Sudjiono denies corruption charges

JAKARTA: A former president director of state-owned company PT Bahana Pembinaan Usaha Indonesia (PBUI) denied on Wednesday charges that he misused US$240.9 million in state funds.

Defendant Sudjiono Timan, 42, maintained his innocence during his trial at the South Jakarta District Court.

"It was the board of directors, not me, who permitted the disbursement of loans to the debtors," he said during the six- hour hearing, which was presided over by judge IDG Putra Jadnya.

Sudjiono has been charged under several articles of the anticorruption law, and faces a maximum penalty of 20 years in prison.

According to state prosecutors, during Sudjiono's term as president director from 1993 to 2001, PT BPUI disbursed $240.9 million to several companies that did not qualify for the loans.

The companies included Asia Finance Limited and Festival Company Inc., which are owned Sudjiono associates Agus Anwar and Prajogo Pangestu, respectively.

Prosecutors also said Sudjiono approved the disbursement of Rp 263 billion from PT BPUI's investment fund account to both companies, as well as PT Penta Investment Limited.

PT BPUI is under the central bank and is responsible for channeling funds to small and medium-size companies. -- JP