Sritex Chairman Misused Rp 692.9 Billion in Bank Loans, Now Faces Graft Charges
Key Takeaways
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JAKARTA – Indonesia’s Attorney General’s Office (AGO) has accused Iwan Setiawan Lukminto, President Commissioner of textile giant PT Sri Rejeki Isman Tbk (SRIL), or Sritex, of misappropriating Rp 692.9 billion ($43 million) in bank loans intended for working capital.
Instead of using the loans as stipulated, prosecutors allege Lukminto redirected the funds to repay company debts and purchase land across several locations, including Yogyakarta and Solo.
In a late-night press briefing on Wednesday, May 21, 2025, Director of Special Crimes Investigations Abdul Qohar stated the loans were provided by two regional banks—Bank DKI and bank bjb (PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk)—under a credit agreement specifically for operational purposes.
“The loans were intended for working capital, but the investigation found that the funds were used for non-productive purposes, including debt payments and land acquisitions,” Qohar said.
Rp 3.5 Trillion in Unpaid Loans
According to the AGO, Sritex owes a total of Rp 3.58 trillion ($222 million) in unpaid loans to a consortium of state-owned and private lenders. These include Bank Jateng (Rp 395.6 billion), Bank Bank Jawa Barat dan Banten Tbk, or BJB (Rp 543.9 billion), Bank DKI (Rp 149.7 billion), a syndicate of state-owned lenders comprising Bank Rakyat Indonesia, Bank Negara Indonesia and Indonesia Eximbank (Rp 2.5 trillion), and other private banks for undisclosed amounts.
The AGO calculated that the direct financial loss to the state from the misappropriated loans at Bank DKI and Bank BJB amounts to Rp 692.99 billion.
Three Arrested, Including Bank Executives
Iwan Lukminto, who served as Sritex’s president director from 2005 to 2022 before becoming commissioner, was arrested along with Zainuddin Mappa, former President Director of Bank DKI and Dicky Syahbandinata, former Head of Commercial and Corporate Division at Bank Jawa Barat dan Banten Tbk.
All three were detained at Salemba Detention Center for an initial 20-day period starting Wednesday, May 21.
Questionable Creditworthiness
The AGO further noted that the loans were granted without adequate due diligence or adherence to banking procedures. Credit rating agency Moody’s had assigned Sritex a BB- rating—indicating a high risk of default, yet large credit disbursements continued.
“The credit issuance was unlawful, as it did not comply with proper analysis or credit evaluation procedures,” Qohar said.
Understanding the Charges
The suspects have been charged under Indonesia’s Anti-Corruption Law (Law No. 31/1999 as amended by Law No. 20/2001) and the Criminal Code (KUHP):
- • Article 2(1) of the Anti-Corruption Law which criminalizes acts that unlawfully enrich oneself or another person or corporation, causing a loss to state finances or the economy. The maximum penalty is life imprisonment and a fine up to Rp 1 billion.
- • Article 3: Focuses on misuse of authority, opportunity, or means available due to one’s position, again resulting in state losses. Maximum penalty: 20 years’ imprisonment.
- • Article 18: Provides for asset seizure, restitution, and replacement payment mechanisms to recover state losses. Article 55(1) of the Criminal Code: Addresses joint criminal liability, implicating all parties who intentionally participate in committing a crime.