Indonesia : Jakarta Food Company CEO Named Suspect in Rice Mislabeling Probe
Jakarta’s city-owned food company CEO, Karyawan Gunarso, is under investigation for selling standard rice as premium. Two other officials are also suspects. Police found mislabeling, weight discrepancies, and pricing violations. The case could lead to charges under consumer protection and anti-money laundering laws, with penalties up to 20 years in prison.
Karyawan Gunarso, who heads the city-owned company specializing in packaged food commodities, primarily rice, is under investigation for allegedly distributing substandard rice labeled and sold as premium-grade.
The National Police’s Food Task Force (Satgas Pangan) is leading the investigation, which has examined dozens of rice brands for potential mislabeling and price manipulation, and interrogated multiple witnesses.
Two other suspects have been identified as Operational Director Ronny Lisapaly and a quality control section head referred to by the initials RP.
“All three suspects will be summoned for further questioning,” said Brigadier General Helfi Assegaf, head of the Food Task Force.
He called on the suspects to cooperate fully with investigators, underscoring the police’s commitment to cracking down on food-related crimes that threaten national food security.
“The National Police will not hesitate to take firm action against business operators who engage in fraudulent practices that harm consumers,” Helfi said. “We also urge the public to carefully inspect rice packaging — ensuring it meets Indonesian National Standards (SNI), is clearly categorized, and accurately labeled with the net weight.”
Preliminary findings revealed that several rice products labeled as “premium” were in fact of standard quality. Investigators also discovered discrepancies between the stated and actual net weight of some packages, along with pricing violations that exceeded government-imposed ceilings.
Authorities plan to seize rice processing machinery at Food Station’s facility and consult expert witnesses to evaluate the company’s corporate liability, the officer said. The investigation will also include coordination with the Financial Transaction Reports and Analysis Center (PPATK) to track the company’s financial activities.
The three suspects face charges under Indonesia’s 1999 Consumer Protection Law and the 2010 Anti-Money Laundering Law. If convicted, they could face up to 20 years in prison and fines of up to Rp 10 billion (approximately $615,000).
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Source : Jakarta Globe
