Indonesian Political, Business & Finance News

After 6-Year Sentence, Bengawan Kamto Files Appeal

| | Source: MEDIA_INDONESIA Translated from Indonesian | Legal
After 6-Year Sentence, Bengawan Kamto Files Appeal
Image: MEDIA_INDONESIA

The family of Jambi businessman Bengawan Kamto has filed an appeal against the verdict of the Corruption Court (Tipikor) in Jambi, which sentenced him to six years in prison in a case involving investment credit for PT Prosympac Agro Lestari (PAL). The family considers the matter a business dispute that should have been resolved through civil law mechanisms.

In addition to the prison sentence, the panel of judges also imposed a fine of Rp200 million and ordered the payment of Rp80 billion in restitution, to be covered by the auction of assets belonging to PT PAL’s palm oil mill.

Bengawan Kamto’s legal counsel, Ilham Kurniawan Dartias, stated that his client had no criminal intent (mens rea) in the case. According to him, Bengawan Kamto’s objective from the outset was to run a business and maintain the company’s operations.

‘We have filed an appeal against the six-year prison sentence handed down by the Jambi Corruption Court,’ Ilham said in a statement on Thursday (17/6).

He highlighted a dissenting opinion from the presiding judge, Annisa Brigestriana, who found no element of malicious intent or evidence that Bengawan Kamto enriched himself.

According to Ilham, during the company’s rescue efforts, Bengawan Kamto disbursed approximately Rp61 billion to support PT PAL’s operations and meet obligations to the bank. Additionally, various guarantees were provided, including personal and corporate guarantees, an apartment, and the main collateral consisting of the factory, land, and company machinery.

The legal team also noted that the collateral value of PT PAL at the time of the auction submission in 2021 was assessed at more than Rp126 billion by the Office of Public Appraisal Services (KJPP).

During the trial, business law expert Professor Nindyo Pramono from Gadjah Mada University testified that non-performing loans and the Suspension of Debt Payment Obligations (PKPU) process, which resulted in homologation, are part of business risks and cannot automatically be categorised as corruption.

The defence also referred to the homologation decision of the Medan Commercial Court No. 39/Pdt.Sus-PKPU/2021/PN Medan dated 12 July 2022, which remains valid until 2027. Ilham stated that this ruling is significant because it demonstrates that a debt resolution mechanism has been pursued by the company. He added that the criminalisation of business matters could potentially create concern among business actors and affect the investment climate in Jambi.

Beyond the plantation sector, Bengawan Kamto is known to have automotive and hospitality businesses in Jambi, which reportedly employ thousands of workers. The family hopes the appeal process will provide legal certainty while taking into account all the facts revealed during the trial.

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