Judge determines LPEI corruption case caused Rp992.82 billion state loss

The Panel of Judges has determined that the alleged corruption case involving national export financing by the Indonesia Export Financing Institution (LPEI) between 2015 and 2023 has caused state financial losses amounting to Rp992.82 billion.

Judge Hiashinta Fransiska Manalu stated that the state losses occurred due to the unlawful provision of financing facilities by LPEI to PT Tebo Indah (TI) and PT Pratably Agro Sawit (PAS).

“The provision of financing facilities was carried out through several types of credit,” said Judge Hiashinta during the verdict reading at the Corruption Court of the Central Jakarta District Court on Monday night.

She explained that it has been quantitatively proven that PT TI and PT PAS were ineligible for financing because the coverage ratios of both companies indicated an inability to repay the provided credit, including both principal and interest or profit margins. Consequently, PT TI and PT PAS were deemed not entitled to the funds disbursed by LPEI.

Should any subsequent payments be made by PT TI and PT PAS to LPEI, Judge Hiashinta emphasised that this is merely a logical consequence of the obligations arising from the financing and working capital agreements. However, this does not negate the unlawful acts in providing the financing and working capital, which have caused state losses.

The defendants included Komaruzzaman, Head of the Sharia Financing Division II Department for the 2011-2016 period, and Gamaginta, Head of the Sharia Financing Division I Department for the 2017-2018 period, among others.

The four individuals were sentenced to six years in prison and a fine of Rp200 million each, with a subsidiary prison sentence of 90 days if the fine is not paid, after being proven to have participated in the corruption case.

Due to the unlawful actions of these four former LPEI officials, PT TI and PT PAS were enriched, thereby causing state losses of Rp992.82 billion. As a result, the four defendants were found guilty of violating Article 603 in conjunction with Article 20 letter c and Article 126 paragraph (1) of the National Criminal Code.