Hashim goes on trial for exceeding loan limit

JAKARTA: Businessman Hashim Djojohadikusumo, a former president commissioner of the now-defunct Bank Industri, went on trial on Tuesday for an alleged banking law violation.

The defendant, along with the bank's former president director Oemarjoedi, were tried at the Central Jakarta District Court. Both the defendants are under city arrest.

Hashim, 48, is a younger brother of former president Soeharto' son-in-law Prabowo Subianto.

Prosecutor Abdul Wahab Arief charged both defendants with violating Article 11 paragraph 3 and 4 of Law No. 7/1992 on banking.

According to the six-page indictment, the defendants gave approval for Bank Industri to disburse Rp 4 billion credits to private company PT Harang Ganjang, an affiliated company of the bank, in 1993 and 1994.

The central bank warned Bank Industri for exceeding the legal lending limit, but the bank ignored it, resulting in its liquidation in Nov. 1997, according to the indictment.

Hashim's lawyer, Hotman Paris Hutapea, and Oemarjoedi's lawyer Soeprijadi, asked the court to dismiss the case because the indictment was obscure since it lacked detail.

Presiding judge Rusdy As'ad adjourned the hearing until next Friday. -- JP