31-10-2024 (JAKARTA) Indonesian prosecutors have unveiled details of an eight-year investigation into alleged corruption involving former Trade Minister Thomas Trikasih Lembong, culminating in his designation as a suspect in a case involving approximately 400 billion rupiah ($25.4 million) in state losses.
The Attorney General’s Office (AGO) has meticulously documented how Lembong, commonly known as Tom Lembong, allegedly circumvented established protocols to approve controversial sugar imports during his tenure as Trade Minister from 2015 to 2016.
Director of Criminal Investigation Abdul Qohar revealed that the case centres on decisions made in stark contrast to a May 2015 inter-ministerial assessment, which had determined Indonesia had sufficient sugar supplies. Despite this conclusion, Lembong allegedly authorised a private company to import 105,000 tonnes of raw crystal sugar.
“The import approvals were issued without the requisite ministerial consultations or proper needs assessment,” Qohar stated. “This violated existing regulations stipulating that only state-owned enterprises could import white crystal sugar.”
The investigation has uncovered a complex web of transactions involving the state-owned trading company Perusahaan Perdagangan Indonesia (PPI) and eight private sugar firms. These companies allegedly processed raw sugar without proper licensing and subsequently sold it above government-regulated prices.
Prosecutors claim the scheme allowed participating companies to sell sugar at 16,000 rupiah per kilogram, exceeding the government’s price ceiling of 13,000 rupiah. The state trading company reportedly received commission payments of 105 rupiah per kilogram for facilitating these arrangements.
The Harvard-educated Lembong, who later served as Investment Coordinating Board chairman until 2019, has emerged as a vocal government critic since leaving office. However, prosecutors emphasised that the investigation, which began last year, is purely based on evidence of alleged wrongdoing.
