Jakarta. Former Trade Minister Thomas Trikasih Lembong has been indicted for alleged corruption in a sugar import scheme that caused an estimated state loss of Rp 578 billion ($35.4 million) between 2015 and 2016.

According to prosecutors, Lembong's actions benefited 10 private entities that have also been named suspects in the case.

"The state's financial loss amounts to Rp 578 billion as stated in the audit report on state losses," prosecutors said in the indictment read on Thursday.

Tom Lembong allegedly issued sugar import approvals without going through coordination meetings or obtaining recommendations from relevant ministries. He is also accused of allowing private companies to import raw sugar for processing domestically, despite sufficient local production at the time.

"He permitted the import of raw sugar for processing into white crystal sugar, even though these companies were only authorized to refine sugar, not to produce white crystal sugar," prosecutors stated.

Additionally, Lembong reportedly bypassed state-owned enterprises (SOEs) that were responsible for maintaining sugar supply and price stability. Instead, he assigned trading firm Perusahaan Perdagangan Indonesia (PPI) to procure white crystal sugar.

"The defendant failed to regulate sugar distribution for stock management and price stabilization, a role that should have been carried out by SOEs through market operations or subsidized sales," the prosecution added.

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