Surya Dharmadi has ordered the state to repay the equivalent of $2.6 billion for a corrupt scheme that cleared protected forests.
Medan, Indonesia – Surya Dalmadi, one of Indonesia's biggest palm oil tycoons, has been sentenced to 15 years in prison for his role in a corruption scheme that led to the deforestation of thousands of hectares of protected land on the island of Sumatra, costing the country 2.6 billion yen. He was ordered to repay the amount equivalent to US dollars. .
Dalmadi bribed Indonesian officials in Riau province, a major palm oil production hub, to convert more than 36,420 hectares (90,000 acres) of forest into oil palm plantations affiliated with his company, PT Duta Palma. was indicted on charges of causing.
Investigators who scrutinized the company's finances before the trial alleged that the property generated about $40 million a month in revenue for PT Duta Parma, and that Dalmadi had committed money laundering and tax evasion since 2002. He was accused of doing so.
Used in countless products, from food and cosmetics to biofuels, palm oil is an extremely lucrative business, and Indonesia is the world's largest producer and exporter of palm oil products. According to the Indonesian Palm Oil Association, Indonesia exported more than 30 million tons of palm oil products in 2022, generating more than $39 billion in revenue.
Rico Kurniawan, director of Paradigma, a Sumatran non-governmental organization focused on social justice and environmental issues, said palm oil companies are rife with corruption and are allowed to bribe officials. Dalmadi's sentence was a turning point, he said, as criminals often escape legal action.
“Dharmadi's case is an exception because we rarely see people in the palm oil industry held accountable,” Kurniawan told Al Jazeera. “This is truly unprecedented.”
“In this case, the prosecution was very wise in consolidating the case with a variety of charges, including corruption and money laundering, to ensure that Mr. Darmadi faced the full scope of the law,” he added.
Prosecutors in the case have accused Darmadi of inflicting 73 trillion Indonesian rupiah ($4.8 billion) in losses to the country through corruption, making him the perpetrator of the largest corruption scheme in Indonesia's history.
But a panel of judges led by Judge Fazal Hendry cited Dalmadi's age and ongoing heart condition as reasons for not sentencing the 71-year-old to life in prison as requested, saying a 15-year sentence lacked substance. He argued that it should not be considered that
“Corruption is an extraordinary crime and we need to set an example for others,” Hendry said. “That being said, there is a humanitarian factor here. There are no tricks, there are just humanitarian reasons for the sentence.”
Judge Hendry found Mr. Dalmadi guilty of corruption and money laundering charges, giving Mr. Dalmadi 2.2 trillion rupiah ($144 million) that he had previously failed to pay to the government, and a further 39 trillion rupiah ($144 million). ordered to repay national losses of $2.5 billion.
According to Greenpeace, Indonesia has the third largest tropical forest in the world and is home to up to 15 percent of the planet's known plants, mammals and birds.
Greenpeace Indonesia said in a 2021 report that oil palm plantations were the “largest single cause of deforestation in Indonesia over the past 20 years.”
Global Forest Watch revealed that Indonesia lost 230,000 hectares (568,300 acres) of primary forest in 2021.
Darmadi was first named as a suspect in 2014, when the Indonesian Corruption Eradication Commission sought to amend forestry regulations to make it easier for PT Duta Palma to operate under former Riau governor Anas Mamun. He was accused of paying $200,000 in bribes to
In 2022, he was again named as a suspect for allegedly making payments to Raja Tamsir Lakman, the former head of Indragiri Hulu district in Riau province, who issued business licenses to five of PT Duta Palma's subsidiaries.
Dalmadi fled Indonesia in 2014 and evaded extradition attempts, but returned to Indonesia of his own accord last year and was arrested.
In 2018, Forbes estimated Darmadi's net worth at 20 trillion rupiah ($1.3 billion).
In addition to a 15-year prison sentence and a restitution order, Dalmadi was fined $65,000 by the court. Failure to pay the requested $2.6 billion within one month of the final judgment will be replaced by an additional five years in prison, the court ruled.
“We will appeal, we will appeal, Your Honor. Your Highness, thank you for your donation. [me] 15 years,” Dalmadi said after the sentencing.
