Jakarta, Indonesia Sentinel — Indonesian police have officially launched an investigation into alleged corruption tied to the construction of the Kalimantan Barat-1 Coal-Fired Power Plant (PLTU Kalbar-1) covering the 2008-2018 fiscal years. After preliminary examinations that began in February 2024, the case has escalated, with authorities gathering evidence that suggests significant financial misconduct.
According to Kombes Pol Arief Adiharsa, Deputy Director of the Corruption Investigation Unit at Indonesia’s Criminal Investigation Department (Dittipidkor), the case was advanced to investigation status on November 5, 2024, following a thorough case review.
“Based on the legal facts gathered in our initial investigation, all attendees of the case review on November 5 agreed to elevate the status from preliminary investigation to full investigation,” Arief explained.
The corruption allegations focus on irregularities during the 2018 tender process for the PLTU Kalbar-1 project, a 2×50 MW coal-fired power plant located in Jungkat, West Kalimantan. The project, awarded to KSO BRN consortium, had a budget of USD 80 million and IDR 507 billion (approximately IDR 1.2 trillion). However, officials found that KSO BRN did not meet essential prequalification standards, including lacking the necessary experience for constructing power plants of at least 25 MW. As a result, the company subcontracted work to other firms.
Following the contract signed between the Director of PT BRN (representing the consortium) and the Director of PLN, PT BRN fully transferred project execution to third-party companies, including a Chinese energy firm. By 2016, however, construction had stalled, and the facility remained inoperative, leaving the state with significant financial losses.
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An investigative audit by Indonesia’s Supreme Audit Agency (BPK) identified potential financial losses of around USD 62.41 million and IDR 323.2 billion (totaling hundreds of billions of rupiah).
“The failure of this project, initiated by third-party contractors, has left the plant incomplete and non-functional since 2016, resulting in heavy financial losses for the country,” Arief concluded.
(Becky)
