Two Sritex Executives Demanded 16-Year Prison Sentences in Credit Corruption Case

Two Sritex executives, Chairman Iwan Setiawan Lukminto and CEO Iwan Kurniawan Lukminto, have been demanded 16 years in prison in a case of alleged corruption involving credit facilities that have dragged down the now-bankrupt textile company.

Public Prosecutor Fajar Santoso also demanded a criminal fine of Rp1 billion for each defendant. If the fine is not paid, it will be replaced with imprisonment for 190 days.

In the indictment, the prosecutor stated that both defendants were proven to have committed the criminal act of corruption as well as money laundering.

“To declare the defendants guilty of violating Article 603 of Law No. 1 of 2023 and Article 3 of Law No. 8 of 2010 on the Prevention and Eradication of Money Laundering Crimes,” he said at the trial in the Semarang Corruption Court, on Monday (20/4).

The prosecutor explained that the defendants applied for loans from three regional government-owned banks using financial reports that did not match the data in the Financial Information Service System (SLIK) of the Financial Services Authority (OJK).

In the demand, Iwan Setiawan Lukminto is named as the main perpetrator in the case that caused state losses of around Rp1.3 trillion.

“The state losses are real and cannot be recovered because PT Sritex has been declared bankrupt and does not have sufficient assets,” he said at the trial chaired by Chief Judge Rommel Franciskus Tampubolon.

The prosecutor also assessed that the actions of the defendants had a broad impact on the regional economy. In terms of the money laundering crime (TPPU), both are said to have disguised the proceeds of crime by entering them into the company’s operational accounts so that they appeared as legitimate income.

In addition, the funds from the criminal act were also used to purchase various assets, such as land, houses, apartments, and vehicles.

In its considerations, the prosecutor assessed that the actions of the defendants caused significant state losses.

“The defendants do not feel guilty and do not regret their actions,” he said.

The prosecutor also requested that the panel of judges impose additional penalties in the form of payment of replacement money for state losses of Rp677 billion each. If not paid, the penalty will be replaced with 8 years’ imprisonment.

In response to the demand, Chief Judge Rommel Franciskus Tampubolon gave both defendants the opportunity to submit their defence at the next hearing.