Dwi Wahyudi claims he no longer worked at LPEI when PT TI's credit turned bad

Dwi Wahyudi, Managing Director I of the Indonesian Export Financing Institution (LPEI) for the 2009–2018 period, has claimed that he was no longer working at LPEI when payment defaults occurred on loans to PT Tebo Indah (TI) and PT Pratama Agro Sawit (PAS).

Giving testimony as a defendant in the LPEI corruption case hearing at the Corruption Court in Central Jakarta District Court on Thursday, Dwi said he only served at LPEI until December 2018.

“From 2016 to 2018 all payments were smooth, with Collectibility 1 status. Payment irregularities only began in 2020,” he said.

Dwi stressed that the entire credit approval process up to the end of his tenure had complied with applicable governance procedures and was in sound financial condition.

As a government institution tasked with supporting national export growth, he explained that the financing proposal process at LPEI was carried out in a tiered and professional manner, starting from the business unit, the risk management unit, and culminating in the Financing Decision Committee (KPP).

He said that during the period from 2016 until the end of his service at LPEI in December 2018, the financing facilities extended to PT Tebo Indah and PT Pratama Agro Sawit were performing smoothly with Collectibility 1 status.

In fact, at the initial disbursement stage, he continued, the value of fixed assets used as collateral was far greater than the credit value.

Dwi argued that the dynamics of debtor payments began to stall in September 2020, after he no longer held office at LPEI.

According to him, the potential for credit rehabilitation had opened up through the interest of a strategic investor wishing to carry out restructuring, before the management of the debtors was transferred to another party which later triggered payment arrears.

Regarding the validity of supporting financing data, he said LPEI relied fully on the results of independent assessments from a Public Accounting Firm (KAP) and a Public Appraisal Services Office (KJPP).

If there were errors in that data, he continued, the KJPP and KAP could also be taken to court.

Meanwhile, regarding the additional guarantee instrument (LoU), Dwi said the document was a form of financial risk mitigation effort common in banking practice to provide additional assurance for creditors.

He said the use of the LoU was discussed by the business unit and risk divisions as a complementary guarantee for the facilities provided.

The eight defendants are Andi Maulana Adjie, Head of the Sharia Financing Division Department of LPEI for the 2011–2017 period; Intan Apriadi, Head of the Sharia Financing Division I Department for the 2007–2016 period; Komaruzzaman, Head of the Sharia Financing Division II Department for the 2011–2016 period; and Gamaginta, Head of the Sharia Financing Division I Department of LPEI for the 2017–2018 period.

Also named are Dwi Wahyudi, Managing Director I of LPEI for the 2009–2018 period; Ryan Wahyudi, Sharia Financing I Relationship Manager at the Sharia Financing I Department of the Sharia Financing Division of LPEI for the 2015–2018 period; Liu Raymond, Director of PT Tebo Indah (TI); and Handoko Limaho, beneficial owner of PT TI and PT Pratama Agro Sawit.

The defendants are alleged to have participated in several interconnected criminal acts considered as one continuing unlawful act that enriched defendants Handoko Limaho and Liu Raymond, causing losses to state finances or the state economy.

The unlawful acts allegedly began when Handoko together with Liu submitted a financing facility application.

However, the application was accompanied by a feasibility study document and an asset valuation report from the Public Appraisal Services Office (KJPP) with a planted oil palm land area that did not match the actual conditions.

For their actions, the eight defendants are charged with violating Article 603 or Article 604 in conjunction with Article 20 letter c of the National Criminal Code in conjunction with Article 8 of Law Number 31 of 1999 as amended by Law Number 20 of 2001 concerning the Eradication of Criminal Acts of Corruption.