Jakarta, Indonesia Sentinel — Indonesia’s former Minister of Trade, Thomas Trikasih Lembong (also known as Tom Lembong), has been formally charged by the Attorney General’s Office for alleged corruption related to sugar imports during his term from 2015 to 2016.
In response to the charges, Lembong stated he would entrust the legal process to God as he was escorted to a detention vehicle on Tuesday, October 29, 2024.
“I leave it to Almighty God,” he said.
The case revolves around accusations that Lembong, despite Indonesia experiencing a sugar surplus, approved the import of 105,000 tons of raw sugar. Prosecutors allege this action, conducted without proper coordination or necessary ministry recommendations, resulted in an estimated state loss of 400 billion rupiah (approximately $26 million).
Lembong is accused of bypassing standard protocols, allowing eight private companies to import and convert raw sugar (known as Gula Kristal Mentah or GKM) into refined sugar (Gula Kristal Putih or GKP), intended for direct consumption. Under normal regulations, only state-owned enterprises are permitted to import GKP for public sale, and these imports require approval from relevant economic bodies, which Lembong allegedly did not secure.
In addition to Lembong, CS, the then-Director of Business Development at PT Perusahaan Perdagangan Indonesia (PPI), has also been implicated. CS allegedly coordinated with private companies to refine and distribute the imported sugar at a price of 16,000 rupiah ($1.04) per kilogram, exceeding the government’s recommended price of 13,000 rupiah. The higher market price and lack of market interventions exacerbated the alleged financial impact.
The Attorney General’s Office provided additional details about Lembong’s decision-making process. According to Director of Special Crimes Investigation Abdul Qohar, a multi-ministerial meeting in May 2014 confirmed a sugar surplus, with recommendations against additional imports. However, Lembong proceeded with import authorizations the following year.
When market shortages emerged in 2016, Lembong’s approvals allegedly allowed private companies intended for refined sugar processing for the food industry to redirect supplies into general consumer markets.
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As a preventive measure, Lembong and CS are detained at a prosecutorial detention facility, with potential extensions based on investigative needs.
Authorities continue to examine the financial and regulatory implications of Lembong’s alleged actions. The Attorney General’s Office underscores the gravity of the charges, citing substantial state financial losses and non-compliance with trade laws. Both Lembong and CS face ongoing investigations with possible penalties, given that sufficient evidence has been obtained to justify the charges.
(Becky)
