Photo Captions: PIC1. Suralaya coal-fired power plant, two-hour drive from Jakarta, is strongly suspected of being the main source of severe air pollution in the capital city from May to September 2023. (photo: touristcompanies.org)
By IGG Maha Adi – Bertha Challenge Fellow and Chairman at Green Press Indonesia
Despite Presidential Regulation No. 112 of 2022 which will retire all coal-fired power plants in Indonesia, the use of this dirty energy is actually increasing. We found the transition to renewable energy is being hampered by coal producers who do not want to lose their source of profit in the state electricity company.
Corruption in the supply of coal for electricity in Indonesia is deeply entangled with the political elite and the wealthiest individuals in our society. This corruption fuels disinformation that exacerbates the climate crisis and contributes to the catastrophic pollution affecting Indonesians.
For the past six months, Green Press Indonesia has been investigating corruption in the energy sector, particularly the supply of coal for power plants. We discovered a pattern of corruption perpetuated through disinformation, spanning from the field to courtrooms, governmental offices, and the media.
The Ghost Concession
The rain had finally stopped that morning, after several days of pouring over Kohong Village. Darwis, our source, entered the Kohong Kelakon coal mining area, known as the “ghost concession,” at 5:45am. This mining area operates around the clock every day, but it remains unclear who manages it, just like a ghost.
This July marks 10 years since Darwis started working at the site. He belongs to the Katingan Dayak tribe, which resides 12 hours away from Kohong. Since he arrived here, he witnessed the village’s transformation from a remote settlement of a few dozen Dayak families, accessible only by river, into a bustling area. The village is now surrounded by mining operations, forests, and oil palm plantations, with a fairly good road connecting it to town. Small restaurants, inns, and workshops have emerged to cater to immigrants and workers. However, garbage is piling up, and layers of oil often float in the rivers, something that has never been seen before. “The people here don’t really care about environment, they are too busy working to survive,”said Darwis. Most of the people in Kohong work at the mine, after the timber and palm oil bonanza declined.
Darwis drove slowly as the gravel road was still slippery, covered in a thin layer of rainwater. The car shook slightly when he accelerated, driving straight past the permanent camp where most of the miners stay and the office center, which they called “The White House” due to its white color. The building stood grandly amidst the Kalimantan forest, resembling the Presidential Complex in Washington, DC. (See video). His car continued past the mess hall where employees were taking a lunch break.
With 800 workers, the mine operates in two 12-hour shifts. That day, it was Darwis’ turn to work the morning shift until six in the evening. “It’s tiring and actually boring to do this for years, but I really need the money,” he said.
The Kohong Kelakon block was once a forested area spanning 21,630 hectares, located in Kohong Village, Barito Tuhup Raya District in Murung Raya Regency, Central Kalimantan. It has a coal resource potential of 305 million tons and reserves of 155.6 million tons. The government granted the management rights of this block to PT Asmin Koalindo Tuhup (AKT) through the third generation Coal Mining Concession Work Agreement (PKP2B) contract on May 31, 1999.
Our story of disinformation begins here. According to the Cambridge Dictionary, disinformation is false information spread to deceive people, often through misleading information, as is the case with this coal block. In 2017, AKT committed serious violations related to a debt guarantee case with a foreign bank, leading to the government terminating their mining contract. Article 30 of the contract prohibits AKT from using their coal production as collateral for loans from banks for other companies, even if they are their parent company. However, AKT violated this article by pledging production from their block for the debt of their parent company PT Borneo Lumbung Energi dan Metal (BLEM) to HSBC Bank in Singapore.
Dissatisfied with the termination, Samin Tan, the owner of AKT, sued the decision of the Ministry of Energy and Mineral Resources in the Supreme Court but lost. On July 8, 2022, the Energy Ministry confirmed that the termination was effective, mandating that all AKT activities cease and the block be returned to government control until the next operator is decided through a tender or direct appointment. At that time, Bambang Gatot Ariyono, the Director-General of Minerals and Coal at the Energy Ministry, stated that the coal block would be offered as a priority to state-owned or regional-owned enterprises under the government’s new contract scheme called the Special Mining Business License Area (WIUPK).
