Plantation company head queried over sugar smuggling

The Jakarta Post, Jakarta

Police questioned on Friday state plantation company PT Perkebunan Nusantara (PTPN) X president director Duduh Sadarachmat as a witness in connection with the discovery of smuggled sugar in several warehouses at Tanjung Priok, Jakarta, and in Bekasi and Bogor, West Java.

"It is still possible that we will name him (Duduh) as a suspect if we find enough evidence," National Police chief of detectives Comr. Gen. Suyitno Landung Sudjono told reporters.

Suyitno said Duduh could be charged under Articles 102 and 103 of Law No. 10/1995 on smuggling, which carries a maximum sentence of eight years in prison and a Rp 500 million (US$53,191) fine.

He said the police would focus their investigation on the role of PTPN X, a state firm permitted to import sugar.

Besides Duduh, Suyitno said the police would also question several government officials.

Referring to them by their initials, he said the police would summon, among others, T from the Ministry of Industry and Trade and TW from the Jakarta Association of Cooperatives (Inkud).

Suyitno said the police would also question three officials from the Customs and Excise office after they undergo an internal investigation.

Police launched an investigation into PTPN X as its license to import the commodity expired in April.

PTPN IX, PTPN XI, PPI, and PT RNI are the only state firms currently authorized to import sugar.

The Indonesian Sugarcane Farmers Association (APTR) filed a report with police early this week after discovering 56,000 tons of smuggled sugar inside a warehouse in Tanjung Priok port, North Jakarta.

APTR said the sugar belonged to PTPN X, PT Phoenix Commodities Indonesia and Inkud.

Sugar smuggling has hurt thousands of sugarcane farmers across the country as imported sugar is sold at Rp 2,100 (US 22 cent) per kilogram, lower than the market price of local sugar at between Rp 3,200 and Rp 3,500 a kilogram.

Indonesian sugar production stood at 1.8 million tons in 2002, while the demand that year reached 3.2 million tons.

The government has been unable to stop the widespread smuggling.

The customs office at the country's main port of Tanjung Priok recently confiscated 3,674 tons of smuggled sugar, while reports estimate about 24,000 tons of illegal sugar enters the country via West Kalimantan every year.