Coal Corruption Allegations Linked to Indonesian Power Outages

Indonesian police are investigating a suspected corruption case involving the procurement of coal for state-owned power plants. The alleged scheme, spanning from 2018 to 2026, is believed to have manipulated data on coal quantity and quality.

Investigators from the National Police's Directorate of Corruption Crimes suspect that this manipulation led to inflated prices, as consumers paid more for coal than its actual quality warranted. This discrepancy, where coal burned faster than expected, is thought to have contributed to power outages in various regions.

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The manipulation could be in the form of discrepancies in the calorie content of coal between the reported value and the actual quality.

However, police clarified that a specific blackout in Sumatra in late May 2026 was caused by a transmission cable failure. The broader power disruptions linked to the alleged coal corruption are considered more general. The estimated financial loss to the state is approximately 5 trillion rupiah (about $330 million), though this figure is still subject to official audit by the Financial Audit Board.

The investigation has escalated to the penyidikan (investigation) stage, with authorities examining irregularities in the procurement processes involving PT OBP and PT BRA. The findings suggest that fraudulent practices may have been ongoing since 2018.

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So when it was used for burning fuel at the power plant, it turned out to be used up quickly. Even though its lifespan should have been this long, it only lasted this long (faster).