The Attorney General's Office Investigates Corruption in the Misuse of Industrial Salt Imports

The Attorney General's Office (Kejagung) questioned former Minister of Marine Affairs and Fisheries (KKP) Sri Pudjiastuti on Friday, October 7, 2022, regarding alleged corruption in industrial salt imports.

Attorney General Sanitiar Burhanuddin stated some time ago that the Ministry of Trade issued import permits for industrial salt to PT MTS, PT SM, and PT UI without verification, leading to excessive imports.

“There were 21 salt importing companies that received import quotas for industrial salt, totaling 3.77 million tons with a value of Rp2.05 trillion,” he said, as reported by CNN Indonesia (June 27, 2022).

On September 29, 2022, the Kejagung conducted a search and seizure related to the alleged misuse of industrial salt imports sold into the market as table salt. This practice caused local salt to lose out in competition due to the lower price of imported salt.

The Ministry of Trade granted permits for industrial salt imports without considering national supply and stock levels, resulting in excessive imports. Due to the abundance of imported industrial salt, importers released it into the market as table salt, impacting local salt, mostly produced by MSMEs (Micro, Small, and Medium Enterprises).

According to data from the Central Statistics Agency (BPS), the volume of industrial salt imports amounted to 2.88 million tons, valued at US$90.59 billion or approximately Rp1.3 trillion (at an exchange rate of Rp14,500 per US dollar) in 2018.

This import volume was the highest in the last six years, as shown in the graph. Industrial salt imports in 2022 are targeted at 3 million tons.

Based on KKP data, national salt needs are 4 million tons. This comprises 3.2 million tons of industrial salt and 800,000 tons of table salt.

According to KKP's research and development analysis, national salt production this year only reached approximately 559,860 tons. This makes it the lowest level since 2017, increasing reliance on salt imports.