Former Indonesian Trade Minister Arrested for Corruption Over Sugar Import Permit

In a significant development in Indonesia’s ongoing anti-corruption efforts, authorities have arrested former Trade Minister Thomas Trikasih Lembong. He faces allegations of improperly granting a sugar import permit in 2015, an act that is believed to have caused losses of approximately $25 million to the state.

Allegations and Arrest

Late on Tuesday, prosecutors from the attorney general’s office formally named Lembong as a suspect and took him into custody. The accusations revolve around the issuance of an import permit for 105,000 metric tons of raw crystal sugar during a period when Indonesia was experiencing a surplus of sugar production.

“At that time, Indonesia did not need to import sugar but granted a permit to import 105,000 metric tons of raw crystal sugar,” stated prosecutor Abdul Qohar during a press conference. He further explained that the decision to grant this permit was made without consultation with other government agencies and lacked recommendations from the Ministry of Industry. This decision is reported to have resulted in losses amounting to 400 billion rupiah.

Lack of Political Motive

The attorney general’s office has denied any political motives behind the investigation, despite Lembong’s previous role as a close aide to former President Joko “Jokowi” Widodo. The prosecutors did not disclose details about any potential financial incentives Lembong may have received in exchange for issuing the permit to the private company, identified only by its initials, PT.

Following his arrest, Lembong was seen in media reports handcuffed and wearing a pink detainee vest. He expressed his resignation to the situation, stating, “I surrender everything to God Almighty” after the press conference. Attempts by Reuters to reach Lembong or his legal representatives for further comment were unsuccessful.

Background on Thomas Trikasih Lembong

Lembong, a former investment banker, served as Indonesia’s trade minister from 2015 to 2016. In this capacity, he was a significant figure in the administration of President Jokowi, often tasked with crafting international speeches for the leader. However, after leaving office in 2019, Lembong transitioned into a role as a government critic, voicing concerns regarding various policies implemented by the Jokowi administration.

In a notable shift in his political alignment, Lembong acted as the campaign manager for Anies Baswedan during the recent presidential election. Baswedan ran against Prabowo Subianto, the defense minister widely perceived as Jokowi’s favored successor, who officially took office on October 20.

In 2015, the dynamics of Indonesia’s sugar industry revealed a production of 2.49 million metric tons against a consumption of 2.12 million metric tons. The investigation into Lembong’s actions highlights ongoing concerns regarding transparency and governance in the country’s trade policies, particularly in a sector that is crucial for food security and economic stability.