Karawang District Attorney Detains Three Suspects in Alleged Mortgage Corruption Scandal
The Karawang District Attorney’s Office in West Java has detained three suspects involved in the alleged corruption of home ownership loan (KPR) distributions, which has resulted in state losses of around Rp237 billion.
“Based on the results of the investigation, investigators have named three suspects. All three are members of the leadership of PT BAS (Bumi Arta Sedayu), which is a housing developer,” said the Head of the Karawang District Attorney’s Office, Dedy Irwan Virantama, in Karawang on Friday.
The three suspects, identified by the initials VY, OH, and HH, were immediately detained at the Karawang Correctional Institution after being named suspects.
Dedy stated that the designation of suspects and subsequent detention occurred after investigators underwent a process of examination and the collection of evidence.
“We have examined 271 witnesses, including expert witnesses. We have also collected 495 pieces of evidence, which include land certificate documents, electronic documents, and physical building documents,” he said.
PT BAS is a housing developer that received credit facilities from a state-owned bank for the construction of the Citra Swarna Grande and Kartika Residence housing estates in the Klari area, Karawang Regency.
The Citra Swarna Grande and Kartika Residence projects, developed by PT BAS between 2021 and 2024, are indicated to involve fictitious loans.
These indications stem from alleged systematic manipulation in KPR applications, ranging from the use of ‘jockeys’ or identity lending, data manipulation, to the creation of forged documents to approve the loans.
It is alleged that these practices were carried out by the developer through a special team handling KPR applications.
According to the State Financial Loss Calculation Report from the Audit Board of the Republic of Indonesia (BPK RI), the temporary state financial loss has reached Rp237,078,338,982.50, involving 445 debtors.
Dedy noted that a suspect with the initials HJ had been duly summoned but failed to appear at the scheduled time. The Karawang District Attorney’s Office will issue a further summons for the individual.
The suspects are charged under Article 603 in conjunction with Article 20 letter a or c of Law Number 1 of 2023 regarding the Criminal Code, in conjunction with Article 18 of Law Number 31 of 1999 regarding the Eradication of Corruption Crimes, as amended by Law Number 20 of 2001.
The Karawang District Attorney’s Office is still investigating the involvement of other parties allegedly responsible for the case, including banking officials suspected of irregularities in the distribution of KPR loans.
“Even though suspects have been named, the investigation process is ongoing, and there is a possibility of additional suspects and an increase in the number of detainees,” said Dedy.