The Supreme Court has acquitted former Indonesian Bank Restructuring Agency (IBRA) chairman Syafruddin Arsyad Temenggung, the man at the center of the Bank Indonesia Liquidity Support (BLBI) scandal, of corruption charges.

The court announced on Tuesday it had granted an appeal filed by Syafruddin to acquit him and overturn the lower court’s decision to sentence him to 15 years in prison with a fine of Rp 1 billion (US$70,738) for his role in the multimillion dollar graft case.

“Syafruddin was proven to have committed an action with which he had been charged, but the action is not a crime,” the court’s spokesperson, Abdullah, told a press conference in Central Jakarta on Tuesday as quoted by Antara.

The bench, however, was not unanimous in issuing the verdict, Abdullah said. One judge, he explained, argued the court should uphold the opinion of the appellate court, but the other two judges were of the opinion that the defendant’s action was a civil or administrative matter.

“There was a dissenting opinion. It was not unanimous,” he said.

In September 2018, the Jakarta Corruption Court found Syafruddin guilty of discharging Sjamsul Nursalim, the owner of Bank Dagang Negara Indonesia (BDNI), from repaying the government, causing Rp 4.58 trillion in state losses.

Sjamsul and his wife, Itjih Nursalim, were also charged in the case.

Syafruddin made the decision in his capacity as head of IBRA, which was in charge of disbursing liquidity funds for ailing banks after the 1998 financial crisis.

He was initially sentenced to 13 years’ imprisonment and fines amounting to Rp 700 million. In January, the Jakarta High Court handed him a greater sentence of 15 years in prison and Rp 1 billion in fines, as sought by Corruption Eradication Commission (KPK) prosecutors.

The case dates back to the 1998 Asian financial crisis when BDNI received Rp 28 trillion in BLBI funds, which were disbursed by the government through the central bank to help banks cope with massive runs during the crisis.

It was later found that 95 percent of the Rp 144.5 trillion of BLBI funds disbursed to 48 commercial banks, including BDNI, had been embezzled.

During the trial, it was revealed that Syafruddin, who was appointed IBRA chairman in 2002, sent a letter to then-coordinating economic minister and Financial System Stability Committee (KSSK) chairman Dorodjatun Kuntjoro-Jakti in February 2004, recommending that the KSSK write off some of Sjamsul’s debt, claiming the decision was based on a Cabinet meeting led by then-president Megawati Soekarnoputri.

The KPK said it would study the court’s verdict before deciding on what legal actions to take. It made clear that the prosecution of Sjamsul and his wife would go on despite Syafruddin’s verdict.

“We will continue to work within our authority to retrieve the 4.58 trillion in state losses [incurred in the BLBI scandal],” KPK deputy chairman Saut Situmorang said. (aps)

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