Hashim goes on trial for exceeding loan limit

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