Karawang Prosecutors Seize 42.54 Billion Rupiah in Suspected Fake Mortgage Case

Karawang prosecutors have seized 42.54 billion rupiah from an escrow account belonging to property developer PT Bumi Arta Sedayu, as they investigate suspected corruption in mortgage lending at a state-owned bank branch.

The seizure forms part of an investigation into alleged fictitious housing loans connected to the Citra Swarna Grande and Kartika Residence developments in Klari, Karawang, West Java. PT BAS, part of the Citra Swarna Group, develops housing and commercial areas. The projects were developed between 2021 and 2024.

Prosecutors said the seized funds came from an escrow account believed to be linked to the suspected fictitious credit activity. The money has been placed in a government holding account for entrusted funds managed by the Karawang prosecutors’ office. Prosecutors also secured 495 other pieces of evidence, including documents, electronic evidence, bank accounts and four buildings linked to PT BAS.

According to a state-loss calculation by Indonesia’s Audit Board, preliminary losses reached 237,078,338,982.50 rupiah and involved 445 debtors. Karawang prosecutors have detained three suspects, identified by the initials VY, OH and HH, at Karawang prison. They face charges under Indonesia’s criminal code and corruption laws.

The investigation continues as prosecutors examine the possible involvement of other people considered responsible, including banking parties suspected of irregularities in distributing the mortgages.

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The seizure was carried out in accordance with criminal procedural law.