Indonesian authorities investigating corruption have arrested a former trade minister on suspicion of improperly granting a sugar import permit in 2015, which resulted in losses of $25 million.
Thomas Trikasih Lembong was named a suspect and taken into custody late on Tuesday by prosecutors from the attorney general’s office. He is accused of issuing the permit to a private company despite Indonesia having a sugar surplus at the time.
“At that time, Indonesia did not need to import sugar, yet a permit was granted for the import of 105,000 metric tons of raw crystal sugar,” prosecutor Abdul Qohar stated at a press conference.
He noted that there was no consultation with other state agencies or recommendations from the industry ministry, and that this decision led to losses of 400 billion rupiah.
According to the news report by Reuters, Qohar did not disclose what Lembong allegedly received in exchange for the permit, which was granted to a company identified only by its initials, PT.
The attorney general’s office has denied any political motives behind the investigation.
“I surrender everything to God Almighty,” Lembong reportedly said after the press conference, appearing handcuffed and wearing a pink detainee vest.
A former investment banker, Lembong served as Indonesia’s trade minister from 2015 to 2016 and was a close aide to former president Joko “Jokowi” Widodo, for whom he frequently wrote international speeches. However, after leaving office in 2019, he became one of Jokowi’s most vocal critics.
In 2015, Indonesia produced 2.49 million metric tons of sugar, while consumption was 2.12 million metric tons.
