The story of Zakariya Abdi, a victim of the oil frying scam that suffered a loss of Rp7 million.

JAKARTA - The investment climate and legal certainty are once again in the spotlight after businessman Zakariya Abdi Artan, reported the palm oil supplier company, PT DSA, to the Polda Metro Jaya for alleged business fraud with a loss of billions of rupiah.

Zakariya suffered a loss of around 450,000 US dollars (USD) or more than Rp7 billion for the cooperation in the purchase of crude oil that was never realized.

The report was filed since March 9, 2024, but until now it has not shown significant progress.

This case began in March 2022, when Zakariya, representing a number of foreign investors, ordered 50 containers of RBD Palm Olein CP10 crude oil to PT DSA.

The product is planned to be exported to Djibouti, Africa, as part of Indonesia's international palm oil trade chain.

According to Zakariya, all transaction funds have been handed over to the company at the PT DSA office in Cikarang, Bekasi Regency, West Java, with a promise of delivery within one month.

"But for months, the promised oil has never existed. There is no export, no goods," said Zakariya.

He said LSP, President Director of PT DSA LSP often gave repeated excuses without realization.

Feeling there was something wrong, Zakariya finally canceled the cooperation.

In 2023, the two parties signed a cancellation agreement accompanied by a promise of a refund, but the agreement was also not carried out.

Not only did he suffer financial losses, Zakariya admitted that his business reputation was also affected.

The trust of foreign investors who have been working with him has begun to be disturbed, so he was forced to return investor funds using personal money.

"This is not only material loss, but also intangible loss. My credibility as an international business partner is at stake," he said.

This case also highlights the track record of the reported. LSP is known to have previously been entangled in legal cases related to repackaging subsidized bulk cooking oil into premium products.

In November 2022, LSP was arrested by the Criminal Investigation Unit of the National Police and was convicted by the Cikarang District Court in March 2023, with state losses in the case reaching Rp. 26.6 billion.

Zakariya hopes that law enforcement officials can immediately complete their report so that it does not drag on and create a negative perception of the investment climate in Indonesia.

"I have spent a lot of money and energy to seek justice. This concerns the trust of foreign investors who run businesses in Indonesia," he said.

He even asked for direct attention from President Prabowo Subianto, so that the case would be a serious concern for the government in order to maintain legal certainty and investor protection.

Meanwhile, Head of Public Relations (Kabid) of the Metro Jaya Police, Kombes Pol Budi Hermanto, said that the case was included in the in-depth investigation.

"The case is ongoing and currently with the new Criminal Code, there are new articles that have been added, the investigator will hold a case to increase the status of the suspect," he said.

Encourage the Export of Local Products

Zakariya is known to have settled in Indonesia for several decades. He studied at the University of Muhammadiyah Jakarta and built a business network to help local MSMEs and producers penetrate the global market.

Various Indonesian products that he markets include sarongs, textiles, honey, and processed foods, with the aim of exporting to the Middle East, Africa, and Europe.

"I see the great potential of Indonesian products in the international market. I came to build, not to destroy," he said.

The case involving Zakariya is considered an important reminder of the importance of strengthening business supervision, investor protection, and consistent enforcement of laws, in order to maintain competitiveness and market confidence in the national trade and industry sectors.