An Indonesian court sentenced the former chief executive of the now-bankrupt textile giant Sritex IDX:SRIL to 14 years in jail on Wednesday for laundering money via bank loans to the firm, state news agency Antara reported.
Below are the details of the verdict:
Judges in the Central Java court said that Iwan Setiawan Lukminto has been found guilty of manipulating Sritex's financial reports between 2017-2019 in order to secure loans, Antara reported, citing the judges.
The loans were first intended to pay the company's debt, but were redirected back to Sritex using fabricated invoices, the judges said.
The money was then used to purchase company assets such as land and rice fields.
The malpractice had caused estimated state losses of 1.3 trillion rupiah ($74.80 million).
The lenders include a regional bank owned by the Jakarta provincial government, and Bank Pembangunan Daerah Jawa Barat dan Banten IDX:BJBR, owned by another provicial authority.
Sritex was declared bankrupt at the end of 2024 after it failed to service its $1.6 billion debt. It ceased operations on March 1 this year after losing its appeal against the bankruptcy ruling.
($1 = 17,380 rupiah)