Indonesian Minister Sentenced to Death for Corruption, Assets Seized
Jakarta, CNBC Indonesia - Indonesian history records a minister being sentenced to death after being proven guilty in a massive corruption case. The figure is Jusuf Muda Dalam, who served as Minister for Central Bank Affairs from 1963 to 1966.
Jusuf Muda Dalam was an economic figure with significant influence. Before becoming a minister, he had a career in banking and was entrusted with leading central bank affairs following the nationalisation of various financial institutions.
A report on the case, known as the ‘Anak Penyamun di Sarang Perawan’ (Bandit’s Child in the Virgin’s Nest) scandal in 1966, stated that JMD was implicated in four matters. One of these was approving imports under a Deferred Payment scheme for an importing company. The scheme involved postponing foreign credit payments for a certain period, totalling US$270 million.
The second case involved JMD’s role in granting credit to certain companies. It turned out that this approval caused a state deficit. Thirdly, JMD was accused of embezzling state funds or revolutionary funds amounting to Rp 97.3 billion. Lastly, he was said to have smuggled weapons without a permit from Czechoslovakia.
The corruption proceeds were used for personal gain, including purchasing houses, land, jewellery, cars, and women. At least 25 women were reported to have enjoyed the proceeds of corruption, even though JMD already had six wives.
Clearly, the scandal sparked public outrage. This was compounded by the fact that the country’s economic condition was deteriorating at the time, with soaring inflation and skyrocketing food prices.
Sentenced to Death
JMD’s case was brought to court on 30 August 1966. The trial, presided over by Chief Judge Jakim Made Labde, presented numerous witnesses to trace the flow of funds. The courtroom was constantly packed as the trial drew significant public attention. The daily newspaper Mertjusuar (3 September 1966) noted that the atmosphere in the courtroom was almost always rowdy.
JMD was reported to have continuously denied all accusations. The only thing he did not deny was having six wives. ‘Your Honour, you would surely understand why I rushed to marry six times, after seeing the beautiful faces of my wives,’ JMD reportedly told the panel of judges.
After a series of hearings, the panel read out its decision on JMD on 8 September 1966. He was sentenced to death after being found guilty of abusing his position for large-scale corruption. The case also 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!’ declared Chief Judge Made Labde, as quoted from the Mertjusuar newspaper (10 September 1966).
The judge also considered JMD to have a communist background, evident from the internal policies at the institution he led. These included requiring employees to sing the Internationale, replacing the term ‘employee’ with ‘labourer’, and supporting the idea of arming workers and farmers. What JMD did was considered exactly what the Indonesian Communist Party, which was banned in 1966, had done.
In addition to the death sentence, the judge also announced the seizure of four luxury cars, six houses, and other land and buildings.
JMD subsequently filed an appeal to the Supreme Court on 8 April 1967. However, the Supreme Court rejected the appeal and upheld the death sentence. The execution was never carried out, however, as JMD died in prison from tetanus in September 1976.