Indonesia arrests executives of palm firms in bribery probe

Golden Agri-Resources

28/10/2018 09:49

JAKARTA, Oct 28 (Reuters) - Indonesia's anti-graft agency
has arrested seven people, including a senior executive of palm
firm Sinar Mas Agro Resources and Technology  SMAR.JK , in
connection with a bribery case, an official at the agency said
on Sunday.
    The Corruption Eradication Commission, known as KPK, named
vice president director of Sinar Mas Agro, Edy Saputra Suradja,
chief executive of PT Binasawit Abadi Pratama, Willy Agung
Adipradhana, and some members of Central Kalimantan parliament
as suspects in the case, KPK Deputy chief Saut Situmorang told
Reuters.
    Both Sinar Mas Agro and Binasawit are subsidiaries of
Singapore-listed palm oil giant Golden Agri-Resources Ltd
 GAGR.SG .
    The people are accused of bribing parliamentarians to avoid
an investigation into Binasawit's plantation permits and palm
processing waste near Sembuluh lake in the Borneo island,
Situmorang said.
    Golden Agri, in a statement following the arrest, said: "The
company will cooperate fully with the ongoing investigation and
hopes that the issues can be resolved as quickly as possible".
    It called the case "gravely concerning and regrettable" and
stated that its Indonesian operations and subsidiaries must be
managed in accordance to the law and regulations in the country.
    A statement on behalf of both Sinar Mas Agro and Binasawit
said all parties are fully cooperating with the investigation.
    Reuters could not immediately reach Suradja, Adipradhana or
their lawyers for comment.
    Indonesia is the world's top producer of palm oil. It has
faced pressures from international buyers and environmentalists
to make the industry more sustainable.
    Central Kalimantan parliament had received complaints from
residents that palm waste, allegedly from Binasawit's
plantation, had polluted Sembuluh lake, Situmorang said. 
    During a site visit to investigate the matter, parliament
members found problems with Binasawit's permit for use of forest
areas, he said. He did not elaborate.
    In the operation, KPK confiscated 240 million rupiah
($15,774) authorities suspect had been intended as bribe money,
Situmorang said.
    
($1 = 15,215.0000 rupiah)

 (Reporting by Agustinus Beo Da Costa; Additional reporting by
Cindy Silviana; Writing by Gayatri Suroyo; Editing by
Christopher Cushing)
 ((gayatri.suroyo@thomsonreuters.com; +622129927609; Reuters
Messaging: gayatri.suroyo.thomsonreuters.com@reuters.net))