Private Party Defendant in LPEI Credit Case Sentenced to 8 Years in Prison

The panel of judges at the Corruption Court (Tipikor) at the Central Jakarta District Court has sentenced Hendarto, the owner of PT Sakti Mait Jaya Langit and PT Mega Alam Sejahtera, to eight years in prison. Based on the legal facts revealed during the trial, the judges were convinced that Hendarto was proven to have committed corruption related to credit facilities from the Indonesian Export Financing Institution (LPEI), which caused state losses amounting to trillions of rupiah. “Sentencing Defendant Hendarto to eight years in prison,” said presiding judge Brelly Yuniar Dien Wardi Haskori while reading the verdict at the Central Jakarta Corruption Court on Monday evening (22/6). The judges also imposed a fine of Rp500 million, subsidiary to 140 days of imprisonment. Additionally, they imposed an additional penalty of restitution amounting to Rp1.05 trillion and US$49.8 million, subsidiary to seven years of confinement. “Resulting in total state losses of Rp1,059,350,000,000 and US$49,875,000,” the judge stated. The judge noted that the restitution payment would take into account evidence already confiscated for the state as a deduction, as well as money already deposited by Hendarto totalling Rp3.77 billion. The judge declared Hendarto legally and convincingly proven guilty of committing corruption jointly. The criminal act was carried out together with former LPEI officials. The officials in question are Kukuh Wirawan, former Head of Financing Division I; Ngalim Sawega, former Executive Director; Basuki Setyadjid, former Managing Director III; Arif Setiawan, former Managing Director IV; and Omar Baginda Pane, former Managing Director V. They are being prosecuted separately. According to the judge, Hendarto’s actions were proven to have violated Article 603 in conjunction with Article 20 letter c in conjunction with Article 126 paragraph 1 of the National Criminal Code in conjunction with Article 18 of the Corruption Eradication Law. In handing down the verdict, the judge considered several aggravating and mitigating factors. The aggravating factor was that the defendant’s actions did not support the government’s programme to eradicate corruption and caused enormous state losses. “The defendant used the money for gambling and to buy luxury goods,” the judge said. Meanwhile, mitigating factors included the defendant having no prior convictions, being cooperative during the trial, and being in ill health. This sentence mirrors the demand of the Public Prosecutor from the Corruption Eradication Commission (KPK), who had sought an eight-year prison term for Hendarto.