Jihan Ristiyanti, Iqbal Muhtarom, Jakarta – The Attorney General's Office is investigating alleged corruption in the governance of palm oil at the Ministry of Environment and Forestry (KLHK). Investigators from the Special Task Force Deputy Attorney General for Grantee Allegations at the Attorney General's Office raided the KLHK Office at Manggala Building on Thursday, October 3, 2024.
Tempo's source mentioned that the investigation of this alleged corruption is based on a report from a palm oil company undergoing a legalizing process, as stipulated in Article 110A of the Omnibus Law.
Article 110A of the Omnibus Law regulates companies that had business permits before the Omnibus Law was enacted. These companies were given leniency to be whitened or legalized as long as they fulfilled the requirements before November 2023. If they fail to meet the deadline, they will be subject to administrative sanctions, which include permit revocation or fines.
The head of the Legal Information Center of the Attorney General's Office, Harli Siregar, confirmed the information obtained by Tempo. However, he referred to the company's report as a report from the community.
"Yes, from a community report, as for who made the report, I don't know," said Harli Siregar when met by Tempo at his office on Tuesday, October 15, 2024.
"The company's report is part of the community report, we categorize it all as community reports," he said.
According to Tempo's source, the company's report reached the Attorney General's Office in the fourth week of September 2024. However, he explained that long before the report was submitted, the Task Force for Improving Palm Oil Industry Governance and State Revenue Optimization – the Attorney General's Office is part of that team – already knew about the alleged corruption.
He mentioned that most companies undergoing the legalizing process at KLHK also experienced the same issues. However, only one company officially reported to the Attorney General's Office. "Only one officially reported," said the source on Thursday, October 17.
Meanwhile, Harli stated that the investigation order regarding the raid at KLHK was issued in October. "This month, the investigation order," said Harli. For information, the alleged corruption case in palm oil governance being investigated by KLHK involves the period from 2005 to 2024.
Meaning this case existed before the Omnibus Law. However, there may be some correlation. "It could be correlated or not," said Harli, who couldn't explain in more detail whether the case is related to KLHK's authority under Article 110A and Article 110B of the Omnibus Law.
However, regarding KLHK's authority in palm oil governance, companies found planting oil palms in forest areas should pay administrative sanctions, including administrative fines and non-tax state revenue payments.
In the same week, when the raid case in KLHK was highlighted, information about state budget leaks from palm oil governance related to administrative sanctions stipulated in Article 110A and Article 110B surfaced. A total of Rp 300 trillion budget leak was identified from those provisions. The data was from an audit conducted by the Financial and Development Supervisory Agency (BPKP).
Head of the Financial and Development Supervisory Agency (BPKP) Muhammad Yusuf Ateh explained that the state budget leak of Rp 300 trillion is the cumulative result of fines from palm oil companies operating in forest areas and discrepancies in fine payments. "But most of it is under 110B," said Ateh on Tuesday, October 15, 2024.
He referred to Article 110B of Law No. 6 of 2023 concerning the Determination of Government Regulations replacing Law No. 2 of 2022 concerning Job Creation. Article 110B essentially provides businesses operating in forest areas an opportunity to process permits no later than three years after Law 6/2023 came into effect. Violators of these provisions face administrative penalties.