- Indonesia
Indonesia’s Coal Industry is a Cash Cow for Politicians with Implications for the Environment
Corruption Type
Bribery, Undue Influence, Conflict of Interest
Date: December 2018
Rita Widyasari, known as the “queen of coal” for the number of permits she issued during her tenure, was implicated in a coal industry bribery case. Indonesia’s anti-corruption agency, Komisi Pemberantasan Korupsi (KPK), disclosed that Widyasari had received a staggering sum of US$7.7 million over a period of time starting from 2010 in kickback and bribes for approved environmental impact assessments, leading to her conviction and sentencing to 10-years in prison the following year. During her tenure, she also gave many coal mining permits to the companies which affiliated with the member of her family.
This is an example of the blurred line between politics and the coal industry. A report by Bersihkan Indonesia Coalition titled Coalruption in 2018 highlighted concern by local civil society regarding conflict of interest since many politicians and former military officers have interests in the coal industry.
The report adds: “The corruption is entrenched. It involves not only politically exposed persons, but the political party machine and the military. Tracking the names behind many of the businesses in the coal sector reveals a network of people, linked by family, politics or military ties, all who benefit from the continued growth of the coal sector in mining and coal-fired power plants.” There are also indications that politicians received campaign contributions from the coal industry in exchange for the approval of mining permits.
Sources
- https://transparencyinternational.sharepoint.com/:w:/s/LandandCorruptioninAfrica/EZIZjgD-mE9OjE4f0g-UFa8B1AhmNHweznveWxgvBM3COg?e=XYrrgY
- https://katadata.co.id/muchamadnafi/indepth/5e9a554f9093f/gurihnya-pungutan-liar-di-bumi-etam
- https://news.mongabay.com/2017/10/queen-of-coal-named-corruption-suspect-in-indonesia/
- https://www.greenpeace.org/static/planet4-indonesia-stateless/2018/12/727d7a2d-coalruption-english-web.pdf
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