PALMOILMAGAZINE, BANDA ACEH — The Aceh Tamiang District Attorney’s Office has named two officials from the Tujoh Tuah Bumoe Marketing Cooperative as suspects in a corruption case involving the 2022 People’s Palm Oil Replanting Program (PSR). The scheme is estimated to have caused state losses of IDR3.49 billion.
According to Head of Intelligence at the Aceh Tamiang Prosecutor’s Office, Fahmi Jalil, the two suspects—identified by the initials S and BS—held key positions as the cooperative’s chairman and treasurer, respectively.
“Both individuals were officially named suspects after investigators found sufficient preliminary evidence of corruption in the PSR implementation. The state suffered financial losses amounting to IDR3.49 billion,” said Fahmi, as reported by Palmoilmagazine.com via Antara, Thursday (10/7/2025).
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The case centers on the fabrication of beneficiary data. Investigators found that S and BS allegedly created fictitious land grant documents in the names of 35 farmers, who in fact never signed such documents or received any of the government aid.
“These farmers were completely unaware of their supposed involvement in the program. Their names and identities were used without consent,” Fahmi added.
The PSR program is a government initiative aimed at helping smallholder farmers replant aging, unproductive palm trees with higher-yielding varieties. Funds are typically channeled through farmer cooperatives to promote efficiency and modernization in the sector.
However, weak oversight and lax data verification have left the program vulnerable to abuse by irresponsible parties.
“This case serves as a stark reminder that government aid programs require stringent oversight. The Prosecutor’s Office is committed to thoroughly investigating any misuse of public funds—especially those that harm small farmers,” Fahmi stressed.
The investigation is ongoing, with authorities tracking the flow of funds and probing possible involvement of other individuals. More suspects could be named as the case develops.
Both S and BS have undergone intensive questioning and are now in detention to support further investigation. They face charges under Indonesia’s Anti-Corruption Law, with a maximum penalty of 20 years in prison.
To recover the state’s losses, the prosecution also plans to pursue asset seizures if any traceable proceeds of the crime are identified. (P2)
