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AGO blames corruption for cooking oil scarcity
Trade Ministry official is allegedly bribed to issue palm oil export permits, which have caused domestic supply shortages and cooking oil crisis in the country.
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People queue to purchase cooking oil provided by the local government in Surabaya on February 18, 2022, in an effort to stabilize prices due to shortages. (AFP/Juni Kriswanto)
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rade Minister Muhammad Lutfi has vowed to support and cooperate with the Attorney General's Office (AGO) in an investigation into alleged corruption that involves a senior ministry official and is believed to have led to a scarcity of cooking oil and subsequent high prices on the local market.
The AGO has named and detained four suspects in the case, including the Trade Ministry’s foreign trade director general, Indrasari Wisnu Wardhana, who had allegedly issued export permits illegally for several palm oil producers.
"I have instructed my office to support the investigation because corruption and abuse of power have a detrimental impact on the national economy and harm the public," Lutfi said in a statement on Tuesday.
He added that he always reminded his subordinates to ensure a proper, transparent trade licensing process.
The three other suspects are executives from three private companies, namely Permata Hijau Group, PT Wilmar Nabati Indonesia and PT Musim Mas.
According to the AGO, all four colluded in efforts to illegally obtain export permits. The companies did not qualify for export permits because they had failed to fulfill their domestic market obligation (DMO), which requires CPO producers to sell a certain portion of their planned exports at home no more than Rp 9,300 (64 US cents) per kilogram.
Read also: Top Trade Ministry official named suspect in cooking oil graft case
