The case comes as Yuddy remains under investigation by the Corruption Eradication Commission (KPK) in a separate graft scandal pertaining to the botched procurement of advertising for the West Java and Banten regional development bank.

The Attorney General’s Office (AGO) announced on Tuesday that Yuddy, who resigned from his post at BJB in March, allegedly approved the Sritex credit despite knowing the company had concealed a Rp 200 billion debt and was facing repayment on a maturing medium-term corporate debt.

Yuddy has been placed under city detention for 20 days since his suspect's naming due to health reasons, AGO spokesperson Anang Supriatna said in a statement.

The AGO also named seven other suspects in the Sritex case, including former executives of the textile firm and officials from three regional lenders: Bank BJB, Jakarta’s Bank DKI and Central Java’s Bank Jateng. All but Yuddy have been taken into custody.

The banks are suspected of unlawfully disbursing loans to Sritex, causing an estimated state loss of Rp 1.08 trillion, although the exact figure is still being audited by the Supreme Audit Agency (BPK).

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