InfoSAWIT, BANDA ACEH — The Aceh Tamiang District Attorney's Office has named two individuals as suspects in a corruption case related to the People's Palm Oil Rejuvenation Program (PSR) for the 2022 fiscal year. This case has resulted in state losses estimated at IDR 3.49 billion.
Fahmi Jalil, Head of the Intelligence Section at the Aceh Tamiang District Attorney's Office, revealed that the two suspects, identified as S and BS, are managers at the Tujoh Tuah Bumoe Marketing Cooperative. S serves as the Cooperative Chairman, while BS is the Treasurer.
"The investigators have named both as suspects after finding strong initial evidence related to the alleged corruption in the implementation of the PSR program. The financial loss to the state amounts to IDR 3.49 billion," Fahmi stated, as quoted by InfoSAWIT from Antara on Thursday (July 10, 2025).
The alleged corruption originated from data manipulation of the program's beneficiaries. The two are accused of creating fictitious documents in the form of land grant letters in the names of 35 farmers. However, investigations revealed that these farmers had never signed the grant documents or received any funds from the government program.
"The farmers listed as beneficiaries were completely unaware of this program. Their names and identities were used without their knowledge," Fahmi added.
The People's Palm Oil Rejuvenation Program is a government initiative aimed at assisting palm oil farmers in replacing old and unproductive plants with superior new ones. Funding is channeled through farmer cooperatives, with the hope of accelerating the modernization of smallholder farms and increasing national palm oil productivity.
However, on the ground, this program is often misused by individuals exploiting weaknesses in oversight and data verification.
"This serves as an important lesson that every state assistance program must be closely monitored. We emphasize that the Attorney's Office will continue to thoroughly investigate any form of state fund misappropriation, especially those harming small farmers," Fahmi asserted.
Currently, investigators are continuing to trace the flow of funds received by the two suspects and the potential involvement of other parties. It is possible that additional suspects may emerge as the case develops.
Both suspects have been intensively interrogated and will be detained for further investigation. They face charges under the Corruption Crime Law, with a maximum penalty of 20 years in prison.
The Attorney's Office also confirmed that it will seek to recover state losses through asset seizure mechanisms if it is proven that there are traceable proceeds from the crime. (T2)