Our investigation also found evidence that the Central Kalimantan regional company PT Andalan Usaha Jaya Semesta (PT Andalan) had managed the Kohong Kelakon block during the 2022-2023. But when we visited their office address on Jalan RTA Milono Km.4.5, Palangkaraya City, there were only rows of shophouses, most of which were empty and tightly closed. There was not a single name of the company along the two kilometers we slowly walked along the left and right of the road. Our efforts to trace several addresses that are thought to be the complexes of various regional companies in Palangkaraya were also fruitless. When he found out that we were asking for the truth about the coal mine managed by a regional company, the Head of the Central Kalimantan Energy Office Syarifuddin asked to speak to his secretary who did not respond to our request until the deadline had passed.
In early 2023, the name PT Andalan was suddenly no longer listed as the company managing this block. On the contrary, PT AKT, which had been terminated by the government, reappeared. Apparently, the mine workers continue to use PT AKT ID cards since the beginning without ever changing them. However, we discovered false information—another form of disinformation—when we could no longer find the name Asmin Koalindo Tuhup listed in Minerba One Data Indonesia (MODI), on modi.esdm.go.id, the official website of that catalogs all companies holding active coal and other mining contracts across Indonesia. That is why we call the mining activities in Kohong Kelakon a ghost concession.
In 2021, the Corruption Eradication Commission (KPK) arrested Samin Tan on charges of bribing several members of the House of Representatives (DPR) with around Rp4.8 billion (US$292,000). Their goal was to pressure Minister of Energy and Mineral Resources Ignatius Jonan to revoke AKT’s contract termination. The House members were eventually imprisoned, but Samin Tan was acquitted by the Supreme Court because it was deemed unproven that he had bribed anyone. The judges reached this conclusion based solely on the evidence that he did not respond to one single WhatsApp message from a House member thanking him for sending money. In front of the media, the Chairman of the KPK stated that they would make a final legal effort in the Supreme Court to ensure Samin Tan’s imprisonment. However, that has not happened, and ironically, the same KPK Chairman was eventually arrested for corruption.
Apart from the debt guarantee and bribery issues, another case has surfaced regarding the purchase of oil fuel from PT Pertamina, a state-owned company that controls the majority of the oil and gas market in Indonesia. AKT was accused of not paying for Pertamina’s oil from 2009 to 2013, causing a loss to the state amounting to Rp452 billion (US$27.5 million). It remains unclear how these cases will unfold.
Speaking to us, Darwis revealed that most of his colleagues still carried AKT employee ID cards, but when they logged their attendance online through the Great Day HR app, their status appeared as employees of PT Bagas Bumi Persada (BBP). It turns out both companies are owned by Samin Tan. “In the field, there are no logos or documents bearing the name Bagas Bumi Persada openly,” said Darwis. BBP’s social media only mentions them as a mining contractor company and lists Central Kalimantan as one of their operational areas. They do not specify their activities there, whether they are just an online attendance service provider or more than that.
Moreover, the name BBP is also not registered in MODI. When we obtained BBP’s address and tried to match it with the data in MODI, we found a new company name, PT Bagas Bara Energi (BBE), listed at the same street address, in the same building, on the same floor, and in the same suite number as BBP. However, there is no information about any type of coal or mineral contract given by the government to BBE. “We are claimed to be employees of PT Bagas Bumi Persada, but our salaries are usually transferred from AKT’s account, and only in the last four months have they come from Bagas’ account. It’s quite confusing,” Darwis continued.
How much is the state losing from this coal block? Based on the production plan provided by the BLEM website indicating extraction of around two million tons per year, and the selling price of coking coal as of April 2024 at approximately US$109 per ton, our calculations on the unrecorded coal value is about US$218 million or Rp3.5 trillion per year.
Unfortunately, our attempts to seek clarification from both AKT and BLEM by visiting their offices on the 29th floor of an office complex on Jalan Budi Kemuliaan, Central Jakarta, yielded no results. Their offices were closed, and contact details such as email addresses, phone numbers, and other references to BLEM as the parent company were conspicuously removed from their websites. The company’s legal advisor asked us for a list of questions but did not respond after we sent one.
