Kejagung Takes Over High-Stakes Corruption Probe into Lampung Forest Land Misuse

JAKARTA – In a significant escalation of efforts to combat natural resource corruption, the Office of the Attorney General of the Republic of Indonesia (Kejagung) has officially assumed control over a high-profile corruption investigation involving the unauthorized use and exploitation of forest areas within the PT Inhutani V concession in Lampung Province.

The case, which centers on the activities of PT Pemuka Saksi Manis Indah (PSMI), was previously under the jurisdiction of the Lampung High Prosecutor’s Office (Kejati Lampung). The transition of the case to the central authority in Jakarta signals a strategic pivot by the Attorney General’s Junior Associate for Special Crimes (Jampidsus) to streamline evidence collection and address the systemic complexities of the alleged state losses.

1. Main Facts: The Scope of the Investigation

The investigation focuses on allegations that PT PSMI, a large-scale sugar and agribusiness entity, unlawfully utilized protected forest zones managed by the state-owned forestry enterprise, PT Inhutani V. According to preliminary findings by investigators, the corporation allegedly converted these forest lands into commercial sugarcane plantations without the requisite legal permits or adherence to land-use regulations.

Saiful Bahri Siregar, the Director of Investigation at Jampidsus, confirmed the takeover during a press briefing at the "Gedung Bundar" (The Round Building), the headquarters of the Attorney General’s special crimes unit, on Monday, September 7, 2026.

"We have officially taken over the investigation previously conducted by the Lampung High Prosecutor’s Office regarding the alleged criminal act of corruption in the use and exploitation of forest plantation areas by PT PSMI within the PT Inhutani V area," Saiful stated.

The central thrust of the case is the "unlawful" nature of the land conversion. Authorities assert that by planting sugarcane in areas designated as forestry zones, the company has bypassed regulatory frameworks, effectively depriving the state of legitimate forestry resources and potential tax/nontax revenue, thereby inflicting significant financial losses on the national treasury.

2. Chronology and Procedural Developments

The case has been in the public eye for several months as it moved through the regional legal system. Before the intervention of the Kejagung, the Lampung High Prosecutor’s Office had laid the groundwork by gathering evidence and summoning a wide array of stakeholders linked to the land concession and regional governance.

The Initial Phase (Kejati Lampung)

Under the regional prosecutor’s office, the investigation saw a flurry of activity, including the interrogation of high-profile figures. Notably, investigators examined the former Regent of Way Kanan, Raden Adipati Surya, and his father, as part of the witness list. These examinations were aimed at understanding the permitting processes and the administrative oversight that allowed PT PSMI to operate in the disputed zones.

The Escalation (Kejagung Intervention)

The transition to Kejagung marks a shift from regional inquiry to national-level prosecution. Following the handover, the Jampidsus team has accelerated the evidentiary process:

• Witness Testimony: Investigators have conducted comprehensive interviews with 47 witnesses to map out the chain of command and the decision-making process behind the unauthorized land use.
• Documentary Evidence: A systematic seizure of internal corporate documents and government administrative files has been carried out to trace the legal history of the land concessions.
• Financial Auditing: The Attorney General’s office has formally requested expert assistance to calculate the exact extent of the state’s financial loss—a critical step in elevating the case from an investigation into a formal indictment.

3. Supporting Data: The Complexity of Forestry Crimes

Forestry corruption in Indonesia is often characterized by the intersection of industrial expansion and the ambiguity of land-use status. The PT Inhutani V case is a textbook example of how large corporations often encroach upon state-managed lands under the guise of agricultural development.

The investigation into PT PSMI is not merely about the illegal planting of sugarcane; it is about the subversion of the "Forestry Area" status. Under Indonesian law, converting forest zones into plantations requires a complex sequence of "Borrow-to-Use" (Pinjam Pakai) permits. Investigators are currently scrutinizing whether PT PSMI bypassed these mandates or obtained them through fraudulent administrative channels.

The involvement of local political figures, such as the former regent, suggests that the case may involve "regulatory capture," where private interests influence local government policies to facilitate land encroachment. The shift to Kejagung is essential here, as the central government is often better equipped to withstand local political pressures that might otherwise stall such a complex, high-stakes investigation.

4. Official Responses and Legal Strategy

The Head of the Legal Information Center (Kapuspenkum) of the Attorney General’s Office, Anang Supriatna, emphasized that the decision to centralize the case was based on internal tactical considerations.

"The Attorney General’s investigators have their own reasons for taking over the handling of the PT PSMI case. We are currently constructing the criminal event in its entirety to ensure that we identify the individuals or parties most responsible for these actions," Anang explained.

When pressed on the lack of named suspects despite the long duration of the initial investigation, Anang remained composed. He noted that the transition period is being used to solidify the "legal construction" of the case. By focusing on the strength of the evidence first, the Kejagung aims to build an ironclad case that will withstand judicial scrutiny.

"Our priority is the assembly of evidence. We are currently in the process of auditing the state loss and confirming the witness statements. We expect to provide a more detailed update, including potential progress on the status of the investigation, by this coming Thursday," Anang added.

5. Broader Implications: Accountability in the Agribusiness Sector

The takeover of the PT PSMI case serves as a warning to other corporations operating in Indonesia’s vast plantation sectors. It highlights the Kejagung’s commitment to "Law Enforcement in the Forestry Sector," a key policy goal aimed at curbing the illegal depletion of state assets.

Deterrence and Reform

If the prosecution succeeds, this case could establish a significant legal precedent for how the state calculates damages in environmental and land-use corruption. By pursuing the corporation, the Kejagung is signaling that the era of "easy land conversion" is coming to an end.

Potential Political Fallout

The involvement of regional leaders in the witness pool implies that this case could have significant political repercussions in Lampung. As the investigators dig deeper into the permitting history, the potential for identifying further malfeasance by local bureaucrats remains high. This underscores the importance of the Kejagung’s involvement, as it shields the case from regional interference and ensures a uniform application of the law.

Future Outlook

As the nation watches for the announcement of the first suspects, the PT PSMI case remains a barometer for the efficacy of the Attorney General’s special crimes unit. With 47 witnesses already processed and expert calculations underway, the pressure is mounting for the Kejagung to move from investigation to formal charges.

For the agricultural industry in Indonesia, the outcome of this case will be a defining moment. It will dictate how corporations interact with state-owned forestry enterprises and whether the legal system is truly capable of holding industrial giants accountable for the unauthorized consumption of protected national resources.

As Anang Supriatna concluded, the focus remains clear: "The law must be upheld, and those responsible for the degradation of our national assets will be brought to justice."

This article is based on ongoing reports from the Office of the Attorney General. Further updates will be provided as the investigation progresses.