Jakarta – The Attorney General's Office has taken a step forward by naming a number of suspects on the corruption over bank loans to Sri Rejeki Isman (Sritex). However, this is not yet enough. The AGO also needs to investigate more thoroughly the role of the bank officials involved in the granting of these huge loans to Sritex, as well as the role of outsiders, who made it possible for these bad credit to go ahead.

So far, the AGO has named three suspects: Sritex President Commissioner Iwan Setiawan Lukminto, former Bank DKI Chief Executive Officer (CEO) Zainuddin Mappa, and former official of Bank Pembangunan Daerah Jawa Barat dan Banten (BJB), Dicky Syahbandinata. All three are alleged to have played a role in the credit disbursement of Bank DKI and BJB to Sritex, which was done without adequate collateral.

According to the AGO, instead of using it for working capital, the funds from the two regional government-owned banks were diverted to pay debts to third parties and to buy non-productive assets. As a result, the state lost up to Rp692.9 billion.

According to the principles of prudence in banking, credit without an adequate collateral is only provided to companies with an A credit rating from international rating institutions such as Fitch and Moody's. Therefore, it is highly irregular that Sritex, with a rating of BB minus and is classified as a high risk of default, receives such a large disbursement of funds.

It is clear that this is more than simple administrative negligence. There are strong indications of misuse of authority or even influence trading practices by people who have so far remained untouched by the law. And this is not simply a matter of non-performing loans. If a company with a poor reputation and financial risk can obtain funding without any sound basis, what is at stake is the credibility and management of these regional government-owned banks.

And here, a number of crucial questions arise. How is it possible that a textile company with a poor rating such as Sritex could obtain massive loans from state-owned banks without any adequate collateral? And who was actually behind these risky decisions? Were there pressures from individuals in the government on bank directors to provide the loans?

No less suspicious is why only two banks – Bank DKI and Bank BJB – have been implicated in this case. After all, Sritex still has debts of more than Rp3.5 trillion to a number of other banks, including major banks such as Bank Negara Indonesia and Bank Rakyat Indonesia. Were the same methods used to obtain credit from these banks? And were there any flows of funds to other parties that have managed to escape the attention of the law enforcement authorities?

It is important to remember that in October 2024, the National Police's Criminal Investigation Department opened an investigation into the falsification of documents, money laundering, and other abuses in relation to Sritex loans. But that case never went to trial.

Nobody wants to see the AGO repeating the old scenario when major cases disappear without any explanation. This time, the investigation cannot stop with a few people who have been made scapegoats. It must clear away the thick fog concealing whoever is the mastermind behind the Sritex scandal.

– Read the complete story in Tempo English Magazine

Source: https://en.tempo.co/read/2014649/uncovering-the-sritex-credit-scanda