PALMOILMAGAZINE, JAKARTA — Prosecutors from the Attorney General’s Office have identified 25 parties allegedly enriched through a suspected corruption scheme involving exports of crude palm oil (CPO) and its derivatives between 2022 and 2024. The products were allegedly misclassified or disguised as palm oil mill effluent (POME), resulting in reduced export duties and levies.
The 25 parties comprise 10 defendants and 15 other legal subjects, according to prosecutors. The case is also alleged to have caused state financial losses of approximately IDR 7.37 trillion.
During the reading of the indictment at the Jakarta Central District Court’s Corruption Court, prosecutor Widya Sihombing said the defendants’ actions allegedly created a shortfall between the export duties and levies paid by private companies and the amounts that should have been paid.
Also Read: 11 Defendants to Face First Trial in Alleged CPO Export Corruption Case Disguised as POME
“The defendants’ actions resulted in a difference between the export duties and levies paid by private parties and the amounts that should have been paid,” prosecutors said in the indictment.
Several Parties Allegedly Received Billions
The indictment details alleged financial benefits received by several parties under the scheme.
One defendant, Lila Harsyah Bakhtiar, was allegedly enriched by approximately IDR 25 million, while Muhammad Zulfikar was allegedly involved in benefits totaling around IDR 97.73 billion.
Prosecutors said Zulfikar’s alleged proceeds were linked to an agreed fee of IDR 225 per kilogram for exports conducted through PT Green Product International (GPI) and PT Tanimas Edible Oil (TEO) between 2022 and 2024.
Also Read: Alleged POME Fraud in Indonesia Raises Red Flags Across Global Biofuel Supply Chains
The combined export volume of the two companies was allegedly around 431.43 million kilograms, resulting in total payments of approximately IDR 97.07 billion under the arrangement.
Prosecutors said part of the money was allegedly received by Zulfikar through an individual identified as Benny, amounting to around IDR 3.31 billion, while Benny allegedly received approximately IDR 2.38 billion.
The indictment also describes substantially larger alleged benefits obtained through several companies.
Edy Susanto was allegedly enriched by around IDR 417.75 billion through PT Sinar Mutiara Nusa Agro, PT Sinar Mutiaranusa Palmindo and PT Sinar Mutiara Sawita.
Also Read: Ministry of Industry Backs Legal Probe, Suspends Official in Palm Oil and POME Export Case
Yusrin Husin was allegedly enriched by approximately IDR 445.82 billion through PT Mitra Agung Swadaya, PT Mitra Agrinusa Sentosa, PT Kencana Permata Nusantara and PT Swakarya Bangun Pratama.
Another defendant, Tony, was allegedly enriched by approximately IDR 763.55 billion through PT GPI and PT TEO.
The largest amount cited in the indictment involved Randy Tjahyadi Maliwarna, who was allegedly enriched by approximately IDR 1.02 trillion through PT Tangguh Agrojaya, PT Trimitra Agrojaya and PT Bumi Inti Rezeki.
Meanwhile, Van Ricardo was allegedly enriched by approximately IDR 563.02 billion through PT Surya Inti Primakarya.
Other alleged proceeds included approximately IDR 100.91 billion for Felix through PT Agrojaya Perdana, IDR 493.88 billion for Erwin through PT Bumi Mulia Makmur, and IDR 70.59 billion for Robin through PT Cakra Kaya Kreasi.
Beyond the defendants, prosecutors also identified 15 other legal subjects who were allegedly enriched, with combined proceeds estimated at around IDR 3.37 billion.
Also Read: Indonesia Uncovers Alleged CPO Export Manipulation via Singapore, State Revenue at Risk
CPO Allegedly Classified as POME
The case stems from alleged manipulation in the export of CPO and its derivatives between 2022 and 2024.
Fadjar Donny Tjahjadi, who served as Technical Director of Customs at the Directorate General of Customs and Excise under the Ministry of Finance from 2017 to 2024, has been charged in a case that prosecutors allege caused approximately IDR 7.37 trillion in state losses.
According to the indictment, Fadjar allegedly requested the preparation of a scheme that classified certain CPO and derivative products differently during the export process.
The alleged manipulation was linked, among other things, to the preparation of a downstream palm oil industry roadmap. Under the draft, liquid products consisting of CPO with free fatty acid (FFA) levels above 20% were allegedly categorized as acid oil or products associated with PAO/POME.
The classification was allegedly then used during exports to obtain different treatment regarding applicable export duties and levies.
The alleged scheme also involved the testing of goods at Customs and Excise laboratories and the suspected transfer or alteration of Harmonized System (HS) codes during the export process.
Also Read: Attorney General’s Office Probes Misuse of Palm Oil Mill Effluent (POME) Export Permits
Alleged Avoidance of DMO and Export Levies
Prosecutors also alleged that the scheme was designed to circumvent several obligations governing palm oil exports.
These allegedly included requirements for export approvals, the domestic market obligation (DMO), as well as export duties and levies applicable to CPO and its derivatives.
Other defendants named in the case include Lila Harsyah Bakhtiar, a Functional Policy Analyst and Senior Industry Development Advisor at the Ministry of Industry’s Directorate of Forest and Plantation Products from 2021 to 2024.
Also charged is Muhammad Zulfikar, who served as Head of Customs and Excise Services Section VI at the Dumai Customs and Excise Office in 2021.
Also Read: Exports of POME Surpass CPO Volumes, Indonesia Enforces Stricter Export Regulations
Other defendants include PT Sinar Mutiaranusa Palmindo President Director Edy Susanto; PT Tanimas Edible Oil Director Tony; and PT Kencana Permata Nusantara Director and owner Yusrin Husin.
The indictment also names PT Trimitra Agro Jaya Director Randy Tjahyadi Maliwarna; PT Surya Inti Primakarya Director Van Ricardo; PT Agrojaya Perdana Director and owner Felix; PT Bumi Mulia Makmur Director Erwin; and PT Cakra Kaya Kreasi Director Robin.
The defendants have been charged under Indonesia’s anti-corruption laws based on the allegations outlined by prosecutors.
The trial will be closely watched as it examines the alleged manipulation of palm oil product classifications, changes to HS codes, avoidance of export duties and levies, and the flow of funds allegedly received by the parties named in the indictment.
As the case proceeds, all defendants retain their legal rights to present a defense and evidence before the court. The allegations remain subject to judicial examination and determination through the ongoing trial. (P3)
Source: Antara
