Indonesia arrests former trade minister in sugar import graft case

Indonesian authorities investigating graft have arrested a former trade minister turned government critic on suspicion of improperly granting a sugar import permit in 2015 that led to losses of $25 million.

Thomas Trikasih Lembong was named a suspect and arrested late on Tuesday by prosecutors from the attorney general’s office, accused of giving the permit to a private company at a time when Indonesia had a surplus of sugar, the office said.

“At that time, Indonesia did not need to import sugar but (Lembong) granted a permit to import 105,000 metric tons of raw crystal sugar,” prosecutor Abdul Qohar told a press conference.

There was no consultation with other state bodies or a recommendation from the industry ministry, he said, adding that the decision had led to losses of 400 billion rupiah ($25.42 million).

Qohar did not say what Lembong is accused of having received in return for the permit to the company, which authorities identified only by its initials, PT AP.

The attorney general’s office denied that its investigation had a political motive.

“I surrender everything to God Almighty,” media reported Lembong, handcuffed and wearing a pink detainee vest, as saying after the press conference.

Reuters could not reach Lembong or his lawyer to seek comment.

A former investment banker, Lembong was Indonesia’s trade minister between 2015 and 2016 and a close aide of former president Joko “Jokowi” Widodo, for whom he often wrote international speeches.

But after leaving office in 2019, he became one of the staunchest critics of Jokowi’s government.

Lembong was a campaign manager in February’s presidential election for Anies Baswedan, who ran against the winner, defence minister Prabowo Subianto, widely seen as Jokowi’s preferred successor, who took office on Oct. 20

Indonesia’s sugar output in 2015 was 2.49 million metric tons, while consumption was 2.12 million.

Source: Reuters
--Agencies