Hendarto Sentenced to 8 Years in Prison for LPEI Corruption Case
Translated from Indonesian, summarized and contextualized by DistantNews.
At a glance
- Hendarto, owner of PT Sakti Mait Jaya Langit (SMJL), has been sentenced to eight years in prison for corruption related to LPEI credit facilities.
- He was also fined Rp 500 million, with a subsidiary sentence of 140 days imprisonment.
- The court ordered Hendarto to pay state restitution of Rp 1.059 trillion and US$49.87 million, with a deadline of one month after the verdict becomes legally binding.
Hendarto, the owner of PT Sakti Mait Jaya Langit (SMJL), has been found guilty of corruption and sentenced to eight years in prison by the Central Jakarta Corruption Court. The charges stem from his involvement in the misuse of credit facilities provided by the Indonesia Eximbank (LPEI).
The court also imposed a fine of Rp 500 million, with an additional 140 days of imprisonment if the fine is not paid. Presiding judge Brelly Yuniar Dien Wardi Haskori stated that Hendarto was proven to have engaged in corruption, both collectively and continuously, as detailed in the first charge.
Beyond the prison sentence, Hendarto is ordered to pay state restitution totaling Rp 1.059.350.000.000 and US$49.875.000. This amount considers cash deposits and seized assets. He has one month from the date the verdict becomes final to make the payment. Failure to do so could result in his assets being seized and auctioned to cover the restitution.
Declaring that the defendant Hendarto has been proven legally and convincingly guilty of committing the crime of corruption, collectively and continuously, as stated in the first charge.
If Hendarto lacks sufficient assets to cover the restitution, he faces an additional seven years in prison. The state suffered losses amounting to Rp 1.05 trillion and US$49.87 million due to Hendarto's unlawful actions, which led to his personal enrichment. The court also noted the enrichment of several LPEI officials, including Dwi Wahyudi, Arif Setiawan, and Kukuh Wirawan.
The corruption involved using LPEI financing facilities to fund plantation businesses located in protected forest and conservation areas. Hendarto allegedly met with LPEI officials Kukuh Wirawan and Dwi Wahyudi to facilitate the disbursement of credit facilities for PT SMJL, involved in palm oil plantations, and PT Mega Alam Sejahtera, engaged in mining. Between October 2014 and October 2015, PT SMJL received export investment credit facilities totaling Rp 950 billion for refinancing palm oil plantations.
In the event that the defendant does not have sufficient assets to pay the restitution, the defendant shall be sentenced to seven years in prison.
Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.