
Indonesia names former boss of textile giant Sritex suspect in loan fraud
JAKARTA, May 22 (Reuters) - The Indonesian Attorney General's Office has named three people, including the former president director of Sritex (SRIL.JK), opens new tab, as suspects in alleged corruption linked to bank loans to the now-bankrupt textile giant, officials said.
Prosecutors detained the three men as suspects late on Wednesday, said AGO spokesperson Harli Siregar.
The AGO named them as Sritex former president director Iwan Setiawan Lukminto, Zainuddin Mappa, former CEO of Bank DKI , a regional bank owned by the Jakarta provincial government, and Dicky Syahbandinata, a former executive at Bank Pembangunan Daerah Jawa Barat dan Banten (BJBR.JK), opens new tab which is owned by two other provincial governments.
It said that Lukminto was not Sritex's CEO at the time of his arrest, clarifying earlier reports.
Sritex was declared bankrupt at the end of last year as it struggled to service its debts, which reached $1.6 billion in June. It stopped operations on March 1 after failing in its appeal against the bankruptcy ruling.
The corruption investigation is linked to unsecured loans to Sritex totalling about 693 billion rupiah ($42.54 million).
Lukminto was not available for comment and his lawyer is not yet known. His brother, who is also a former Sritex executive, did not immediately respond to a request for comment.
The executives at the regional banks "did not conduct sufficient analysis and comply with procedures and requirements," Abdul Qohar director of investigations at the AGO told reporters on Wednesday. "Granting loans without collateral can only be given to companies or debtors with A rating."
The office did not provide details on when the loans were made.
Sritex's government-appointed curator, Bank DKI and Bank Pembangunan Daerah Jawa Barat dan Banten did not immediately respond to requests for comment. The lawyers for the other two suspects were not immediately clear.
Prosecutors also found that Sritex had outstanding debts to several other banks.
The textile giant made clothes for high street brands including H&M and Rip Curl, but ran into trouble as global demand declined and competition from lower-cost rivals intensified.
Sritex is currently looking for investors to lease its assets.
($1 = 16,290.0000 rupiah)
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


BBC News
an hour ago
- BBC News
Leeds City Council to write off thousands in unpaid council tax
More than £650,000 in unpaid council tax is to be written off after Leeds City Council said there was "no realistic prospect of collection".The authority said it had taken the decision despite "concerted efforts" to obtain the to a report, the amount to be written off represented about 0.1% of the council's total Local Democracy Reporting Service said some of the money was owed by people who had been made bankrupt or the debtor had died, while some had been written off because the person who owed it had no means to pay or could not be traced. The report said "each individual debt has been individually reviewed and revenue management considered that there is no realistic prospect of collection"."For bankruptcies, these debts are only written off if the insolvency practitioners report that there are no assets out of which the creditors can be paid."In total £655,300 remains outstanding, including £311,300 from 2010-11 and £344,000 from the following tax in Leeds was increased by 4.99% for 2025/26 as the authority sought to make more than £100m in annual increase councils are allowed to make includes a "social care precept" to help cover the cost of looking after vulnerable people. Listen to highlights from West Yorkshire on BBC Sounds, catch up with the latest episode of Look North.


Reuters
an hour ago
- Reuters
US team investigating foreign bribery dwindles, sources say
WASHINGTON, June 9 (Reuters) - The U.S. Justice Department's team dedicated to investigating allegations of foreign bribery has dwindled as President Donald Trump's administration reviews its enforcement of a decades-old law aimed at preventing corruption, according to three people familiar with the matter. The DOJ's Fraud Section unit tasked with enforcing the anti-bribery law has shrunk to about 15 prosecutors, according to two of the sources. That number is down from 32 as of a January report published on the department's website. The cuts follow Trump's executive order in February calling for a pause in enforcement of the Foreign Corrupt Practices Act, a 1977 law that prohibits companies that operate in the U.S. from bribing foreign officials and has become a cornerstone of federal efforts to combat corruption. A spokesperson for the Justice Department declined to comment. The DOJ launched a 180-day review of its enforcement of the FCPA following Trump's order, which kicked off an exodus of staff from the unit. Prosecutors largely moved elsewhere in the Justice Department's Criminal Division, including its Healthcare and Marketplace Fraud units, two of the sources said. New guidance on how prosecutors are to handle FCPA cases is being drafted and expected to be released soon, one of the sources said. Attorney General Pam Bondi in February directed foreign bribery prosecutors to prioritize cases related to drug cartels, a Trump administration emphasis that has not traditionally been a focus of the unit. A memo from the Criminal Division last month listed foreign bribery below issues such as fraud in government programs and tariff evasion as corporate enforcement priorities for the Trump administration. The DOJ has been scaling back its enforcement against white-collar crimes and focusing on different types of cases. It has also dropped other initiatives aimed at preventing corruption.


Reuters
7 hours ago
- Reuters
Thailand's B. Grimm Power and Singapore's Digital Edge to invest $1 billion in Thai data centre
BANGKOK, June 9 (Reuters) - Thai B. Grimm Power Pcl and Singaporean digital infrastructure firm Digital Edge will invest $1 billion in a 100-megawatt data centre in Thailand, the companies said in a statement on Monday.