Indonesian Coal Middleman

A story about how Shaan Puri's father got him a summer internship with a controversial Chinese coal businessman in Indonesia who made millions through corrupt dealings.

"My first job ever was a summer job my dad hooked me up with in Indonesia. This guy was known as the 'king of coal' in Indonesia. He was a Chinese guy living in Indonesia, a 5th grade dropout who barely spoke English. He had 4 women just doing his email on giant TV screens in his office because he couldn't type - he would just dictate his responses.

When I got there, I asked him how he became the king of coal. His entire business model was based on big companies like Exxon, BP, and Chevron wanting land in Indonesia. The land was owned by local provinces, and the only way to do business was through bribes to local politicians.

He acted as the middleman. He would buy coal rights for $2 million, then sell it in blocks for $20 million each to these big companies, turning $2 million into $500 million. When I asked why companies like Exxon didn't just buy directly, he explained that those companies couldn't risk bribing foreign politicians, so they would let him handle that part and then cut a commercial deal with him.

He didn't know anything about the coal itself - didn't matter if it was a good or bad asset. We just needed the paper, they paid for the paper. We didn't have to extract it, mine it, or do anything. By the way, this guy's now in jail."