Indonesia: Three arrested for alleged corruption in state bank loan program

The Purwakarta District Attorney's Office has officially detained three suspects in connection with an alleged corruption case involving the People's Business Credit (KUR) program at a state-owned bank. The arrests were made on Wednesday night.

These individuals are accused of manipulating loan application data, which allegedly resulted in state losses amounting to Rp3.43 billion. The suspects have been identified by their initials: AS, a credit official or marketing officer at the bank, and DS and TH, who reportedly acted as intermediaries or "calo" in the loan application process.

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After the evidence was deemed sufficient, we immediately named the three individuals as suspects.

According to the Head of the Purwakarta District Attorney's Office, Yudhi Kurniawan, the suspects were formally named after sufficient evidence was gathered. The case involves the KUR facility provided to customers. Investigators discovered alleged data manipulation during the loan application process, with intermediaries reportedly submitting fraudulent business legitimacy documents.

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These 'calo' (intermediaries) presented what appeared to be business certificates. However, in reality, they did not possess the required business certificates.

Investigators found that while the debtors existed, the loan applications were allegedly processed through these intermediaries. Furthermore, there are suspicions that loan amounts, or 'plafon,' were disbursed in excess of established regulations. The funds are believed to have been used by the intermediaries rather than directly by the individuals whose names were used for the loans.

The three suspects have been detained at the Purwakarta Class IIB Penitentiary for an initial 20-day period. The investigation into this case has been ongoing for approximately one year. The suspects face charges under Indonesia's Criminal Code and laws concerning the eradication of corruption.

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The loan amounts were allegedly disbursed in excess of the stipulated provisions. Meaning, the credit ceiling was allegedly given beyond the prescribed amount.