Policy NoteExtractive Industry

Patterns of Corruption in the Coal Trading Value Chain

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Coal trading in Indonesia is not a simple thing. The coal trade is filled with fraudulent acts by both private individuals and the government. These fraudulent acts include illegal mining and illegal shipping. This is caused by the difficulty of implementing the regulations that have been set, the lack of supervision, and especially the desire to gain greater profits.

Non-compliance and violations in the coal trade start from the licensing chain, namely illegal mining practices. These practices include mining outside concession areas, mining in forest areas, without permits, or with permits that have expired.

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