Indonesian Minister Sentenced to Death for Corruption, Assets Seized

A massive corruption case occurred in Indonesia decades ago, leading to a death sentence for Jusuf Muda Dalam, the Minister for Central Bank Affairs from 1963 to 1966. Reports on the ‘Anak Penyamun di Sarang Perawan’ (JMD Scandal) in 1966 detailed his involvement in four criminal matters. One involved permitting imports under a Deferred Payment scheme to certain import companies, a postponement of foreign credit payments totalling US$270 million. The second case concerned JMD’s role in granting credit to specific companies, which resulted in a state deficit. He was also accused of embezzling state funds or revolutionary funds amounting to Rp 97.3 billion, and finally, of smuggling weapons without a permit from Czechoslovakia. The corrupt proceeds were used for personal gain, including purchasing houses, land, jewellery, cars, and financing women. At least 25 women were reported to have enjoyed the fruits of the corruption, despite JMD already having six wives. The scandal sparked public outrage, particularly as the domestic economy was deteriorating with skyrocketing inflation and soaring food prices. The case was brought to court on 30 August 1966. The trial, presided over by Chief Judge Jakim Made Labde, featured numerous witnesses to trace the flow of funds. The courtroom was constantly packed as the proceedings drew immense public attention. The newspaper Mertjusuar noted the atmosphere was almost always rowdy. JMD reportedly evaded various accusations, only not disputing the fact that he had six wives. ‘Your Honour surely understands why I was in a hurry to marry six times, after seeing my wives who have these beautiful faces,’ JMD told the panel of judges. After a series of hearings, the panel delivered its verdict on 8 September 1966. He was sentenced to death for proven abuse of office in large-scale corruption, which caused state losses amounting to billions of rupiah. JMD’s political background was also a factor in the decision. ‘With full conviction and a sense of responsibility to God Almighty, I hereby sentence you to death!’ asserted Chief Judge Made Labde. The judge also assessed that JMD had a communist background, evident in internal policies at the institution he led, such as mandating the singing of the Internationale, replacing the term ‘employee’ with ‘labourer’, and supporting the idea of arming workers and peasants. His actions were described as exactly mirroring those of the banned Indonesian Communist Party. In addition to the death sentence, the judge announced the seizure of four luxury cars, six houses, and other land and buildings. JMD filed an appeal to the Supreme Court on 8 April 1967, but it was rejected and the death sentence upheld. However, the execution was never carried out, as JMD died in prison from tetanus in September 1976.