Sweet Sins: The Sugar Import Scandal
Jakarta, CNN Indonesia — In a move that could only be described as the sugary cherry on top of a bureaucratic cake, the Attorney General’s Office (AGO) has decided to unveil the “sins” committed by former Minister of Trade Thomas Lembong, who now finds himself in a bit of a sticky situation—named as a suspect in a scandal involving sugar imports.
According to the Director of Investigations at the Deputy Attorney General for Special Crimes, Abdul Qohar, it appears that Mr. Lembong has been accused of abusing his authority while deciding on sugar import policies during the oh-so-sweet years of 2015-2016. Who knew that making trade decisions could be so akin to playing with candy? If you get it wrong, someone might just get a little sour!
“The Minister of Trade, namely TTL,” (because who doesn’t love a good acronym?) “gave permission to import 105 thousand tons of raw crystal sugar,” stated Abdul Qohar during a press conference that was probably more tense than a room full of children waiting for a piñata to break. Yet, in a delightful twist, instead of state-owned enterprises reaping the sugary rewards, private companies were allowed to snack on the profits. Oh, the sweet taste of corruption!
Now, if we rewind to the fine print of the Decree of the Minister of Trade and Minister of Industry Number 257 of 2014, we find that only state-owned enterprises should have been privy to this sugar-coated good fortune. It seems Mr. Lembong missed that memo while sipping on a sugary drink, possibly made from the very imports in question!
Imagine this: a meeting in December 2015, hosted by the Coordinating Ministry for Economic Affairs, where officials discussed that Indonesia would face a shortfall of white crystal sugar to the tune of 200 thousand tons in 2016. Meanwhile, back at the ranch (or should we say, in the candy factory), the Director of Business Development at PT Perusahaan Dagang Indonesia (PPI), a certain CS, was rallying the troops—eight private companies in the sugar sector—to create a scrumptious plot twist: importing that sweet commodity without any proper oversight!
What followed adds a layer of chocolate ganache to this already decadent dessert of shady dealings. After the private firms imported and processed the raw sugar, they diverted the white crystal sugar into the market through their own affiliates—with a price tag that made wallets scream. At IDR 26,000 per kilogram, this price was a whopping 100% markup over the government’s Highest Retail Price of IDR 13,000. Sweetheart deals indeed!
But wait! It gets juicier — it’s suspected that PT PPI was pocketing fees of IDR 105 per kilogram on top of this sugar rush. All told, the shenanigans have allegedly cost the state around IDR 400 billion. That’s a heaping pile of financial mischief that even Willy Wonka wouldn’t condone!
As if the plot couldn’t thicken any further, Mr. Lembong and his accomplice CS have been charged under Article 2 paragraph 1 or Article 3 of the Corruption Eradication Law. Both gentlemen have now been escorted to the Salemba State Detention Center to contemplate their “sweet” decisions—though “detention” isn’t quite the holiday getaway many had hoped for when entering public service!
So, dear readers, as we observe this candy-coated scandal, let’s reflect on the moral: When it comes to public service, remember—what’s sweet to your taste can quickly turn sour in the eyes of the law!
Jakarta, CNN Indonesia —
attorney General’s Office (AGO) has unveiled a series of serious allegations against former Minister of Trade Thomas Lembong, culminating in his designation as a suspect in a major sugar imports scandal.
Abdul Qohar, the Director of Investigations at the Deputy Attorney General for Special Crimes, indicated that Thomas Trikasih Lembong exploited his position while administering the sugar import regulations for the years 2015-2016.
“The Minister of Trade, namely TTL, granted consent for the importation of a staggering 105 thousand tons of raw crystal sugar, which was subsequently converted into white crystal sugar,” stated Abdul Qohar during a press conference held at his office in Jakarta on Tuesday, October 29.
According to the decree established by the Minister of Trade and the Minister of Industry, Number 257 of 2014, only State-Owned Enterprises (BUMN) have the authority to engage in the importation of white crystal sugar.
In a pivotal breach of protocol, however, Thomas Lembong allegedly approved a private company’s import operation.
“Moreover, the importation of crystal sugar occurred without proper coordination meetings or consultations with relevant agencies, and lacked any recommendations from the Ministry of Industry to ascertain the nation’s actual sugar requirements,” Abdul Qohar explained.
On December 28, 2015, a significant coordination meeting convened, attended by officials under the Coordinating Ministry for Economic Affairs, during which it was noted that Indonesia was projected to face a shortfall of 200 thousand tons of white crystal sugar in 2016.
Between November and December 2015, Abdul Qohar further detailed, a suspect identified as CS, who served as the Director of Business Development for PT Perusahaan Dagang Indonesia (PPI), instructed a senior staff manager named P to engage in discussions with eight private companies operating within the sugar industry.
“In order to ensure a stable supply and to stabilize market prices, white sugar should only be imported by state-owned companies,” he emphasized during the briefing.
He revealed that the industrial permits held by the eight private companies allowed them to convert raw crystal sugar into white crystal sugar, which was primarily intended for food, beverage, and pharmaceutical industries.
Upon importation and processing, PT PPI acquired the white crystal sugar, although the reality was that the sugar was being sold to the market by the private companies through their affiliated distributors, at an exorbitant rate of IDR 26 thousand per kilogram—substantially higher than the prevailing Highest Retail Price (HET) of IDR 13 thousand per kilogram, and with no corresponding market operations conducted,” Abdul Qohar elaborated.
Current suspicions suggest PT PPI: may have profited through illicit fees from the eight companies involved in the sugar importation, totaling IDR 105 per kilogram.
This controversial case has raised significant concerns, with preliminary assessments indicating potential state financial damages amounting to a staggering IDR 400 billion.
Both Tom Lembong and suspect CS are facing serious charges under Article 2 paragraph 1 or Article 3 of the Corruption Eradication Law (UU Tipikor) in conjunction with Article 55 paragraph 1 1 of the Criminal Code.
As the investigation unfolds, both individuals have been placed under detention for an initial period of 20 days at the Salemba State Detention Center (Rutan).
(ryn/rds)
