Rizky Amelia, Jakarta – The Corruption Eradication Commission (KPK) on Friday officially named Riau governor Annas Maamun a suspect for allegedly taking Rp 2 billion ($166,000) in kickbacks to issue a land-conversion permit.

"From our intensive investigation and the cross-examination by KPK investigators and leaders, the status of this case has been raised by declaring A.M., the Riau governor, a suspect," KPK chief Abraham Samad told a press conference on Friday.

The case relates to a permit issued to convert 140 hectares of forest in Kuantan Singingi district into a palm oil plantation. Gulat Manurung, a businessman and academic, was also arrested on suspicion of bribery.

Annas was arrested in a house in Cibubur, on the outskirts of Jakarta, along with eight other people on Thursday afternoon. Abraham said Annas was caught red-handed with S$156,000 ($125,000) and Rp 500 million in cash.

Prior to his arrest, Annas was also accused of sexual assault by Wide Wirawaty, a woman who visited the governor's residence on official business. Annas denied the allegation and reported Wide to police for defamation.

It will be grim news for Indonesia's forestry activists if graft investigators are able to prove that the governor of Riau has been selling palm oil permits to the highest bidder.

The province of Riau in the east of Sumatra is a frontline in the archipelago's battle to contain rampant deforestation. Every year fires burn in the province's peatlands as local farmers, sometimes backed by major foreign and domestic palm oil companies, try to clear forests for plantation.

As a consequence, in addition to destroying more of the country's forests, poisonous fumes are being sent over densely populated residential areas. The air quality descends into hazardous levels, short-term respiratory problems become ubiquitous and children are diagnosed with long-term illnesses including asthma.

An investigation is ongoing.

Source: http://www.thejakartaglobe.com/news/riau-governor-named-suspect-selling-forests-palm-oil/