Indonesian Political, Business & Finance News

Former Telkom GM Faces 14-Year Prison Sentence in Fictitious Financing Case

| Source: ANTARA_ID Translated from Indonesian | Legal
Former Telkom GM Faces 14-Year Prison Sentence in Fictitious Financing Case
Image: ANTARA_ID

Jakarta — A former General Manager of Enterprise Segmen Financial Management Service at PT Telkom between 2017 and 2020, August Hoth Mercyon Purba, faces prosecution with a recommended sentence of 14 years’ imprisonment in connection with alleged fictitious financing offences.

The Attorney General’s office, represented by prosecutor Muhammad Fadil Paramajeng, has requested that August be found guilty of corruption and sentenced accordingly. The charges were formally presented at the Corruption Court at the Central Jakarta District Court on Monday.

Beyond imprisonment, prosecutors have sought a fine of Rp750 million with a subsidiary sentence of 165 days’ imprisonment, plus restitution of Rp980 million with a subsidiary sentence of seven years’ imprisonment. Prosecutors cited Purba’s obstruction of the government’s anti-corruption efforts as an aggravating factor, whilst noting his lack of prior convictions and expressions of remorse as mitigating circumstances.

The prosecution has simultaneously brought charges against ten other defendants, including Herman Maulana (Account Manager at Telkom, 2015-2017), Alam Hono (Executive Account Manager at PT Infomedia Nusantara, 2016-2018), and various company directors including Andi Imansyah Mufti, Denny Tannudjaya, Eddy Fitra, Kamaruddin Ibrahim, Nurhandayanto, Oei Edward Wijaya, RR Dewi Palupi Kentjanasari, and Rudi Irawan.

Sentencing recommendations for the remaining defendants range from 7 to 15 years’ imprisonment. Herman Maulana faces 15 years with Rp4.53 billion in restitution; Alam Hono faces 14 years with Rp7.29 billion; Andi Imansyah Mufti faces 10 years with Rp8.74 billion; Denny Tannudjaya faces 12 years with Rp10.7 billion; Eddy Fitra faces 12 years with Rp38.25 billion; Kamaruddin Ibrahim faces 9 years with Rp7.95 billion; Nurhandayanto faces 13 years with Rp46.85 billion; Oei Edward Wijaya faces 8 years with Rp39.87 billion; RR Dewi Palupi Kentjanasari faces 7 years with Rp40 million; and Rudi Irawan faces 11 years with Rp39.57 billion in restitution.

All defendants face additional fines of Rp750 million each, with subsidiary imprisonment of 165 days if payment cannot be made.

The eleven defendants are accused of violating anti-corruption legislation whilst causing aggregate state losses of Rp464.93 billion. The scheme, operational between 2016 and 2018, involved eleven private entities that benefited from the fraudulent arrangements.

The case originated when Telkom’s Enterprise Service Division initiated new product development in January 2016 to identify fresh project opportunities and expand the customer base to meet business performance targets. To accomplish sales objectives, a financing scheme was developed ostensibly involving multiple procedural stages, purporting to channel Telkom financing to private enterprises. However, the entire procurement process was fabricated; documentation was created solely to satisfy administrative requirements enabling Telkom to disburse funds through intermediary companies to meet customer financing requirements, ultimately serving only to achieve the division’s sales performance targets.

The defendants face charges under Indonesia’s corruption statute and general criminal law provisions regarding conspiracy and fraudulent conduct.

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