Import Duty Exemptions for Sugar Limited to Production Machinery and Raw Materials, Official Testifies at Tom Lembong Trial
TEMPO.CO, Jakarta - Director of Business Facility Services at the Ministry of Investment and Downstreaming/BKPM, Roro Reni Fitriani, stated that the provision of import duty exemption facilities for sugar-producing companies applies only to production machinery and raw materials.
"Facilities for import duty exemption can be granted for production machinery and also raw materials," said Roro while giving testimony at the trial of former Trade Minister Thomas Trikasih Lembong, also known as Tom Lembong, at the Corruption Court of the Central Jakarta District Court on Monday, 21 April 2025.
She explained that import duty exemptions for sugar raw materials could be obtained through the Local Content Level (TKDN) scheme or if the company held a recommendation from the Ministry of Industry. If the machinery used already meets the minimum TKDN threshold of 30 per cent, the exemption would be granted to cover production needs for four years. If the TKDN requirement is not met, businesses holding machinery import duty exemption facilities may receive raw material exemptions for two years.
Roro disclosed that the requirements to be fulfilled by private entities seeking import duty exemptions are stipulated in BKPM Head Regulation No. 5 of 2013, whilst current provisions are governed by BKPM Regulation No. 2, Articles 84 and 85.
In accordance with Ministry of Industry regulations, Roro said, refined crystal sugar is not eligible for import duty exemption facilities. This differs from raw crystal sugar and white crystal sugar, which are eligible for such exemptions.
In this case, public prosecutors at the Attorney General's Office have charged Tom Lembong, who served as Trade Minister from 2015 to 2016, with issuing 21 approvals for raw crystal sugar imports as part of an assignment to build sugar stocks and stabilise sugar prices, granted to ten businesses. Prosecutors contend that these import approvals were issued without the requisite recommendation from the Ministry of Industry.
Tom Lembong has been charged under Article 2 paragraph (1) or Article 3 in conjunction with Article 18 of the Anti-Corruption Law, in conjunction with Article 55 paragraph (1) point 1 of the Criminal Code.
"Facilities for import duty exemption can be granted for production machinery and also raw materials," said Roro while giving testimony at the trial of former Trade Minister Thomas Trikasih Lembong, also known as Tom Lembong, at the Corruption Court of the Central Jakarta District Court on Monday, 21 April 2025.
She explained that import duty exemptions for sugar raw materials could be obtained through the Local Content Level (TKDN) scheme or if the company held a recommendation from the Ministry of Industry. If the machinery used already meets the minimum TKDN threshold of 30 per cent, the exemption would be granted to cover production needs for four years. If the TKDN requirement is not met, businesses holding machinery import duty exemption facilities may receive raw material exemptions for two years.
Roro disclosed that the requirements to be fulfilled by private entities seeking import duty exemptions are stipulated in BKPM Head Regulation No. 5 of 2013, whilst current provisions are governed by BKPM Regulation No. 2, Articles 84 and 85.
In accordance with Ministry of Industry regulations, Roro said, refined crystal sugar is not eligible for import duty exemption facilities. This differs from raw crystal sugar and white crystal sugar, which are eligible for such exemptions.
In this case, public prosecutors at the Attorney General's Office have charged Tom Lembong, who served as Trade Minister from 2015 to 2016, with issuing 21 approvals for raw crystal sugar imports as part of an assignment to build sugar stocks and stabilise sugar prices, granted to ten businesses. Prosecutors contend that these import approvals were issued without the requisite recommendation from the Ministry of Industry.
Tom Lembong has been charged under Article 2 paragraph (1) or Article 3 in conjunction with Article 18 of the Anti-Corruption Law, in conjunction with Article 55 paragraph (1) point 1 of the Criminal Code.