Palm Oil Sector Not Escaped From Corruption Bancakan

Photos Of Luthfiah VOI's Work

JAKARTA - The third-largest corruption case that has occurred recently can be uncovered by the Attorney General's Office. After the tin case and Pertamina's oil case were corruption cases in the oil palm plantation sector involving PT Duta Palma Group in the forest area of Indragiri Hulu, Riau. The area, which is still in the form of a forest area, is claimed to belong to the Duta Palma Group.

Through the work creation program, the Regent of Indragiri Raja Thamsir Rachman was able to brain forest areas into oil palm plantation areas by issuing location permits and plantation business licenses (IUP) to four companies of PT Duta Palma Group. The four companies were PT Banyu Bening Utama in 2003, seta PT Panca Agro Lestari, PT Palma Satu, and PT Seberida Subur in 2007.

This case involves the name Surya Darmadi, known as the owner of PT Duta Palma Group and the Regent of Indragiri Hulu, Riau, Raja Thamsir Rachman allegedly involved in corrupt practices that cost the state tens of trillions of rupiah. Surya Darmadi was named a suspect on suspicion of grabbing 37,095 hectares of palm oil in Indragiri Hulu Regency, Riau. So detrimental to the state reaches 78 trillion

So that on August 1, 2022, the Attorney General's Office arrested Surya Darmadi, who has been known as one of the important figures in the oil palm industry in Riau. The permit issuance process is considered illegal without a principle permit with the aim that forest area release permits can be obtained. He is suspected of being involved in the manipulation of permits and management of oil palm land.

According to initial reports, Darmadi is suspected of colluding with a number of regional officials to obtain permits for illegal oil palm land management. This practice not only harms the state in terms of income, but also causes severe environmental damage due to excessive land exploitation.

The accused owner of PT Darmex Group and PT Duta Palma, Surya Darmadi (left) discussed with his legal advisor to the Jakarta Corruption Court, September 8, 2022. (ANTARA-Henry Purba)

"It's okay"

"It's okay"

"It's okay"

"It's okay"

According to Attorney General ST Burhanudin, the investigation into the modus operandi used by Darmadi illegally has issued a location permit of 37,095 hectares for companies affiliated with their companies, namely PT Palma Satu, PT Panca Agro Lestari, PT Seberida Subur, PT Banyu Bening Utama, and PT Kencana Amal Tani, which involves falsifying licensing documents and bribing related officials.

Darmadi is suspected of using his position as Duta Palma to influence the licensing process and secure land that should be protected. In addition, he is also accused of embezzlement of funds that should be allocated for sustainable development programs in the palm oil sector.

Sawit Watch Executive Director Achmad Surambo stated that the issuance of location permits and plantation business licenses was still problematic, because they did not have a permit to release forest areas that must be obtained from the Ministry of Environment and Forestry. "Because of this case, Surya Darmadi and King Thamsir Rachman were sentenced and the case is still ongoing in the Supreme Court," he told Voi, March 03.

Environmental And Economic Impacts

This case not only tarnished the good name of the Riau palm oil industry, but also caused serious environmental impacts. Illegal land exploitation has caused deforestation and habitat for wildlife. In addition, this corrupt practice also harms small palm oil farmers who are unable to compete with large companies suspected of being involved in this case.

From an economic perspective, the state is estimated to have suffered losses of up to hundreds of billions of rupiah due to the loss of revenue from the licensing and land management sector. This loss of course has an impact on regional development, especially in terms of infrastructure and social programs.

Responding to this case, the government through the Prosecutor's Office has taken firm steps by naming Surya Darmadi and the Regent Thamsir as suspects. Even the Prosecutor's Office on January 2, 2025, is still hunting down the case of his money laundering offenses to be able to return the value of state losses from the corruption.

Evidence of confiscated money from the AGO/ANTARA/Nadia Putri Rahmani

"It's okay"

"It's okay"

"It's okay"

"It's okay"

The investigation process is still ongoing, and the Prosecutor's Office promised to thoroughly investigate this case down to its roots. In addition, the government also plans to conduct a thorough evaluation of the licensing system and oil palm management in Riau to prevent a repeat of similar cases in the future.

The people of Riau, especially small palm oil farmers, demanded justice for this case. They hope that the perpetrators of corruption will be punished severely and the state can return assets that have been corrupted. In addition, the community also urges the government to be more transparent in managing the palm oil sector, so that it can provide fair benefits for all parties.

Surya Darmadi's corruption case also dragged the name of the Regent of Indragiri Hulu for the period 1999-2008, Raja Thamsir Rachman, who helped issue location permits and plantation business licenses (IUP) to four companies of PT Duta Palma Group. Thamsir was also appointed by the Prosecutor's Office even though he had been filed in another case and had been imprisoned.

The corruption case of oil palm management involving Surya Darmadi, from the Palm Ambassador in Riau, is clear evidence of how vulnerable this sector is to corrupt practices. This case not only harms the country financially, but also has serious environmental and social impacts. Strict law enforcement and transparency in the management of the palm oil sector are the keys to prevent a repeat of similar cases in the future. The community hopes that this case can be a momentum to improve oil palm governance in Indonesia, so that it can provide sustainable benefits for all parties.

In addition to the two suspects, the Director of Investigation of the Deputy Attorney General for Special Crimes has named 1 (one) individual suspect and 2 (two) corporate suspects, related to the alleged corruption case in the oil palm plantation business activities carried out by PT Duta Palma Group, including the President Director of PT Asset Pacific and the Management/Chairman of the Darmex Foundation with the initials CD, and 2 suspects from the corporation PT Alfa Ledo and from PT Monterado Mas.

In this case, the Prosecutor's Office is also hunting for the money laundering case resulting from corruption in the control of land within the illegal forest area and PT KENCANA AMAL TANI is placed in PT Darmex Plantation, to then be transferred, placed, and disguised, hidden to PT Asset Pacific, Surya Darmadi, PT Ala Ledo, PT Monterado Mas, and YAYASAN DARMEX in the form of deposits, capital deposits, payment of shareholder debt, as well as placement of finance and purchase of domestic and foreign assets which are fully controlled by Cheryl Darmadi and Surya Darmadi. The funds that can be collected and managed to be confiscated amounted to 450 billion.