ASIATODAY.ID, JAKARTA – The Indonesian Attorney General’s Office has officially named three suspects in a major corruption case involving illegal credit disbursement to PT Sri Rejeki Isman Tbk (Sritex), one of Southeast Asia’s largest textile companies. Among the suspects are two former executives from regional development banks.
Zainuddin Mappa (ZM) , former President Director of Bank DKI (Jakarta’s regional development bank) in 2020, and Dicky Syahbandinata (DS) , former Head of Corporate and Commercial Division at Bank BJB (West Java and Banten Regional Development Bank), have both been indicted. The third suspect is Iwan Setiawan Lukminto (ISL), former CEO of Sritex from 2005 to 2022.
The announcement was made on Wednesday evening, May 21, 2025, by Abdul Qohar, Director of Investigation for the Deputy Attorney General for Special Crimes.
The suspects are accused of unlawfully providing credit from Bank DKI and Bank BJB to Sritex, without proper financial due diligence or adherence to banking protocols.
“The investigation revealed sufficient evidence to indicate a criminal act of corruption in the disbursement of credit from Bank DKI and Bank BJB to PT Sri Rejeki Isman Tbk,” said Qohar, Wednesday, May 21, 2025.
The three individuals are being charged under Article 2(1) or Article 3 in conjunction with Article 18 of Indonesia’s Anti-Corruption Law No. 31 of 1999, as amended by Law No. 20 of 2001, as well as Article 55(1)(1) of the Criminal Code.
All three suspects have been detained at Salemba Detention Center for an initial 20-day period as the investigation continues.
Chronology of the Sritex Loan Fraud Case
Investigators revealed that the total outstanding loan amount granted to Sritex by state-owned and regional banks as of October 2024 had reached IDR 3.58 trillion (approx. USD 225 million), with the following breakdown:
– Bank Jateng (Central Java): IDR 395.66 billion
– Bank BJB & Bank Banten: IDR 543.98 billion
– Bank DKI: IDR 149.78 million
– Syndicated Loans (Bank BNI, Bank BRI, LPEI): IDR 2.5 trillion
– Sritex also received credit from 20 private banks.
Suspicious Financial Anomalies
Sritex’s financial reports raised suspicions when the company posted a net loss of USD 1.008 billion (approx. IDR 15.65 trillion) in 2021—after having reported a profit of IDR 1.24 trillion in 2020. This drastic swing in financial performance is now a key focus of prosecutors.
At the time of the loans, Sritex held a BB- rating from Moody’s, indicating a high risk of default. Yet, the banks approved unsecured loans without proper credit risk assessments or adherence to regulatory standards. Indonesian banking regulations state that unsecured loans should only be granted to debtors with an “A” rating or higher.
The Attorney General’s Office discovered that the credit extended to Sritex was misused. Instead of being allocated for working capital—as declared in the loan agreements—the funds were allegedly used to repay existing debts and purchase non-productive assets.
These misuses led to the loans being categorized as non-performing (collectability 5). The company’s assets are reportedly inadequate as collateral, and thus cannot cover the outstanding debts.
PT Sri Rejeki Isman Tbk was officially declared bankrupt by the Semarang Commercial Court through case decision No. 2/PDT.SUS/homologasi/2024/PN Niaga Smg.
The Attorney General estimates that the corrupt loan disbursements have caused state financial losses of IDR 3.58 trillion. (AT Network)
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