Marianne Kearney, Jakarta – In an encouraging sign that Indonesia is willing to prosecute even top officials for corruption, central bank governor Sjahril Sabirin was yesterday sentenced to three years in prison and fined 15 million rupiah (S$2,700) over a bank scam.
The verdict marks the fourth time that the government has acted against powerful people this month. Parliament Speaker Akbar Tandjung was detained and former trade and industry minister Rahardi Ramelan arrested over another graft scandal. Former president Suharto's son Hutomo "Tommy" Mandala Putra faces trial next week on charges of masterminding the murder of a judge.
A defiant Sjahril told reporters after the verdict was announced: "I am not guilty. I will appeal." He also said he would not relinquish his post.
In a judgment that created ripples in the courtroom, presiding Judge Subardi of the Central Jakarta District Court said: "Sjahril Sabirin breached the trust the country has given him."
The central bank chief was charged with allowing 904 billion rupiah to be transferred from the Indonesian Bank Restructuring Agency to PT Bank Bali in 1999. Bank Bali then paid a 546 billion rupiah commission to Era Giat Pratama, a firm linked to the ruling Golkar party.
An audit concluded that funds had been channelled to then president B.J. Habibie's election campaign. The scandal prompted international lenders to suspend badly needed loans to the crisis-ridden country.
Lawyers yesterday expressed surprise that the central bank chief was found guilty, as two other key defendants were acquitted. They also said it was too early to assume that the verdict marked the beginning of legal reform, pointing out that the Supreme Court could still overturn the ruling.
"The courts still have a long way to go as they are still quite corrupt," said lawyer Frans Winarta, adding that the sentence was light. Mr Teten Masduki of the Indonesian Corruption Watch said the decision could restore public trust in the courts.
But financial analyst David Chang of Vickers Ballas Indonesia cautioned: "The case shows that even the central bank governor is not immune to the legal consequences of corruption, but it is not enough to reassure investors."