The former president of Indonesia's bankrupt textile giant Sritex, Iwan Setiawan Lukminto, was ordered to be arrested by the Indonesian Attorney General's Office this Wednesday (May 21) for allegedly being involved in irregular loan cases with several state and local banks.
The Director of the Corruption Investigation Bureau of the Indonesian Attorney General's Office, Abdul Khar, pointed out that Iwan and two bank executives have been identified as suspects in the credit fraud case, which involves approximately 693 billion Indonesian rupiahs (around 54.8 million Singapore dollars) in unsecured loans. He stated that there were obvious procedural violations in the approval process of these loans, as the banks in question had approved the loan applications without thoroughly analyzing the creditworthiness of the enterprise.
According to regulations, unsecured loans can only be granted to companies or individuals with an A-grade credit rating, and Sritex clearly did not meet the criteria.
Sritex was once one of Indonesia's largest textile and garment manufacturers, but due to its inability to repay debts amounting to 1.6 billion USD (about 2.1 billion Singapore dollars), it declared bankruptcy at the end of 2023 and officially ceased operations on March 1, 2024, laying off about 10,000 employees.
The Director of the Corruption Investigation Bureau of the Indonesian Attorney General's Office, Abdul Khar, pointed out that Iwan and two bank executives have been identified as suspects in the credit fraud case, which involves approximately 693 billion Indonesian rupiahs (around 54.8 million Singapore dollars) in unsecured loans. He stated that there were obvious procedural violations in the approval process of these loans, as the banks in question had approved the loan applications without thoroughly analyzing the creditworthiness of the enterprise.
According to regulations, unsecured loans can only be granted to companies or individuals with an A-grade credit rating, and Sritex clearly did not meet the criteria.
Sritex was once one of Indonesia's largest textile and garment manufacturers, but due to its inability to repay debts amounting to 1.6 billion USD (about 2.1 billion Singapore dollars), it declared bankruptcy at the end of 2023 and officially ceased operations on March 1, 2024, laying off about 10,000 employees.