OJK Completes Investigation into PT BPR DCN Fraud Case, Hands Suspect to Prosecutors
The Financial Services Authority (OJK) has concluded its investigation into a criminal case at PT BPR DCN in Malang, East Java, by handing over the suspect and evidence to the Public Prosecutor. The move marks the completion of the second stage of the legal process.
“The completion of this investigation reflects the OJK’s commitment to enforcing the law firmly, consistently, and sustainably to safeguard the integrity of the banking industry and protect the public interest,” said Agus Firmansyah, Head of the OJK’s Integrated Financial Services Sector Surveillance and Policy Department, in a statement released in Jakarta on Friday.
In this case, the OJK named one suspect, identified by the initials GK, who served as a Commissioner and Shareholder of PT BPR DCN. Prior to the handover, the suspect had resisted the investigation by failing to attend summons, attempting to flee, and filing various legal challenges, including two pre-trial motions against the determination of their suspect status.
The investigation was a follow-up to the OJK’s supervisory process, which escalated from routine oversight to a special examination and finally a full investigation. The suspect is alleged to have committed several violations, including failing to record cash withdrawals through a voucher mechanism totalling approximately IDR 5.8 billion between January 2020 and June 2024. The suspect also allegedly falsified the bank’s books in February 2024 by pawning collateral consisting of precious metals and gold jewellery belonging to the bank, valued at around IDR 600 million.
Further allegations include causing false entries in the bank’s records by granting 71 credit facilities worth approximately IDR 14.8 billion without the knowledge of the debtors between July 2020 and June 2024. The suspect is also accused of failing to record the collection of funds from 12 depositors, comprising 25 certificates of deposit with a total value of around IDR 7.8 billion, between March 2020 and 2022.
For these actions, the suspect is charged under Article 49, paragraph (1) letters a and/or b, Article 49, paragraph (2) letter b, and/or Article 50A of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, which amends Law Number 7 of 1992 concerning Banking, in conjunction with Article 55, paragraph (1) and Article 65 of the Criminal Code. The suspect faces a maximum prison sentence of 15 years and a maximum fine of IDR 5 billion.
In handling criminal offences in the financial services sector, the OJK continues to coordinate and cooperate with law enforcement agencies, including the Indonesian National Police and the Attorney General’s Office. The OJK will continue to strengthen professional, firm, and sustainable law enforcement against any suspected criminal acts in the financial services sector as part of its efforts to maintain financial system stability, strengthen the governance of the financial services industry, and enhance public protection.