Breadcrumb

  • Home
  • Indonesian jailed for deforestation and the country's largest corruption case, so far.

Search form

Main navigation

  • Home

HOME | ALL NEWS

Indonesian jailed for deforestation and the country's largest corruption case, so far.

Monday, 27 February, 2023 - 03:03

In Medan, a shorter flight from Kuala Lumpur than Singapore, a Court has sentenced a 71 year old doyen of the Indonesian palm oil sector to 15 years in jail, ordered him to pay 2,000,000 million rupiah which he had avoided paying to the government and an additional 39,000,000 million in losses sustained by the government as a result of his actions.

Almost every year for decades, Malaysia has been shrouded in thick, toxic smoke (they call it "haze") for several weeks. The smoke comes from open burning in the forests and palm oil plantations of Sumatra, drifting across the narrows of the Malacca Straits on the prevailing winds. The ancient forests - and the newer plantations - are in areas rich in peat which, once alight, burns slowly but persistently. A peat fire is very difficult to put out. Efforts by governments on both sides of the Straits to discourage this clearing-by-fire approach have, until recently, had little effect.

The fires that burn forests destroy the habitat of one of the most prolific and diverse ecosystems anywhere in the world with, some estimate, up to 15% of the world's known species of plants, mammals and birds. No one seems to mention the insects, both flying and land-borne and reptiles and there are many as any visitor knows.

Deforestation has provided a vast amount of hardwood to the Indonesian furniture industry which has been thriving with both large factories and small workshops selling their product cheaply because wood has been cheap. Some saw the supply as infinite. Indonesia has the third most rainforests in the world.

The real cost of that timber has been the loss of more than half a million acres of rainforest - in the single year of 2021. That was during the pandemic and when the world was turning its back on palm oil.

Environmental pressure groups have long been united in their opposition to such large-scale deforestation and palm oil plantations have been a primary target in South East Asia. Sugar Cane has been the primary target in the Americas.

Darmadi has been a feature in corruption reports in Indonesia for almost 20 years. The Corruption Eradication Commission tried to secure a conviction on charges of having bribed the govenor of Riau Province to amend forestry regulations so that his company, PT Duta Palma, could operate. Damadi fled the country and defeated all attempts to extradite him but, as a 70 year old, returned voluntarily. He was promptly arrested.

The total financial orders made by the court were:
Fine: equivalent to USD65,000
Debt to government USD144 million
Losses suffered by the government: USD2,500 million.

He had been ordered to pay the total, the equivalent of some USD2,600 million, within a month of final sentencing or to serve an additional five years in default.

The judge decided against a formal life sentence in view of Darmadi's age saying that 15 years is a very serious sentence for a man of his age “Corruption is an extraordinary crime, and we need to set an example for others,” Judge Fahzal Hendri said. “That said, there are humanitarian factors here. There are no tricks, just humanitarian reasons for the sentence.”

Forbes has estimated Darmadi's identifiable nett worth as USD1,300 million, far short of that he has been ordered to repay.

The charges were for corruption, money laundering and other offences.

The "forestry" industry across South East Asia, particularly in Myanmar, Thailand, Malaysia and Indonesia has been mired in controversy over the connivance of local officials turning a blind eye to illegal logging for many years. Logging and corruption seem to be hand in hand with many companies pointing to orders made in their favour that fly in the face of official policy.

Indonesia has done great work in cleaning up its judiciary of late: not very long ago it was a significant part of the machinery of corruption acting as a buffer against prosecutions. Darmadi will appeal, he says, but the culture is changing and connections and money may not be enough to save him this time.

The conviction will bolster the spirits of prosecutors all over the region.

Footer menu

  • Weekly Digest (opens in new tab)
  • Images attribution (opens in new tab)
  • Corporate, privacy, intellectual property and access (opens in new tab)
  • Advertising and Recommendations (opens in new tab)
  • Promote your business (opens in new tab)
  • Enquiries (opens in new tab)


 

BOT AND SCRAPER ACCESS DENIED

 


 

Built with Drupal     |     Hosted by Siteground     |     Template by Alaa Haddad     

Design by Vortex Centrum Limited    |     Some services provided by Google Workspace    

Posters and other merch by ProjectLXX   |   Privacy and security services by Surfshark and Firetrust. 


Nothing in this website is intended to be or shall be taken as legal advice. 

You should always seek advice from a practitioner experienced in this area. 


Everything on this website is copyright Nigel Morris-Cotterill and/or Vortex Centrum Limited for itself or one of its business units. No downloading, printing or other means of replicating or reusing is permitted. In particular, all bot access is denied and all scraping of content will result in the legal action set forth in the terms and conditions in this site. For legal, cookies and privacy see vortexcentrum.com.

Copyright 1999- © 2026 Vortex Centrum Limited - All rights reserved. Bot access denied.