Three Housing Developer Executives Detained Over IDR 237 Billion Mortgage Corruption
Three executives of PT Bumi Arta Sedayu (BAS), a housing developer in Karawang Regency, West Java, have been immediately detained after being named suspects in an alleged corruption case involving the distribution of home ownership loans (KPR).
The three individuals, identified by the initials VY, OH, and HH, were held at the Karawang Correctional Institution following interrogations by investigators from the Karawang District Attorney’s Office.
The case is alleged to have caused state financial losses of approximately IDR 237 billion, stemming from credit disbursements to 445 debtors.
“Based on the results of the investigation, investigators have named three suspects. All three are members of the leadership of PT BAS (Bumi Arta Sedayu), which is a housing developer,” said the Head of the Karawang District Attorney’s Office, Dedy Irwan Virantama, in Karawang on Friday, 4 September 2026.
The designation of suspects and subsequent detention took place after investigators gathered hundreds of statements and pieces of evidence. During the investigation process, the Karawang District Attorney’s Office has interrogated 271 witnesses, including expert witnesses.
“We have examined 271 witnesses, including experts. We have also collected 495 pieces of evidence, which include land certificate documents, electronic documents, and physical building documents,” he stated.
PT BAS is known to be a developer that received credit facilities from a state-owned bank for the construction of the Citra Swarna Grande and Kartika Residence housing estates in the Klari area, Karawang.
Both projects were developed by PT BAS between 2021 and 2024. During the investigation, authorities found indications of fictitious credit applications.
These allegations arose from a pattern of mortgage applications that were reportedly carried out systematically. The modus operandi included the use of ‘jockeys’ or identity lending, data manipulation, and the creation of forged documents to ensure credit applications were approved.
These practices were allegedly carried out by the developer through a specialised team tasked with handling mortgage applications.
According to the State Financial Loss Calculation Report from the Audit Board of the Republic of Indonesia (BPK RI), the temporary state loss has reached IDR 237,078,338,982.50, involving 445 debtors.
In addition to VY, OH, and HH, investigators have actually named one other suspect, identified by the initials HJ. However, HJ has not yet been detained as they failed to respond to summonses properly delivered. The Karawang District Attorney’s Office stated they will issue further summons for the individual.