Illegal Sugar: Who Profits?

FINALLY, the sugar affair has reached the National Police Headquarters. Last Monday, the Association of Sugarcane Farmers brought the case forward after the discovery of 56,000 tons of unclaimed sugar in North Jakarta. Three names have surfaced that are thought to have played a role in the operation: PT Perkebunan X, Induk Koperasi Unit Desa, and PT Phoenix Commodities. TEMPO followed the sugary trail from Tanjung Balai in North Sumatra, Sampi in Central Kalimantan, Port Klang in Malaysia all the way to Tanjung Priok, Jakarta. With a total import value of more than Rp5 trillion a year the profits are irresistibly sweet for many. Who are the players? What is their modus operandi? Turn the page to read the report!

June 22, 2004

THE mountain of sacksfilled with illegal contrabandwere piled high. The white powder, wrapped inside plastic sacks and stamped with Thai characters, were not supposed to be in this North Jakarta warehouse or, for that matter, in the Republic of Indonesia. Uncovered in a surprise inspection on June 12, their contents were thrust into the spotlight, as television cameras caught the event on tape. The sacks contained illegally imported sugar.

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