Sritex Boss Iwan Kurniawan Lukminto Sentenced to 12 Years in Prison

The Semarang Corruption Court in Central Java sentenced PT Sritex’s President Director, Iwan Kurniawan Lukminto, to 12 years’ imprisonment in a corruption case concerning the granting of credit facilities to the textile company, resulting in a state loss of Rp1.3 trillion. Chief Judge Rommel Franciskus Tampubolon, during the hearing in Semarang on Wednesday, also imposed a fine of Rp1 billion on the defendant, which if unpaid would be replaced by 190 days’ additional imprisonment. “We declare the defendant guilty of violating Article 603 of the Criminal Code on corruption offences and Article 607 of the Criminal Code on money laundering offences,” he stated. The sentence is lighter than the prosecutors’ demand of 16 years’ imprisonment and the 14-year term given to the defendant’s brother in the same case, Iwan Setiawan Lukminto. In its considerations, the court determined that the defendant was aware of the actions of Commissioner Iwan Setiawan Lukminto and Finance Director Alan Moran Saverino, who applied for loans from three regional banks using fabricated financial reports for 2017, 2018, and 2019. The purpose of the loans to the three banks was to pay bills to PT Sritex’s suppliers. However, PT Sritex created its own invoices for the claims used to secure the loans. The disbursed credit entered the suppliers’ accounts and was then withdrawn back to PT Sritex’s account under the name Toko Wijaya. The defendant was found guilty of money laundering for diverting, placing, or transferring the loan proceeds from the three regional government banks in a manner inconsistent with their intended purpose. The credit disbursement funds that returned to PT Sritex’s coffers and mingled with the company’s legitimate revenues were used to purchase land, rice fields, buildings, property, and to pay off debts. In its considerations, the court deemed the defendant’s actions as not supporting the government’s programme to eradicate corruption, collusion, and nepotism. Furthermore, according to the judge, the defendant showed no remorse and did not admit to his actions. Regarding the verdict, the judge allowed the defendant and prosecutors the opportunity to decide whether to accept it or pursue further legal remedies.