The Case of Sugar Factory Land Encroachment for Sugarcane Plantations: Over Rp 1 Trillion Seized

The Attorney General’s Office (Kejagung) has uncovered a case of land encroachment by a sugar factory for use as sugarcane plantations. The Attorney General’s Office has explained the details of this case.

This was stated by the Director of Investigation of the Junior Attorney General for Special Crimes (Jampidsus), Saiful Bahri Siregar, during a press conference at the Attorney General’s Office building, South Jakarta, on Thursday (10/09/2026). Saiful Bahri revealed the unlawful actions carried out by PT PSMI within the area of PT Inhutani V in Lampung Province.

For context, PT Pemuka Sakti Manis Indah (PSMI) is a private company operating in the sugarcane plantation and sugar factory sector. The company is located in Pakuan Ratu, Way Kanan Regency, Lampung.

“Unlawful acts or the abuse of authority by PT PSMI with other parties were discovered in the following manner. PT Inhutani V Lampung obtained a permit to manage forest areas based on the Decree of the Minister of Forestry No. 398 of 1996 regarding the Granting of Industrial Plantation Forest Possession Rights over an area of approximately 157 ha, which is part of the production forest,” said Saiful.

However, PT PSMI subsequently proceeded to manage forest areas in Way Kanan Regency by clearing forests for sugarcane plantations.

“Since 2007, PT PSMI has been managing land owned by PT Inhutani V in Way Kanan Regency by clearing forests and utilising forest products to establish sugarcane plantations covering 32,375 ha,” he said.

“In 2013, the board of directors of PT PSMI signed an MoU with PT Inhutani V (Persero),” he continued.

The purpose of the MoU was for the development of plantation forests. The agreement was made with retroactive effect.

“The aim was the development of intercropping plantation forests, with an agreement that applied retroactively from 2007 until its signing in 2013,” he revealed.

This action has resulted in state losses, as the development of the sugarcane plantation was conducted under an invalid agreement.

“The actions of PT PSMI in clearing forest areas and controlling plantation land with PT Inhutani V (Persero) were unlawful and have resulted in state losses. This is because, in the development of these sugarcane plantations, the Minister of Forestry, through the Director General, has declared the agreement invalid,” he said.

Following this disclosure, PT PSMI subsequently surrendered several sums of money, namely Rp 1 trillion, Rp 3.1 billion, and USD 166,000.

“As a form of transparency and accountability of performance to the public, investigators have voluntarily received from PT PSMI amounts of Rp 1 trillion, Rp 3.1 billion, and USD 166,000, which we have deposited into Himbara banks,” he said.

Observations at the location on Thursday (10/09/2026) showed the piles of seized money displayed in the lobby of the Attorney General’s Office, South Jakarta. The mountains of Rp 100,000 notes were arranged in stacks resembling a ‘mattress’ in the press conference area under tight security.

The banknotes were grouped into clear plastic wraps, with each package valued at Rp 1 billion. In the press conference area, a screen displayed the details of the seizures from PT Pemuka Sakti Manis Indah (PSMI), totalling Rp 1,003,184,000,000 and USD 166,000.