Stroke-Afflicted Former LPD Treasurer Convicted of Rp 128 Million Corruption, Sentenced to One Year in Prison
I Ketut Tajem (61) has been found guilty in the corruption case involving the management of LPD Tanggahan Peken, Susut, Bangli. Suffering from a stroke and seated in a wheelchair, the former LPD treasurer could only accept his fate as the panel of judges at the Denpasar Corruption Court read out the verdict and imposed a one-year prison sentence on Tuesday (5/5/2026). His medical condition was also considered a mitigating factor.
The panel of judges, chaired by Tjokorda Putra Budi Pastima with members Ni Luh Suantini and Nelson, stated that the defendant was not proven guilty on the primary charge but was legally and convincingly guilty on the subsidiary charge, namely the criminal act of corruption.
“The panel imposes a prison sentence on the defendant I Ketut Tajem of one year,” the judge stated in the verdict.
In addition to the custodial sentence, the defendant was also ordered to pay a fine of Rp 50 million, with the provision that if not paid, it would be replaced by two months’ imprisonment. Furthermore, the defendant is burdened with restitution of Rp 128.4 million. If not paid within one month after the verdict becomes legally binding, his assets will be seized and auctioned.
“If the assets are insufficient, it will be replaced by three months’ imprisonment,” the panel of judges emphasised.
This verdict is lighter than the prosecutor’s previous demand of one year and six months’ imprisonment. Mitigating considerations include the defendant’s advanced age and stroke condition. Aggravating factors include that his actions caused harm to state finances.
The case stems from corrupt practices that occurred between 2005 and 2017. At that time, the defendant, as treasurer, along with other officials, allegedly fabricated LPD financial reports. The method involved creating fictitious profits by transferring customer deposit and savings funds to appear as interest income, and including unrealised interest income in the reports.
As a result of this manipulation, the LPD’s actual financial losses appeared healthy. However, behind this, liquidity was disrupted, making it difficult for customers to withdraw their funds.
In the indictment, the defendant is said to have enriched himself by Rp 128.4 million and caused losses to other parties of around Rp 3.16 billion. Based on an independent audit, the total state losses amounted to Rp 3.31 billion.
Previously, two other defendants in this case had already been sentenced, namely former LPD Chairman I Wayan Sudarma to 1.5 years’ imprisonment and administrative staff I Wayan Denes to one year.
Regarding the verdict, both the defendant and the public prosecutor stated they would consider it and have one week to determine their next legal steps.