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Transition: Arrest of Former Widodo Trade Minister Tom Lembong is Not Political, Claims Indonesia’s AGO

“…not political…”

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Arrest of Former Widodo Trade Minister Tom Lembong is Not Political, Claim Investigators from Indonesia’s Attorney General’s Office

By Dinda Shabrina and Suseno for Tempo.co, Oct 29, 2024

TEMPO.CO, Jakarta – Director of Investigation at Indonesia’s Attorney General’s Office for Special Crimes, Abdul Qohar, said there was no politicization in the decision to name Thomas Trikasih Lembong a suspect in a criminal investigation. The former Minister of Trade, better known as Tom Lembong, was named a suspect in a corruption case involving the importation of sugar that is suspected of causing government losses of approximately Rp400 billion ($USD27 million).

Abdul said his side had done the work and named Tom Lembong as a suspect in accordance with the relevant procedures. “Investigators work based on procedures. That’s what needs to be underlined,” said Abdul at the Attorney General’s Office, South Jakarta, October 29, 2024.

Abdul also said that when investigators have found complete evidence related to a case, there is no selective process in decisions to name suspects. “Whoever the perpetrator is, when complete evidence is found, investigators will decide that the person concerned as a suspect,” he said.

He explained that the investigation into the case had been going on for a year. Abdul said the investigation began in October 2023 with 90 witnesses having been questioned.

Meanwhile, the new suspects named include two people, Tom Lembong, and CS as the Director of Business Development at the company PT PPI (Indonesian Trading Company). Tom Lembong is suspected of being involved in granting import permits for 105,000 tons of raw crystal sugar.

“Mr. TTL (Tom Lembong) is suspected of giving a permit to import 105,000 tons of raw crystal sugar to PT AP, which was then processed into white crystal sugar,” said Abdul.

In accordance with Decree of the Minister of Trade and Minister of Industry Number 257/2004, Abdul said that only Indonesia’s government owned enterprises  (BUMN) were allowed to import white crystal sugar, but based on the import approval issued by suspect Tom Lembong, the sugar was imported by PT AP.

“The import of crystal sugar did not go through a coordination meeting with the relevant  agencies and without any recommendation from the Ministry of Industry to determine the actual requirement for sugar domestically,” he explained.

This article is based on https://metro.tempo.co/read/1934709/kejagung-klaim-penetapan-tersangka-tom-lembong-bukan-politisasi

In earlier news…

The Suffering Behind the War of Words Between Tom Lembong and Ministers Luhut & Bahlil

Press Release, Mining Advocacy Network (JATAM), Jan 26, 2024

Indonesia’s Investment Minister Bahlil Lahadalia and Coordinating Minister for Maritime Affairs and Investment Gen. (Retd.) Luhut Binsar Pandjaitan have issued strong responses to remarks made by Thomas Lembong, co-head of the national presidential election campaign of candidates Anies Baswedan and Muhaimin Iskandar, about Indonesia’s nickel processing policy and electric vehicle industry.

In a recent post by the podcast Total Politik, Lembong, a former Trade Minister and head of Indonesia’s Investment Coordinating Board (BKPM), criticized the extensive smelting initiatives, warning that domestic oversupply risks could depress nickel prices.(1) He also highlighted Tesla’s shift in China to Lithium Ferro Phosphate (LFP) batteries, which eliminates the need for nickel altogether.(2)

The ensuing war of words reflects a focus among Indonesia’s political elite on industrial priorities rather than the welfare of impacted communities. Neither Lembong, nor Ministers Luhut and Bahlil, have publicly acknowledged the detrimental effects of nickel downstreaming on local populations, which has left many impoverished while boosting industry profits.(3) Nickel extraction expansion has displaced communities, polluted water sources, damaged marine ecosystems, degraded forests, and triggered health crises, violence, criminalization, and workplace accidents—some resulting in fatalities.

Also Read: Elections: China Downstream, The Tentacles of Indonesia’s Nickel Oligarchy By Project Multatuli

This dire situation is evident across Indonesia’s major nickel industrial estates, from PT Indonesia Morowali Industrial Park (IMIP) in Morowali in southern Sulawesi, PT Gunbuster Nickel Industry in North Morowali, Virtue Dragon Nickel Industry in Konawe, Indonesia Weda Bay Industrial Park (IWIP) in Central Halmahera in Maluku province, to the industrial complexes on Obi Island under the Harita Group’s control.

The political and business dynamics of these clashes, set against the backdrop of Indonesia’s 2024 presidential election, reveal more than just the flaws in President Joko Widodo’s accelerated nickel downstreaming agenda. Co-ordinating Minister Luhut and Minister Bahlil’s opposition to Lembong’s criticisms could be seen as defending vested interests within Indonesia’s political-business complex.(4)

Minister Bahlil, for instance, has ties to PT Meta Mineral Pradana, a nickel mining company with two concessions in North Konawe, Southeast Sulawesi, owned by his PT Papua Bersama Unggul (90% ownership) and PT Rifa Capital (10%).

Similarly, Co-ordinating Minister Luhut’s stake connects him to PT Energi Kreasi Bersama (Electrum), a joint venture between PT GoTo Gojek Tokopedia Tbk and PT TBS Energi Utama Tbk (TOBA), a company owned by Luhut. Electrum focuses on developing an integrated electric vehicle ecosystem, from manufacturing electric motorcycles and battery technology to battery swapping stations and charging infrastructure. Through GoTo, Luhut’s interests align with Garibaldi “Boy” Thohir, a recent vocal supporter of the presidential election candidates Prabowo Subianto and President Joko Widodo’s son Gibran.(5) Boy Thohir holds shares in and sits on the Board of Commissioners of GoTo.(6)

Ultimately, the high-profile clash involving Tom Lembong, Luhut, and Bahlil appears to prioritize personal and industrial interests over the environmental and social toll of nickel extraction. The nickel debate, rather than addressing the plight of affected communities or mitigating environmental destruction, seems geared toward securing political gains in Indonesia’s 2024 presidential election.

Also Read: Transition: Mass Movements NU and Muhammadiyah To Get Cabinet Posts in New Government After Accepting Mining Permits, Tempo

Regardless of whether Tesla relies on Indonesian nickel, mining operations in Sulawesi, Maluku, and Papua continue unabated, with scant regard for the suffering of residents and ongoing environmental degradation.

This article is based on https://jatam.org/id/lengkap/derita-warga-di-balik-saling-serang-tom-lembong-vs-luhut-bahlil

In related news:

One response to “Transition: Arrest of Former Widodo Trade Minister Tom Lembong is Not Political, Claims Indonesia’s AGO”

  1. Op-Ed: The Politicization of Former Trade Minister’s Arrest – Stories From Indonesia Avatar
    Op-Ed: The Politicization of Former Trade Minister’s Arrest – Stories From Indonesia

    […] the office has frequently acted as a “hammer” against those opposed to government interests. The naming of Thomas Trikasih Lembong, known as Tom Lembong, as a suspect in a sugar importation cor… indicates that this practice is being continued under the government of recently-inaugurated […]

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