Import Duty Exemptions Not Linked to State Assignments, Investment Ministry 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, revealed that import duty exemption facilities for importation activities are granted in the context of capital investment, not based on state assignments. Consequently, if a state-owned enterprise (BUMN) receives an assignment for importation activities but the purpose is not capital investment, it does not qualify for the exemption.
"Import duty exemptions have no connection to assignments. This is in accordance with what is stated in the import duty exemption decree," said Roro while giving testimony at the trial of former Trade Minister Thomas Trikasih Lembong, also known as Tom Lembong, at the Central Jakarta Corruption Court on Monday, 21 April 2025.
She affirmed that import duty exemption facilities granted to sugar industry companies, in accordance with the investment coordinating board's decision, do not cover assignments or sugar price stabilisation. The regulation is in line with the Minister of Finance Regulation (PMK) concerning the development/expansion of import duty exemptions on imported machinery and goods.
Roro explained that BKPM provides capital investment facilities, so when a company receives an assignment to import sugar for the purpose of maintaining price stability, this falls outside the authority or provisions regulated under the Minister of Finance Regulation.
Previously, prosecutors charged Tom Lembong with causing state financial losses amounting to Rp 578.1 billion. This was based on a BPKP report, namely the "Audit Report on the Calculation of State Financial Losses on Alleged Corruption in Sugar Importation Activities at the Ministry of Trade from 2015 to 2016," dated 20 January 2025.
Tom Lembong was also charged with enriching other individuals or corporations by Rp 515.4 billion. This figure constitutes part of the Rp 578.1 billion in state financial losses. However, prosecutors did not explain in their indictment where the remaining Rp 62.7 billion in losses originated from.
According to the indictment, the Rp 578.1 billion in state financial losses stemmed from two sources. First, from inflated prices paid by PT Perusahaan Perdagangan Indonesia (PT PPI) in procuring white crystal sugar for price stabilisation assignments or market operations. Second, from shortfalls in import duty payments and taxes related to imports (PDRI).
"Import duty exemptions have no connection to assignments. This is in accordance with what is stated in the import duty exemption decree," said Roro while giving testimony at the trial of former Trade Minister Thomas Trikasih Lembong, also known as Tom Lembong, at the Central Jakarta Corruption Court on Monday, 21 April 2025.
She affirmed that import duty exemption facilities granted to sugar industry companies, in accordance with the investment coordinating board's decision, do not cover assignments or sugar price stabilisation. The regulation is in line with the Minister of Finance Regulation (PMK) concerning the development/expansion of import duty exemptions on imported machinery and goods.
Roro explained that BKPM provides capital investment facilities, so when a company receives an assignment to import sugar for the purpose of maintaining price stability, this falls outside the authority or provisions regulated under the Minister of Finance Regulation.
Previously, prosecutors charged Tom Lembong with causing state financial losses amounting to Rp 578.1 billion. This was based on a BPKP report, namely the "Audit Report on the Calculation of State Financial Losses on Alleged Corruption in Sugar Importation Activities at the Ministry of Trade from 2015 to 2016," dated 20 January 2025.
Tom Lembong was also charged with enriching other individuals or corporations by Rp 515.4 billion. This figure constitutes part of the Rp 578.1 billion in state financial losses. However, prosecutors did not explain in their indictment where the remaining Rp 62.7 billion in losses originated from.
According to the indictment, the Rp 578.1 billion in state financial losses stemmed from two sources. First, from inflated prices paid by PT Perusahaan Perdagangan Indonesia (PT PPI) in procuring white crystal sugar for price stabilisation assignments or market operations. Second, from shortfalls in import duty payments and taxes related to imports (PDRI).