Jakarta – Indonesian prosecutors have arrested and jailed former trade and industry minister Rahardi Ramelan for his alleged involvement in a US$3.8 million fraud case.

Mr Rahardi, who is also the former chairman of State Logistics Agency (Bulog), was a suspect in the case involving misuse of funds from the agency.

He was taken to the Cipinang high-security jail on Thursday afternoon, according to his lawyer Mr Yan Juanda.

He said Mr Rahardi's detention was based on "arguments from prosecutors that my client would destroy evidence or he might flee the country". He had been charged with "acts of corruption" and would be detained initially for 20 days while prosecutors worked to prepare trial documents.

Mr Rahardi, quoted by the state Antara news agency before being taken to jail, said he accepted the arrest "even though I'm shocked and confused".

He is the only suspect to have been detained by prosecutors in the case. Other suspects, including House of Representatives (DPR) Speaker Akbar Tandjung, are still at liberty.

The case concerns the alleged embezzlement of 40 billion rupiah (S$7.2 billion) in Bulog funds, during the administration of President B. J. Habibie in 1999. The money was meant to have been used to feed the country's poor. Mr Rahardi was head of Bulog at the time and Mr Akbar held the ministerial rank of state secretary