corps (Kortastipidkor) of the Indonesian National Police (Polri) since July 4, 2026, involves two supplier companies alleged to have manipulated quality, quantity, and contract price documents for coal supplies to several PLTUs. Initial indications of state financial and/or economic losses have reached approximately Rp5 trillion, a figure currently awaiting the results of an investigative audit by the Audit Board of Indonesia (BPK).
“This is no ordinary procurement corruption, nor is it simply a case involving a single official. Coal remains the backbone of our national electricity. When its supply chain is systematically manipulated for years, the burden is borne by all Indonesian citizens—through frequently unreliable electricity, disruptions to public economic activities, and state financial losses that could ultimately impact the electricity subsidy burden or trigger future tariff adjustments,” said the National Coordinator of PWYP Indonesia, Aryanto Nugroho.
Systemic Allegations: Eight Years Evading Layered Supervision
The naming of a former high-ranking law enforcement official as a suspect, accompanied by the seizure of gold bars and foreign currency worth hundreds of billions of rupiah, reinforces the fundamental question raised by PWYP Indonesia from the outset: How could the alleged supply manipulation take place since 2018 without being detected by PLN’s internal oversight, independent surveyors, the Ministry of Energy and Mineral Resources (MEMR), or state auditors?
The failure of multi-layered supervision over an eight-year period demands a clear answer: Is this due to negligence, or deliberate omission? PWYP Indonesia respects the presumption of innocence of the suspects, and precisely for that reason, a transparent and accountable legal process is in the best interest of all parties, including the suspects themselves.
The Case Must Not Shrink and Must Not Move Into a Dark Room
PWYP Indonesia notes the transfer of the case, including the coal corruption matter, to the Attorney General’s Office on July 11, 2026. The public has a right to an official explanation regarding the legal basis for this transfer. Given the suspect’s background as a former top official in the special crimes division within the exact same institution, guarantees of impartiality and process transparency become paramount to maintaining public trust. Furthermore, while easing inter-agency tensions through closed-door meetings falls under the President’s authority, the legal substance of the case must never be part of any negotiation.
“The public’s question today is simple: Does this case belong to the legal process, or has it become a bargaining tool between institutions? The only way to answer this is to open the process as widely as possible and involve independent oversight,” Aryanto stated.
Consequently, PWYP Indonesia urges the Corruption Eradication Commission (KPK) to immediately exercise its coordination and supervision authorities as mandated by Law No. 19 of 2019 over all related cases. If the process later shows signs of being unjustifiably protracted, attempts to shield the actual perpetrators, or obstructions resulting from political interference, the KPK must not hesitate to utilize its authority to take over the case as stipulated under Article 10A of the same law.
The Missing Link
This case exposes fundamental weaknesses in Indonesia’s energy governance: the complete lack of transparency along the coal supply chain. Openness should begin from the determination of production quotas, reference prices, to the Domestic Market Obligation (DMO) policy that ensures domestic supply security. Meanwhile, compliance monitoring mechanisms and supply traceability remain incredibly weak.
Throughout the first half of 2026, several PLTUs were reportedly vulnerable, operating with coal stocks dropping below 10 days of operation. When the supply chain from the mine mouth to the PLTU furnace lacks transparency, companies can easily manipulate specifications, volumes, prices, and contract fulfillments without adequate public scrutiny. It is at this exact intersection that elite networks and illicit financial flows in the coal sector find their way.
“Traceability is key. Every single ton of coal claimed to enter a PLTU must be traceable back to its origin, its price, and its payment. Without that openness, the coal sector will continue to be a recurring breeding ground for corruption,” Aryanto added.
As an implementing country of the Extractive Industries Transparency Initiative (EITI), Indonesia already possesses a baseline foundation for extractive transparency. However, the scope of EITI reporting currently stops at upstream production and fiscal data, failing to reach the midstream supply chain, including coal procurement for domestic electricity generation—the exact point where this corruption occurred.
PWYP Indonesia demands the expansion of the EITI reporting scope to include mandatory compliance. This push aligns closely with the direction of the 2023 EITI Standard, which strengthens the transparency and accountability of energy SOEs, advances the energy transition agenda, and closes loopholes for illicit financial flows.
The opacity of this supply chain has left both the public and law enforcement agencies struggling to identify the root causes of the electricity crisis. The alleged corruption was initially cited as the cause of blackouts across various islands, only to be corrected a day later with explanations that the mass blackout in Sumatra on May 22, 2026, was triggered by transmission disruptions on the 275 kV SUTET line due to severe weather. Yet, similar references resurfaced during search announcements. When supply data remains closed, all parties are left fumbling in the dark—both literally and figuratively. The public is entitled to clear, prompt, and accurate official information from the very beginning.
Demands of PWYP Indonesia
In light of these developments, the PWYP Indonesia Coalition demands:
- The KPK immediately execute its coordination and supervision powers (Law No. 19 of 2019) over all related cases—including its readiness to take over the case under Article 10A should investigators face protracted delays, attempts to protect the true perpetrators, or external interference—accompanied by an official public explanation regarding the legal basis and mechanism of the case transfer to the AGO.
- The investigation must not stop at the current suspects. The two supplier companies, their beneficial owners, and the parties facilitating these practices on the procurement side must be thoroughly investigated, with the proceeds of crime pursued down to the Ultimate Beneficial Owners (UBO), regardless of their identity or political stature.
- The immediate publication of the BPK’s investigative audit results, encompassing total state losses and transaction flows across the supply chain.
- Full contract transparency and data disclosure regarding PLN’s coal suppliers (open contracting).
- The Ministry of Law (through the Directorate General of General Legal Administration/Ditjen AHU) and the Ministry of Energy and Mineral Resources to open, verify, and cross-check the beneficial ownership (BO) data of both supplier companies as mandated by Presidential Regulation No. 13 of 2018. This will serve as a public test of whether the government’s BO data system actually functions or exists merely as a paper-based administrative box-ticking exercise.
- The establishment of an independent quality and quantity verification system for coal that is fully open to public audit.
- Effective protection mechanisms for whistleblowers operating across the energy supply chain.
PWYP Indonesia notes the formation of the Working Committee (Panja) by Commission III of the House of Representatives (DPR RI) and demands that all its proceedings be fully open to the public, ensuring that parliament does not become a new “dark room” that obscures the legal substance of this case. Within this framework, PWYP Indonesia stands ready to provide inputs based on the coalition’s published research on coal governance.
PWYP Indonesia will continue to monitor this case until systemic reforms are fully realized—because what must be ended is not just the careers of individual perpetrators, but the dark, opaque manner in which the state manages its energy supply chain.
Contact:
Aryanto Nugroho, National Coordinator of PWYP Indonesia
Email: aryanto@pwypindonesia.org
About PWYP Indonesia:
Publish What You Pay (PWYP) Indonesia is a civil society coalition consisting of 33 national and regional civil society organizations advocating for a democratic, inclusive, and transparent governance framework in the energy and natural resources sector to advance socio-ecological justice.