Another worker also confirmed that the former AKT mine was operating at full capacity, just like before the government revoked its concession. Worker rotations had returned to twice a day, and coal shipments to barges were happening 24 hours a day. “We only rest for an hour per shift, and the barges keep coming,” he said. He mentioned that the mine’s production rate had reached 5,000 tons per day, with high-calorie coking coal production valued above 5,000 kilocalories per kilogram (kcal/kg). “Our production is exported to China, where it is needed by weapon and tank factories because this coking coal produces high heat,” he revealed.
He recounted that in May 2022, on a Thursday, four police officers from the National Police Headquarters in Jakarta visited the mining area following reports of illegal operations by Samin Tan’s company. According to our source, the officers observed the entire mining operation while being escorted in the company’s vehicle. “They were aware that the mine was operating without permission but did not comment on anything during the inspection. They toured the site, took photographs, and occasionally queried the site manager,” he explained. The first report on the illegal mining operations to the National Police Headquarters was made by Wancino, Chairman of the Kaharingan Institute in Palangkaraya, Central Kalimantan. The institute is noted for actively investigating and reporting on illegal mining activities, particularly those impacting deforestation and forest degradation in Central Kalimantan.
PIC 2. Samin Tan, owner of PT AKT that operates the Kohong Kelakon coal block, was implicated in a corruption case involving DPR members but was acquitted by the Supreme Court. (Photo: Indrianto Eko Suwarso/ANTARA)
A week later, a police helicopter landed at the airstrip near the camp with the Central Kalimantan Regional Police Chief (Kapolda) on board, who wanted to ensure AKT’s compliance with government regulations. “The Kapolda was only here for about two hours before flying back,” said Darwis. Despite visits by officers from the National Police Headquarters and the Kapolda, nothing changed in the mining operation. “We were only instructed to stop working for two days, just before the Kapolda arrived and during his presence. All equipment and vehicles were neatly parked and cleaned, and all 800 employees had to stay in the wooden-walled camp or at home, as if there were no operations,” Darwis described the situation at the time. After the Central Kalimantan Regional Police Chief returned to Palangkaraya, the next day at 6am sharp, mining operations resumed as usual.
Upon returning to Jakarta, one of the four police officers called Wancino and informed him that they could not proceed further due to an order from a three-star police officer to halt the investigation. Frustrated with the police, at the end of April, Wancino wrote to the Attorney General’s Office to report the findings on AKT and requested an investigation. When asked about the status of the letter, Wancino stated that the AGO had not responded yet. “It seems their (AKT) backing this time is very strong,” he said, sounding concerned.
The acting Director-General of Minerals and Coal, Bambang Suswantoro, the highest authority overseeing the Indonesian mining sector, was intercepted for a brief interview after an event in Jakarta at the end of May. He promised to look into the AKT information. “I haven’t received the report yet. I’ll check,” he told us.
The Verdict
Three hundred kilometers south of Kohong Village, Aziz Muslim had been at the Corruption Court in Palangkaraya City since 5pm, dressed in a batik shirt adorned with a white-brown Parang Kusumo pattern. In Javanese culture, this motif symbolizes power, strength, and enthusiasm, reflecting Aziz’ heritage. That evening, he seemed to need all his strength and luck to face the court’s verdict. Aziz, Vice President of Coal Procurement at the state electricity company PT Perusahaan Listrik Negara (PLN), stood accused of corruption alongside five other defendants, involving state losses of approximately Rp4.9 billion (US$298,000). The case, transferred from the Attorney General’s Office in Jakarta to the Central Kalimantan Corruption Court, necessitated Aziz’ detention in Palangkaraya throughout the duration of the trial.
PIC 3. The trial of a corruption case at the Palangkaraya Corruption Court in May 2024 found all six defendants guilty, including two PLN executives. (Photo: IGG Maha Adi)
He conversed seriously with his lawyer while awaiting the arrival of the three judges who would decide his fate. As a company vice president, Aziz was accused by prosecutors of neglecting his duty to inspect the specifications of the coal he received and approving payments. This resulted in PLN receiving coal with a significantly lower calorific value than required, thereby causing losses to the state.
