Indonesia’s Attorney General’s Office has named four new suspects in an expanding corruption investigation involving alleged irregularities in mining business permits and illegal bauxite exports connected to PT Quality Sukses Sejahtera (QSS) in West Kalimantan.
The case centers on allegations that the company exported bauxite mined outside its licensed concession area while using official mining and export documents issued under PT QSS.
Prosecutors allege the operation involved cooperation between company executives, consultants and state officials within the Energy and Mineral Resources Ministry.
Head of the Attorney General’s Office Legal Information Center Anang Supriatna said one of the newly named suspects is an official from the Directorate General of Minerals and Coal at the Energy and Mineral Resources Ministry.
The suspect, identified by the initials HSFD, served as a mining analyst at the Directorate of Mineral Business Development.
In addition to HSFD, prosecutors also named three executives linked to PT QSS and affiliated businesses.
The new suspects include PT QSS commissioner YA, licensing consultant IA, who also serves as director of PT BMU, and PT QSS director AP.
“The suspects were named after investigators confiscated documents and electronic evidence, conducted case exposure sessions with state financial loss experts, and questioned 12 witnesses,” Anang said in an official statement.
According to prosecutors, the investigation uncovered indications of systemic abuse of mining permits, export approvals and production planning documents used to facilitate illegal bauxite exports from Indonesia.
PT Quality Sukses Sejahtera is a bauxite mining company operating in West Kalimantan.
Investigators said the company was acquired by suspect SDT together with YA after obtaining an exploration mining permit based on a decree issued by the Governor of West Kalimantan in April 2016.
The permit granted PT QSS the right to conduct exploration activities in a mining concession area located in the province.
However, prosecutors allege that after the company later obtained an operational production permit and annual work and budget plan approval, mining activities were not actually conducted within the official concession area.
Instead, investigators said PT QSS allegedly purchased bauxite mined illegally from locations outside its licensed mining territory.
The illegally sourced bauxite was then allegedly exported using PT QSS operational permits, production approvals and export recommendation documents.
According to prosecutors, the company effectively used legitimate permits to disguise the origin of unlawfully mined minerals.
Investigators believe the scheme enabled PT QSS to continue exporting bauxite despite not meeting legal requirements tied to mining operations and export authorization.
Anang said suspect SDT allegedly requested assistance from IA and another individual identified as A to facilitate communication with HSFD within the Energy Ministry.
The purpose of the arrangement, prosecutors allege, was to ensure permits and export approvals continued to be issued even when required administrative conditions were not fulfilled.
Investigators suspect payments were made to influence the licensing process and accelerate document approvals.
“As a result of the sale of bauxite that did not originate from mining activities within PT QSS’s concession area and the misuse of licensing documents for illegal shipments, state financial losses were incurred,” Anang said.
The Attorney General’s Office has not yet publicly disclosed the total estimated state losses linked to the case.
Authorities announced that three suspects — AP, YA and IA — would be detained for 20 days at the Salemba Detention Center branch operated by the Attorney General’s Office.
Meanwhile, suspect SDT and mining ministry official HSFD were detained at the Salemba detention facility managed by the South Jakarta District Prosecutor’s Office.
The latest arrests expand a corruption case that has already drawn significant attention due to alleged collusion between private mining companies and public officials overseeing Indonesia’s mineral licensing sector.
Earlier in the investigation, prosecutors named PT QSS commissioner and beneficial owner Sudianto as a suspect.
Investigators accuse Sudianto of orchestrating irregularities involving mining permits and export approvals between 2017 and 2025.
Director of Investigations at the Attorney General’s Office for Special Crimes Syarief Sulaeman Nahdi previously stated that the suspect designation followed extensive evidence collection and witness examinations.
Investigators confiscated company records, electronic devices and additional documentation believed to support allegations of unlawful mining and export practices.
“Investigators carried out examinations professionally and accountably while upholding the principles of prudence and the presumption of innocence,” Syarief said during a press conference.
According to prosecutors, the case began in 2017 when Sudianto acquired PT Quality Sukses Sejahtera, which already possessed an exploration mining permit issued by the West Kalimantan provincial government.
In 2018, PT QSS subsequently obtained an operational production permit and approval for a work plan and budget covering approximately 4,084 hectares.
However, investigators allege the company should not have qualified for the permit based on regulatory requirements established under a decree issued by the West Kalimantan Investment and One-Stop Integrated Service Agency.
Despite receiving operational approval, prosecutors allege PT QSS never conducted legitimate mining activities within the licensed concession area.
Instead, the company allegedly acquired bauxite from external sources outside its legal territory and exported the material using PT QSS documents.
Authorities believe the exports continued from 2020 through 2024 using export approvals issued without proper verification procedures.
Investigators allege the company cooperated with government officials to facilitate the issuance of export permits despite noncompliance with regulations.
One of the key issues highlighted by prosecutors is the absence of a refining facility or smelter owned by PT QSS.
Under Indonesian mining regulations, companies seeking permission to export processed mineral products are generally required to possess downstream processing capabilities or meet domestic refining obligations.
Investigators allege PT QSS failed to meet those conditions but nevertheless obtained export approvals.
“So essentially PT Quality Sukses Sejahtera obtained a mining permit but did not mine in the designated area. The company mined elsewhere and exported the products using PT QSS documents in cooperation with state officials,” Syarief said.
The case reflects broader concerns surrounding governance and oversight within Indonesia’s mining sector, particularly regarding licensing practices and export controls.
Indonesia is one of the world’s largest producers of bauxite and nickel, and the government has increasingly tightened regulations in recent years to encourage domestic processing and prevent illegal exports.
Authorities have repeatedly warned that manipulation of mining permits and export documentation undermines state revenue, damages environmental oversight and distorts fair competition within the mining industry.
The Attorney General’s Office said investigators are continuing to examine financial transactions, export documentation and communication records tied to the alleged scheme.
Prosecutors have not ruled out the possibility of additional suspects as the investigation develops further.
The case also raises renewed questions regarding supervision within Indonesia’s mineral licensing system and the vulnerability of administrative procedures to corruption and political influence.
Legal proceedings against the suspects are expected to continue in the coming weeks as prosecutors prepare formal indictments and expand the investigation into alleged state losses linked to illegal bauxite exports.
