Eight Defendants Face Charges Over Alleged Rp992.82 Billion LPEI Corruption Scandal
Eight defendants in the alleged corruption case involving national export financing at the Export Import Bank of Indonesia (LPEI) between 2015 and 2020 officially underwent indictment reading at the Corruption Court of the Central Jakarta District Court on Monday (18/5). The case is alleged to have caused state financial losses amounting to Rp992.82 billion.
The Public Prosecutor from the Attorney General’s Office, Arif Darmawan Wiratama, stated that the defendants committed the criminal acts jointly and continuously. These unlawful acts are reported to have enriched private parties, specifically defendants Handoko Limaho and Liu Raymond.
In the indictment, the prosecution revealed that the corruption began when Handoko Limaho and Liu Raymond applied for financing facilities by attaching documents that did not reflect actual field conditions. They utilised asset valuation reports from a Public Appraisal Services Office (KJPP) that manipulated the area of palm oil plantations.
Furthermore, the defendants used fiduciary deed documents for inventory and accounts receivable that did not align with audited financial statements. “They applied for the disbursement of financing facilities using supporting documents consisting of fictitious invoices and contracts,” the prosecutor stated during the trial.
The prosecution also highlighted the roles of LPEI officials acting as proposers and financing committee members. They are accused of failing to conduct merchandise inspections or physical examinations of the goods used as collateral.
More critically, the financing committee proceeded with approvals even though the debtors failed to provide legally notarised cash deficit guarantees. The collateral accepted instead consisted of Letters of Undertaking (LoU) which lacked executory power.
Due to their actions, the eight defendants are charged with violating Articles 603 or 604 in conjunction with Article 20 letter c of the National Criminal Code, in relation to Article 8 of the Law on the Eradication of Corruption Crimes. The trial will continue with the examination of witnesses next week.