As evening fell in Palangkaraya, the courtroom was lit by eight LED lights. The courtroom visitors on that late May afternoon numbered fewer than 15, almost all of them were from the defense teams of the four defendants. The three other defendants sat not far from Aziz, while the other two were absent and chose to submit their responses in writing due to dissatisfaction with the prosecutors’ demands.
At six o’clock, the judges arrived, and the trial began. The four defendants took their seats in the middle of the room, directly in front of the judges. The judges eventually found Aziz Muslim guilty and sentenced him to one year in prison. This means he will be released in August, as he has already served 10 months in custody. While he was not proven to have caused financial losses to the state, he was found guilty of abusing his authority, resulting in PLN receiving coal that did not meet the required specifications. When approached after the verdict hearing, Aziz briefly stated that his actions were to ensure there was no power outage in Java and Bali. “It was an emergency situation where PLN urgently needed coal,” he said as he hurriedly got into the prison van.
Dekie Kasenda, a law lecturer at Tambun Bungai School of Law in Central Kalimantan, said he understood the judges’ perspective. According to him, a vice president can make mistakes in decision-making, and if it is not proven that he directly harmed the state’s finances, the judge can impose a light sentence. The Chairman of the KPK, in a written statement to journalists, declined to comment extensively on the frequent lenient sentences for corruptors, stating that it was not their main task and that judicial decisions also depend on the demands of the prosecution.
A few days prior, we spoke to Rezky Rumbogo Heryanto, one of the defendants who did not attend the verdict hearing. He denied the prosecutor’s allegations. “The accusations are very damaging to me because the coal I sold has already been used by PLN, yet I am still facing a prison sentence and a fine that is excessively high.” The prosecutor sought a 4-year prison term and a fine of Rp375 million (US$22,811) for Rezky, the highest among all defendants.
Approaching nine o’clock in the evening, the judge read another verdict. Muhammad Firmansyah, a director at one of PLN’s subsidiaries, was sentenced to one year in prison and fined Rp100 million (US$6,000). The same punishment was handed down to Boggy Linggar Yuangga, a company surveyor who issued fraudulent Certificates of Analysis (CoA) falsifying the coal’s calorific value.
David Parulian Hutauruk, accused of assisting Rezky in falsifying the calorific value of the coal supplied to PLN, received a different verdict. He was charged with bribing port surveyors and accepting kickbacks. “My client will accept the prosecutor’s demand. What else can we do when they have evidence from our client’s WhatsApp conversations and money transfers?” said Suriansyah Halim, David’s lawyer. The prosecution sought a one-year prison term and a fine of Rp125 million (US$7,603) for David.
Until the end of the trial, only two journalists attended the hearings. When asked why the verdict for the corruption case involving high-ranking PLN officials that day did not attract more reporters, both replied that they did not know. “Perhaps because it’s already (late at) night, and most journalists have gone home,” one suggested. It’s unclear who requested the media to remain silent, and the two journalists declined further questioning. According to information received by a colleague at beritalingkungan.com, journalists covering this case had been asked by PLN’s communication consultants in the South and Central Kalimantan area to spread disinformation by not reporting on this corruption trial.
He claimed the chain message was sent via WhatsApp and attempted to retrieve it from a chat group but failed. “I will forward the evidence if other journalists still have it.” Instead, he showed us a similar message related to another PLN case. We opened a social media account with a photo of a deceased man hanging from a PLN high-voltage tower in South Kalimantan late last year. The picture was accompanied by a message “Please control this news.” This suggests journalists were discouraged from reporting on it entirely due to concerns that it might reflect poorly on PLN’s facility security. “There were circumstances set so that no one would report on it,” explained another source.
How does PLN control local news and media? “Through partnerships that have significant monetary value,” explained our source. PLN’s regional communications consultants have agreements with local media to publish news favorable to PLN. Typically, the media receives information through press releases, event invitations, or field visits coordinated by PLN.
