BJU Group Executive Sentenced to 8 Years in Prison for LPEI Corruption Case
Jakarta - Hendarto, a director and beneficial owner of several companies within the Bara Jaya Utama (BJU) Group, has been sentenced to eight years in prison after being found guilty of corruption in a case involving the provision of financing facilities by the Indonesian Export Financing Institution (LPEI).
“The court declares the defendant legally and convincingly proven guilty of committing a criminal act of corruption jointly and continuously, as charged in the first indictment,” said Presiding Judge Brelly Yuniar Dien while reading the verdict at the Jakarta Corruption Court on Monday.
The panel of judges stated Hendarto was proven to have enriched himself by Rp1.06 trillion and US$49.88 million, resulting in state financial losses of the same amount.
In addition to the prison sentence, Hendarto was fined Rp500 million, with the provision that if unpaid, it will be replaced by 140 days of confinement.
The judges also imposed an additional penalty in the form of a replacement payment of Rp1.06 trillion and US$49.88 million. If not paid, this penalty will be substituted with a seven-year prison term.
The judge explained that the replacement payment value had already accounted for approximately Rp3.78 billion in cash deposited into a Corruption Eradication Commission (KPK) holding account and assets seized by investigators.
In this case, Hendarto was found to have committed corruption together with several LPEI officials whose cases are being handled separately, namely Kukuh Wirawan, Ngalim Sawega, Dwi Wahyudi, Basuki Setyadjid, Arif Setiawan, and Omar Baginda Pane.
According to the panel of judges, one of the unlawful acts committed was the use of LPEI financing facilities to fund plantation businesses located in protected forest and conservation areas.
Besides enriching himself, Hendarto’s actions were also proven to have enriched other parties, including Dwi Wahyudi by Rp7 billion and US$227,000, Arif Setiawan by US$50,000, and Kukuh Wirawan by Rp500 million and US$120,000.
For his actions, Hendarto was found guilty of violating corruption provisions as stipulated in the National Criminal Code and the Corruption Eradication Law.
In their considerations, the judges cited aggravating factors, including that the defendant did not support efforts to eradicate corruption, caused enormous state losses, and used a portion of the corruption proceeds for gambling and purchasing luxury goods.
Mitigating factors included Hendarto’s current illness, his lack of prior convictions, and his cooperative attitude during the trial.
The verdict matched the public prosecutor’s demand of an eight-year prison sentence and a Rp500 million fine, with a subsidiary of 140 days of confinement.
However, the replacement payment value imposed by the judges was lower than the prosecutor’s demand of Rp1.6 trillion and US$14.95 million.