PPATK, KPK Target Corruption in Mining Sector

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30 June 2014 17:46 WIB

Open-pit mining. TEMPO/Parliza Hendrawan

TEMPO.CO, Jakarta - The Financial Transaction Reports and Analysis Centre (PPATK) and the Corruption Eradication Commission (KPK) have formed a task force to focus in eradicating corruptors in the mining sector.

"In the next three months, there will be law enforcement priorities in the field of mining," KPK deputy chief Agus Santoso told Tempo on Friday, June 27, 2014.

PPATK's research revealed that head of regional government in various regions of Indonesia, usually earn money for regional re-elections from the mining sector. They abuse the licensing process to open up new mining areas. These regional heads give forest clearing permits that lead to illegal logging. Furthermore, the land will be used as a plantation area before finally being turned into mining areas.

The research was supported by KPK's findings. KPK deputy chief Busyro Muqqodas previously said that the state may suffer US$1.2 billion of losses from the mineral and coal sectors.

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