LPEI Corruption: BJU Group Boss Hendarto Sentenced to 8 Years in Prison

The Jakarta Central District Court’s Corruption Court has sentenced Hendarto, Director and beneficial owner of Bara Jaya Utama (BJU) Group, to eight years in prison. Hendarto was found legally and convincingly guilty of committing corruption in connection with the provision of credit facilities by the Indonesian Export Financing Agency (LPEI).

The verdict was read by Chief Judge Brelly Yuniar Dien on Monday. In addition to the prison sentence, the defendant was ordered to pay a fine of Rp500 million, with a subsidiary of 140 days’ confinement.

“The defendant Hendarto has been legally and convincingly proven to have committed corruption jointly and continuously,” Judge Brelly stated during the trial.

In its considerations, the panel of judges noted that Hendarto had enriched himself by Rp1.06 trillion and 49.88 million US dollars. This amount also constitutes the state financial loss in the case. Consequently, the judges imposed an additional penalty of a replacement payment equal to that sum, with a threat of an additional seven years’ imprisonment if not paid.

The court revealed that the corruption was carried out together with several former LPEI officials, including former Executive Director Ngalim Sawega and other former managing directors. The modus operandi involved using LPEI financing facilities for plantation businesses located in protected forest and conservation areas.

Aggravating factors for the sentence included the defendant’s use of part of the corruption proceeds for gambling and purchasing luxury goods. Mitigating factors were the defendant’s ill health and his cooperative attitude during the trial.

The eight-year prison sentence matched the demand of the public prosecutor. However, the panel of judges adjusted the amount of the replacement payment obligation by deducting Rp3.78 billion in assets that had been seized and deposited into the Corruption Eradication Commission’s (KPK) holding account.