Burhanuddin faces eight-year prison sentence

Erwida Maulia ,  The Jakarta Post ,  Jakarta   |  Thu, 10/09/2008 10:29 AM  |  Headlines

TOUGH TIMES: Former Bank Indonesia governor Burhanuddin Abdullah takes a break in a waiting room at the Corruption Court in Jakarta on Wednesday. Indonesian prosecutors are seeking an eight-year prison term for the former central bank head, charged with embezzling Rp 100 billion (about US$10.5 million) in bank funds. (JP/J. Adiguna)

Corruption Eradication Commission (KPK) prosecutors on Wednesday demanded an eight-year prison sentence for former Bank Indonesia governor Burhanuddin Abdullah in a graft case.

Burhanuddin is standing trial for his role in the alleged embezzlement of Rp 100 billion (US$10.4 million) in BI funds.

Prosecutors also asked the Corruption Court to fine Burhanuddin Rp 500 million, or give him an extra six months in prison if he failed to pay.

They said Burhanuddin was "legally and convincingly guilty of committing collective fraud" with other members of the BI board of governors, as well as with the central bank's former legal bureau head Oey Hoey Tiong and former communications head Rusli Simanjuntak. The latter two are standing trial separately in the same case.

Burhanuddin knew about and approved the disbursement of the Rp 100 billion from BI's Indonesian Banking Development Foundation (YPPI) in 2003, although he was not authorized to do so, prosecutors said.

"The defendant, in partnership with Oey and Rusli, as well as other members of BI board of governors, namely Aulia Tantowi Pohan, Bun Bunan E.J. Hutapea and Aslim Tadjuddin, has intentionally violated the law and enriched other people," prosecutors said.

Aulia is the father-in-law of President Susilo Bambang Yudhoyono's son Agus Harimurti. The President recently hinted he did not mind legal action against Aulia, in a bid to uphold equality before the law.

The "enriched" people included five former senior BI officials implicated in the embezzlement of BI liquidity support (BLBI) funds, disbursed by the government to major ailing banks during the late-1990s Asian financial crisis.

"These former officials had earlier received legal aid amounting to Rp 27.7 billion from BI's official budget. So claims that the additional Rp 68.5 billion (from the YPPI funds) were also for legal aid are groundless," prosecutors said.

They added the former BI officials had used the funds for personal and family expenses, including buying houses and opening savings accounts, in addition to halting investigations by the Attorney General's Office into the BLBI cases.

The remaining Rp 31.5 billion of the YPPI funds was allegedly given to members of the House of Representatives' then Commission IX, which oversaw financial affairs, to expedite the settlement of BLBI cases and the amendment of the 1999 BI law.

The funds were disbursed to the commission members through legislators Anthony Zeidra Abidin and Hamka Yandhu, both of whom are also standing trial at the Corruption Court.

The judges adjourned Burhanuddin's trial for a week to allow his lawyers to prepare their arguments. Defense lawyer Muhammad Assegaf sought an additional week to prepare, but it was denied.

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