Cheating at the Black Gold: Patterns of Corruption in the Coal Trade Value Chain


The coal trading in Indonesia is not a simple matter. The coal trading is prone to acts of fraud either by the private sector or the government. These fraudulent acts include illegal mining and illegal shipment. The incident is prompted by the difficulty of implementing the applicable rules, the lack of supervision, and notably, the desire to make more profit.

The trade violation and incompliance of the coal trading started from licensing issues, such as the illegal mining practices. Those practices such as mining outside the concession area, mining in forest areas, mining without permit, or with expired permit. From the violation of this licensing value chain, the illegal trading can be seen practically as follows:

1.Lump coal

2.Coal in sacks

3.Half Stealing/Spanyol‘ Coal

4.Transportation violations

5.Manipulation of quantity and quality



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