20-7-2023 (JAKARTA) The Attorney General’s Office (AGO) is set to issue a second subpoena for Coordinating Economic Minister Airlangga Hartarto, requesting his presence for questioning as a witness in an ongoing corruption investigation. The case has been linked to a domestic cooking oil shortage that occurred last year.
Airlangga had skipped the initial summons on Tuesday, failing to provide a reason, and subsequently asked investigators to reschedule the questioning, as stated by AGO spokesperson Ketut Sumedana.
“We hope all citizens respect the law,” Ketut asserted, adding that the investigators would send the second subpoena to Airlangga later this week.
Earlier this year, five individuals, including a high-ranking government official, were sentenced to prison for their involvement in conspiring to obtain permits for exporting crude palm oil (CPO) and its derivatives illegally between January 2021 and March 2022. The case was brought to light following an investigation conducted by the AGO.
Currently, investigators are looking to hold three palm oil private companies accountable for misconduct in acquiring export permits during a period when such shipments were restricted.
According to Ketut, the investigators intend to gather information from Airlangga regarding the export permit procedures and his policies related to CPO exports during the time of the corruption case.
In response to the cooking oil shortage at the end of 2021, the government implemented stricter controls on CPO and its derivatives exports. One such policy introduced was the domestic market obligation (DMO) policy, requiring CPO exporters to allocate at least 20 percent of their production for domestic consumption.
During the peak of the cooking oil scarcity, the AGO arrested Indrasari Wisnu Wardhana, the then Trade Ministry’s international trade director general, along with three executives from private companies on allegations of colluding to secure CPO export permits despite not meeting the DMO requirement. The individuals included Master Parulian Tumanggor, president commissioner of PT Wilmar Nabati Indonesia, Stanley MA, senior manager of corporate affairs at Permata Hijau Group, and Pierre Togar, general manager of PT Musim Mas.
The AGO also apprehended prominent economist Lin Che Wei on accusations of aiding the three executives in obtaining export permits illegally.
All five individuals received prison sentences from a lower court in January, and the Supreme Court later increased their sentences to between five and eight years, highlighting the Rp 6.4 trillion (US$426.5 million) in state losses caused by their actions.
Last month, the AGO designated three palm oil corporate groups, namely Wilmar Group (parent company of PT Wilmar Nabati Indonesia), Musim Mas Group, and Permata Hijau Group, as suspects in the case. The investigators found indications that the three executives acted on behalf of these companies. Musim Mas Group responded by expressing respect for the legal proceedings and promised full cooperation with the authorities. Wilmar Group, on the other hand, stated that no official charges had been filed against them and sought clarification on the matter, while Permata Hijau Group did not immediately respond to requests for comments.
In a recent development, the AGO confiscated assets of the companies in Medan, North Sumatra, which included 14,687 hectares of land, 56 ships, a helicopter, a business jet, and approximately Rp 9 billion worth of cash in rupiah and foreign currencies.
Notably, investigators had also interrogated the president director of CPO producer PT Sari Agrotama Persada, known only as TM, last week. The company is a part of the Wilmar Group. Additionally, two officials from the Trade Ministry were questioned on Monday.