Every month, PLN pays these media outlets a certain amount of money under the guise of partnerships. The monthly payments vary, ranging from Rp750,000 (US$45) for online and print media to as much as Rp1.2 million (US$73) for television coverage. All of PLN’s media partners understand that they are expected not to publish news that portrays PLN negatively, including the recent corruption case decided in the court that night in Palangkaraya. Unfortunately, PLN officials, from senior directors to public relations staff, declined to comment on these allegations of disinformation.
Modus Operandi
What happened with AKT’s concession in Murung Raya and Aziz Muslim’s role in the coal supply are just two examples of the five common methods of corruption in coal procurement, typically involving collusion between entrepreneurs, government officials, and policymakers. Aziz Muslim is among dozens of PLN officials found guilty by the Corruption Court.
Former Chief Executive Officer (CEO) of PLN, Dahlan Iskan, mentioned that inflating the calorific value was one of the most prevalent and challenging forms of corruption to eradicate. “The value of one coal shipment can reach Rp40 billion (US$2.5 million), so it doesn’t matter if they bribe port officials whose salaries are among the lowest in PLN,” he said. The average salary of PLN employees is Rp9 million (US$457) per month, and receiving two to three times that in one day is certainly a big deal.
Dahlan claimed he had tried hard to eradicate corrupt practices involving PLN, sometimes successfully, sometimes not. “If caught, these coal owners will be very resentful, so it’s no wonder they lobby here and there to bring down PLN directors,” he revealed. Dahlan himself faced retaliation from these blacklisted entrepreneurs, being accused four times and tried for various crimes, only to be acquitted by the administrative court. However, three other former PLN CEOs were imprisoned for corruption.
Inflating the calorific value of coal is a common crime committed by companies throughout Indonesia due to its higher market price. The calorific value of coal is typically measured in net calorific value (NCV) and gross calorific value (GCV). The GCV value is usually generated from a coal combustion test in the laboratory, while the NCV value is the actual value of the energy produced by the coal to heat the furnace.
Low-calorific coal often contains more than 1 percent sulfur, leading to issues such as acid rain, boiler slagging, incomplete combustion, and higher emissions of pollutants. The higher the GCV, the less coal is needed to generate one unit of electricity. On average, low-calorie coal produces 5 percent more carbon dioxide (CO2) during combustion. This disparity in quality is reflected in prices: high-quality coal (6,200 kcal/kg) is priced at US$121/ton, while lower-quality coal (4,100 kcal/kg) is priced at US$36.32/ton, based on the April 2024 government coal reference price.
PIC.4 The five most commonly used modus operandi of corruption in coal supply in PLN.
(Data: IGG Maha Adi)
Coal with a calorific value above 6,000 kcal/kg is usually exported to markets such as China, Europe, and the Middle East, where it is used in the steel smelting industry. PLN power plants vary in design and efficiency, resulting in different coal type requirements. Coal with a calorific value of 2,000 to 3,500 kcal/kg is rarely used in power plants but is suitable in industries like petrochemicals. Generally, Indonesian power plants accept coal with a calorific value of 4,100 kcal/kg.
Another modus operandi used by these coal entrepreneurs is selling coal reserves that are still underground but whose volume is not yet known. This can only be carried out with the cooperation of PLN officials, as demonstrated by Kokos Lim. He and Khairil Wahyuni, CEO of PT PLN Batubara, signed a contract to purchase coal with inflated calorific values. The contract stated the coal’s origin from disputed areas and indicated that no technical studies had been conducted, the coal was not yet in production, and production fees/royalties were not paid to the coal contract holder as per regulations. Kokos also did not have any coal contracts with any users yet. Despite these violations, Kokos’ company has already received approval from PLN for payments totaling Rp477.4 billion (US$291 million).
Apart from leveraging insiders at PLN, another modus operandi involves providing gratuities to policymakers, such as bribing members of the DPR. Samin Tan from AKT used this strategy, as did Johannes Kotjo to secure coal procurement tenders for the Riau-1 Power Plant. Johannes Kotjo represented China Huadian Engineering Company Ltd in Indonesia, which was investing in the Riau-1 Power Plant project. He bribed DPR members like Idrus Marham and Eni Saragih with Rp4.8 billion (US$286,000). Both were sentenced to 3 and 6 years of imprisonment, respectively, by the Jakarta Corruption Court in 2019.
