Indonesian minister sentenced to death for corruption, all assets seized

Jusuf Muda Dalam (JMD) served as Minister of Central Banking Affairs from 1963 to 1966 in the Working Cabinet IV and Dwikora Cabinet under President Soekarno (1945-1966). During his tenure, he was responsible for managing state finances and formulating banking policies. However, weak oversight at the time created ample opportunities for corruption.

An August 1966 scandal revealed his involvement, as he abused his authority to enrich himself and others.

Referring to a case report titled ‘Anak Penyamun di Sarang Perawan (JMD Scandal)’ (1966), JMD was implicated in four offences.

First, JMD granted import permits through a Deferred Payment scheme to import companies. This scheme deferred foreign credit payments for a specified period, totalling $270 million.

Second, JMD extended loans to specific companies, contributing to a ballooning national deficit. Third, he embezzled state funds or revolutionary funds amounting to Rp97.3 billion. Fourth, he smuggled weapons without permission from Czechoslovakia.

The proceeds from his illicit activities were used for personal indulgence. He purchased houses, land, jewellery, cars, and distributed funds to numerous women—25 in total—despite already having six wives.

The scandal sparked public outrage, especially as Indonesia’s economy was deteriorating. Inflation soared and food prices surged. Imagine, amid the people’s suffering, a high-ranking official like Jusuf Muda Dalam living lavishly from corruption.

Death Sentence

On 30 August 1966, JMD’s case went to trial. Presided over by Chief Judge Made Labde with two associate judges, the panel summoned numerous witnesses to trace the misused funds.

Each trial session drew massive public attention. Courtrooms were packed, often erupting in cheers when witnesses or the defendant testified. The Mertjusuar newspaper (3 September 1966) noted the proceedings were almost always chaotic.

JMD consistently dodged various charges, except for admitting to his multiple marriages—six in total.

‘Your Honours must understand why I rushed into marriage six times after seeing my wives’ beautiful faces,’ JMD told the panel.

After days of proceedings, the panel delivered its verdict on 8 September 1966.

‘With full confidence and responsibility to Almighty God, I hereby sentence you to death!’ declared Chief Judge Made Labde, as reported by Mertjusuar (10 September 1966).

The sentence was based on JMD’s proven abuse of his position as Minister of Central Banking Affairs for large-scale corruption, causing billions in state losses. His political background also aggravated the case.

The court deemed JMD’s communist affiliations evident in internal policies, such as mandating the singing of ‘The Internationale’, replacing ‘employees’ with ‘workers’, and supporting arming labourers and farmers. The judges viewed this as aligned with the banned Indonesian Communist Party (PKI) of 1966.

The judge’s verdict also included seizure of all assets: four luxury cars, six houses, land, and other properties. However, some deemed the sentence too lenient. PBNU Chairman KH Moch Dahlan even made harsh comments.

‘JMD’s death sentence should not be just once, but three times, or hanged publicly before a crowd,’ he told Mertjusuar (15 September 1966).

Unhappy with the verdict, JMD appealed to the Supreme Court (MA) on 8 April 1967, but it was rejected, upholding the death sentence.

Nevertheless, the execution never took place. In September 1976, before facing the firing squad, JMD died in prison from tetanus. To this day, he remains Indonesia’s first and only convicted corruptionist sentenced to death.