Tue, 08 Sep 1998

Kim freed from all charges in bank scam case

JAKARTA (JP): The East Jakarta District Court cleared businessman Kim Johanes Mulia on Monday of all charges of complicity in a scam over promissory notes worth Rp 150 billion (US$13.6 million).

Presiding judge M. Thoyib said Kim, president of garment manufacturer PT Detta Marina, was not guilty of involvement in the forgery of the promissory notes, which were endorsed by Bank Arta Prima.

"The panel of judges, after hearing several witnesses' testimonies, also considered that the case was not a criminal case. It's a civil one," Thoyib said.

He said the court ordered the prosecutor's office to return to Kim evidence in the form of cash of Rp 2.5 billion.

Kim, dressed in traditional batik dress, looked happy upon hearing the judge's decision and embraced his defense team, led by noted lawyer Adnan Buyung Nasution.

Nasution said he had always been confident his client would be exonerated of the charges.

"My client is not guilty. It's just a business matter."

Prosecutor Sugiyanto said he was still considering whether to appeal the verdict.

Sugiyanto asked the court earlier to sentence Kim to 10 months in prison because he was guilty of violating Article 264 of the Criminal Code, carrying maximum punishment of eight years in jail.

The prosecutor said Kim had suggested to Bank Arta Prima's owner, Made Oka Masagung, that the latter forge promissory notes from January to July 1995 in an effort to discourage investors from taking over the bank.

Sugiyanto said Kim and Masagung set up a company, PT Jagata Prima, to take over the bank and the debts of the bank's holding company, the Gunung Agung Group, worth Rp 174 billion.

Kim demanded the group's debts be converted into promissory notes, he said.

Sugiyanto said some of the endorsed Rp 150 billion notes were used by the defendant to pay off Detta Marina's debts to state Bank Pembangunan Indonesia (Bapindo).

When Bapindo tried to cash the promissory notes, Bank Arta Prima rejected the claims on the grounds it had no funds, he said.

Bank Arta Prima was eventually taken over by the Bank Artha Graha Group.

The new owner reported Kim, Masagung and other former executives of the bank to the police in July last year due to Gunung Agung Group's unpaid debts.

The defendants were released from detention when their trials started at the end of last year.

Masagung was exonerated of all charges against him by the South Jakarta District Court two months ago. He had reportedly settled all the bank's debts.

The West Jakarta District Court also acquitted the bank's other executives, including Chalid Aini, Husni Ali Thayib, and Marcel Maulana, of all charges. Bank commissioners Albert M. Sagala and Nantho Susanto are still on trial at the Central Jakarta District Court. (jun)