Eni’s name also emerged in the AKT case where Samin allegedly bribed her with Rp5 billion (US$304,000). Through her, Samin attempted to reinstate AKT’s contract that had been terminated by the government in 2017, but his efforts failed. When asked about the ease of bribing DPR members in coal cases, Eddy Suparno, Deputy Chairman of DPR’s Commission VII, which oversees the energy and environment sectors, said, “That’s a legal matter. Let law enforcement handle it. I don’t want to comment on my colleagues’ cases. I’m focused solely on the energy aspect.”
The losses to the state from this “black energy” corruption continue to mount. According to the Indonesia Corruption Watch (ICW), state losses from the coal sector during 2006-2016 amounted to Rp133.6 trillion (US$8.1 billion). These losses largely resulted from discrepancies in reported production volumes between the Central Statistics Agency (BPS) and the Ministry of Energy and Mineral Resources, as well as differences in export data between what Indonesia reported as the country of origin and what the buyer countries recorded. ICW’s investigation revealed a 49.1 million-ton discrepancy between government agencies and a 299.8 million-ton difference in exports during this period.
Boyamin Saiman, Coordinator of the Indonesian Anti-Corruption Society (MAKI), illustrated another modus operandi. He stated that in the case of PT Multi Harapan Utama (MHU) in East Kalimantan, the state could lose Rp9.3 trillion (US$576.6 million), which he reported to the Coordinating Minister for Political, Legal, and Security Affairs last year. The method involved the coal company collaborating with an information technology (IT) staff member of the Directorate-General of Minerals and Coal at the Energy Ministry to falsify coal production volumes for export, resulting in an unreported discrepancy of 8.2 million metric tons. “If all coal corruption can be exposed, the state’s losses could reach hundreds of trillions (of rupiah) every year,” Boyamin explained. To this day, MAKI’s report has not been followed up by the government.
Oligarchic Business
Didit Wicaksono, a Green Energy Campaigner from Greenpeace Indonesia, asserts that the stagnant energy transition roadmap in Indonesia is closely tied to the influence and interests of the coal oligarchy, which now wields significant power in shaping energy policies.
State-Owned Enterprises Minister Erick Thohir, who plays a key role in determining the coal power plant termination roadmap, has familial ties to the coal industry through PT Adaro Energy Indonesia, which is controlled by his brother Garibaldi “Boy” Thohir and would be significantly influenced by the roadmap. Furthermore, PLN, facing significant impacts from any accelerated energy transition, plans to retire its coal power plants gradually by 2035, reducing their number from 234 to fewer than five. This rapid shift will affect investments, revenue, employment, and have broader socio-economic implications. Conversely, only 4 percent of Indonesia’s vast renewable energy reserves totaling 500 gigawatts have been utilized, despite US$21 billion in international commitments awaiting disbursement.
“They’re delaying the transition to renewable energy because they face the risk of having to shut down their businesses,” Didit remarked. This statement is echoed in the report titled Who’s Behind the Power Plants, published in 2020 by Indonesia Corruption Watch, and the Oligarchic Network in Mining & Energy report by the Mining Advocacy Network (Jatam), released in early 2024 before of the General Elections. Both reports uncover deep connections between politicians and coal entrepreneurs who support each other’s interests, evidenced by the fact that many coal entrepreneurs are also DPR members, highlighting the intertwining of economic and political interests.
President-elect Prabowo Subianto, alongside his family, controls several coal companies under the Nusantara Energy Group in East Kalimantan. Prabowo also serves as the General Chairman of the Gerindra Party. Prabowo’s main supporters, such as Erick Thohir and his family, control PT Adaro Energy Indonesia, one of Indonesia’s largest coal companies. Additionally, Minister of Tourism and Creative Economy Sandiaga Uno, a central board member of the Islamic-based United Development Party (PPP), holds shares in the company. Among senior politicians, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Panjaitan, a Golkar Party leader, owns PT Toba Sejahtra, which holds significant coal concessions in East Kalimantan.
