The Mining Advocacy Network (Jatam) asks the police to investigate Juanda Lesmana Lauw, owner of coal mining company PT Kayan Putra Utama Coal (KPUC), for alleged involvement in polluting the Malinau River in North Kalimantan province.
Jatam campaigner Alfarhat Kasman said the company has violated the law by allegedly disposing mining waste into the river without treatment, a violation which the company admitted in a writing statement before a notary in 2017.
“This action violates Article 98 of Law No. 32/2009 on environmental protection and management, which carries a prison sentence of 3-10 years with a fine of Rp 3-10 billion (US$188,612 to US$628,688) for polluters. However, if the act causes disturbance or harm to human health, the penalty is higher with 4-12 years imprisonment and a fine of Rp 4-12 billion,” Alfarhat said as quoted in a statement on Wednesday, December 11, 2024.
is a coal mining company with a permit valid from December 28, 2009 to October 17, 2025. Its mining concession covers an area of 4,989 hectares in North Kalimantan.
Since 2010, the company’s operations have repeatedly polluted the Malinau River.
In 2017, the Energy and Mineral Resources Agency of the North Kalimantan Provincial Administration issued letters of reprimand and temporary suspension to four coal mining companies in Malinau, one of which was KPUC, for polluting the river. Undeterred, KPUC continued to pollute the river until the Regent of Malinau issued a warning letter in 2021 following fatal mistakes made.
On February 7, 2021, the company’s negligence led the waste retention dam to break. As a result, coal waste broke through into the Malinau River, causing severe pollution to the river. Local tap water company (PDAM) processed the river water for clean water needs of the people.
The dam collapse caused the PDAM to stop its clean water distribution service on February 8, 2021. The incident also had a direct impact on 14 villages that relied on the Malinau River for their livelihoods.
Business, political circles
Juanda Lesmana Lauw is not a new name in business and political circles in Kalimantan. He was implicated in a corruption case involving then Kutai Kartanegara Regent Rita Widyasari, who was sentenced in 2018 to 10 years in prison for receiving gratuities amounting to Rp 469,465,440,000 or US$29.5 million.
Alfarhat said that Juanda is also known to be friends with North Kalimantan Governor Zainal Arifin Paliwang and his deputy Yansen Tipa Padan since the 2020 regional elections. Juanda knew Zainal since the latter was Deputy to North Kalimantan Police Chief, while he got acquainted with Yansen when the latter was Regent of Malinau.
Thanks to Zainal and Yansen, Juanda has a new project to build the Mentarang Dam which will be the main supply for the 1,375 MW Mentarang Induk Hydroelectric Power Plant (PLTA) controlled by PT Kayan Hydropower Nusantara (KHN). KHN was established by Juanda Lesmana under his company PT Kayan Patria Pratama (KPP), along with PT Adaro Energy Indonesia (Adaro) and Sarawak Energy Berhad (Sarawak Energy).
According to Jatam, the construction of the Mentarang Induk hydropower plant, which is envisioned as one of the electricity providers for the Indonesian Green Industrial Zone/the Kalimantan Industrial Park Indonesia (KIHI/KIPI) project in North Kalimantan, will sacrifice the living space of thousands of people residing in 11 villages in three sub-districts.
“Juanda Lesmana also has close ties with big names, such as businessman Hashim Djojohadikusumo, through party and business channels. For the record, KIHI/KIPI will be powered by two hydropower plants, namely the Mentarang Induk and Kayan Cascade hydropower plants operated by Kayan Hydro Energy (KHE),” Alfarhat said.
KHE is a company owned by Tjandra Limanjaya that initially partnered with Sumitomo Corporation. However, Sumitomo withdrew from the partnership in May 2024. Hashim, who is also the younger brother of President Prabowo Subianto, later announced that he was involved in the construction of the 9,000 megawatt (MW) hydropower plant replacing Sumitomo.
