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Jakarta Post

Former IBRA head indicted in BLBI case

  • Kharishar Kahfi

    The Jakarta Post

Jakarta   /   Mon, May 14, 2018   /   02:50 pm
Former IBRA head indicted in BLBI case Under investigation: Syafruddin Arsyad Temenggung (center), former chairman of the Indonesian Bank Restructuring Agency (IBRA), and his lawyer Yusril Ihza Mahendra (left), leave the Corruption Eradication Commission (KPK) building after a questioning session on April 18. (Antara/Hafidz Mubarak A.)

Corruption Eradication Commission (KPK) prosecutors have indicted Syafruddin Arsyad Temenggung, former chairman of the Indonesian Bank Restructuring Agency (IBRA), for his alleged involvement in a case pertaining to  irregularities surrounding the disbursement of Bank Indonesia liquidity support (BLBI).

“The defendant, as IBRA chairman, issued a letter freeing Bank Dagang Nasional Indonesia [BDNI] and its stakeholder Sjamsul Nursalim from their debts, although the latter had not yet fulfilled his obligation to the agency,” KPK prosecutor Khairudin read out the indictment on Monday.

Syafruddin is accused of misusing his authority as former IBRA chairman.

(Read also: Prosecutors to make charges against ex-IBRA head)

Prosecutors also said his alleged move caused Rp 4.5 trillion (US$322 million) in state losses, according to an audit conducted by the Supreme Audit Agency (BPK).

The antigraft body named Syafruddin a suspect in April last year. He was the first official to be named a suspect in the case after three years of investigation.

The BLBI was liquidity support provided by the government through the central bank for 48 commercial banks totaling Rp 144.5 trillion to cope with massive runs during the monetary crisis. It was later found that 95 percent of the funds had been embezzled. (ebf)