PIC 5. President-elect Prabowo Subianto and his family (top) and active ministers Luhut B.Pandjaitan, Sandiaga Uno, and Erick Thohir (bottom) are among high-ranking political figures in Indonesia who own coal companies. (Graphic and Data by BersihkanIndonesia, 2022)
When questioned about the rampant and seemingly uncontained corruption in the coal sector, Eddy Poerwanto, a former Chair of the Illegal Mining Task Force at the DPR, claimed ignorance and requested specific examples. Beritalingkungan then provided three major cases involving businessmen Kokos Lim, Johannes Kotjo, and Samin Tan, which also implicated several DPR members. Eddy responded evasively, stating those cases were about power plants, not coal. This response was surprising since, in recent years, there have been no significant trials related to corruption in the construction or management of power plants, but rather in coal procurement.
Didit from Greenpeace Indonesia attributes the persistent corruption in the coal sector to the enormous profits and intentionally weak governance. “Entrepreneurs want to maximize their profits, and instead of fulfilling various obligations to the state, they pay officials and politicians to keep their businesses running smoothly. It’s a vicious cycle,” he explained.
Disinformation
At a glamorous dinner in Bali during the G20 summit in November 2023, US President Joe Biden announced a $20 billion commitment from developed countries to support Indonesia’s energy transition. The commitment also supports Presidential Regulation No. 112 of 2022, which mandates a gradual early retirement of all coal-fired power plants in Indonesia and comes into effect on September 13, 2022.
What a shame, that’s far from the truth. According to preliminary analysis, Indonesia’s coal emissions hit a record high in 2022, making the country one of the largest global emitters of carbon from fossil fuels. Data from the Ministry of Energy and Mineral Resources showed that coal consumption surged by 33 percent, from 559 million barrels of oil equivalent (BOE) in 2021 to 746 million BOE in 2022.
One consequence of the relationship between politicians and businessmen is the absence of an officially announced roadmap for ending coal power plants. The roadmap should be proposed by PLN and agreed upon by the Ministry of Finance and the Ministry of State-Owned Enterprises, before being signed by the Minister of Energy and Mineral Resources and launched to the public. “The roadmap has been discussed jointly by PLN and the two ministries, but there is a strong concern that it will significantly impact PLN’s business and the national energy supply,” said Fabby Tumiwa from the Institute for Essential Services Reform (IESR), an institute specializing in energy policy issues in Indonesia.
Disinformation also arises from the government’s plan to meet electricity demands for the nickel smelting industry using coal energy. This decision undermines the development of renewable energy and contradicts the president’s commitment to phase out coal energy. On the corporate front, for instance, PT Adaro promotes its flagship product, Green Coal, as environmentally friendly, yet there is no detailed explanation or scientific evidence has been provided to support this claim. Unfortunately, Adaro did not respond to inquiries by our deadline.
The intertwined relationships between entrepreneurs and politicians in Indonesia’s coal business have resulted in various forms of disinformation to avoid public criticism, particularly from activists. Efforts to block information from reaching the public include persuading journalists to stop negative coverage about a company, obfuscating information through convoluted regulations, restricting data, or withholding information altogether, especially regarding the impacts of coal on the global climate crisis.
Greenpeace Indonesia identified climate disinformation when the Ministry of Environment and Forestry (KLHK), through one of its directors, denied that round-the-clock operations of coal-fired power plants near Jakarta were the cause of high air pollution levels in the capital. Unfortunately, the ministry and PLN refused to release daily emission data that could show the direction in which the emissions from these plants were dispersing. Instead, they blamed Jakarta’s transportation sector as the main cause of the pollution.
“Various studies conclude that Jakarta’s air pollution stems from power plant emissions,” said Didit. One such study he referred to was an emission dispersion simulation from power plants around Jakarta conducted by the Center for Research on Energy and Clean Air (CREA), a Finland-based non-governmental organization, in 2023.
Coal entrepreneurs should delay the public release of the energy transition roadmap as long as possible, or their business will die faster. On the other hand, while the transition is still uncertain, the country’s ability to address the climate crisis is hangs in the balance.
