Widjanarko Puspoyo is the latest former official to be jailed as part of a high-profile government campaign to tackle endemic corruption in the Southeast Asian country.

Judges at the South Jakarta district court convicted Puspoyo, who headed the state logistics agency known as Bulog until his arrest last year, over graft linked to rice exports to South Africa in 2005, the court official said.

Citing the court verdict, the state Antara news agency said Puspoyo was found guilty of selling rice at a cheaper price than had been determined by a decree by the finance minister, causing 78.3 billion rupiah (S$12 million) in losses to the state.

Puspoyo said he would appeal, Antara reported.

He was cleared of initial corruption charges related to the import of cattle from Australia in 2001.

Bulog was established in 1967 to strengthen Indonesia's food supplies and distribution, but grew into a massive monopoly with huge powers during the era of the late former President Suharto.

Its powers were reduced after a pact with the International Monetary Fund following the Asian financial crisis in the late 1990s.

Today, Bulog's main function is to stabilise prices of commodities such as sugar and rice, but its powers to buy stocks are limited.

Experts consistently rate Indonesia as among the world's most corrupt nations and foreign executives cite graft as a key factor hurting attempts to attract badly needed investment.

President Susilo Bambang Yudhoyono won Indonesia's first direct presidential vote in October 2004 on a pledge to end corruption.

Since Dr Yudhoyono's anti-graft campaign started, officials ranging from governors and former ministers have been jailed on corruption charges.

But some critics argue the anti-graft campaign has not taken on some powerful vested interests. -- REUTERS