Jakarta. Indonesian law enforcement authorities have launched an investigation into reports that a sugar factory was permitted to operate on land owned by the Indonesian Air Force in Lampung province.

The probe is being carried out jointly by the Attorney General’s Office and the Corruption Eradication Commission (KPK), following allegations that six companies under the Sweet Indo Lampung group were operating on a combined area of 85,244 hectares, a senior prosecutor said on Wednesday.

Speaking at a joint news conference in Jakarta, Junior Attorney General for Special Crimes Febrie Adriansyah said the land ownership issue traces back to a complex and lengthy history dating to the 1997–1998 Asian financial crisis.

At the time, many conglomerates were saddled with heavy debts and received emergency liquidity support from the central bank under the Bank Indonesia Liquidity Assistance (BLBI). Some of these debtors later failed to repay the state and instead transferred assets such as land and buildings as compensation.

Febrie said determining the legality of current land use would take time, given that decades have passed since the scandal.

“Our focus is on potential corruption in the issuance of business permits,” he said, stressing that the criminal investigation is separate from administrative actions taken by the Ministry of Agrarian Affairs and Spatial Planning, which has already revoked the permits in question.

KPK Deputy for Enforcement Asep Guntur Rahayu said the commission would scrutinize the process behind the issuance of land-use permits to the companies.

“The question is the same: how could this land be traded, and whether the ownership is legally valid or not,” Asep said.

Meanwhile, Agrarian Affairs Minister Nusron Wahid said an audit by the Supreme Audit Body (BPK) had uncovered the existence of plantation business use rights certificates on land owned by the Indonesian Air Force and managed by the Defense Ministry.

“The audit found business use rights certificates covering 85,244 hectares issued in the name of Sweet Indo Lampung and its partners — six entities within the same group — on state-owned land,” Nusron said.

The Chief of Staff of the Indonesian Air Force, Air Chief Marshal Mohamad Tony Harjono, was also present at the conference.