Latest news with #IwanSetiawanLukminto
Reuters
22-05-2025
- Business
- Reuters
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 ( 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 ( 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)
Free Malaysia Today
22-05-2025
- Business
- Free Malaysia Today
Indonesia arrests CEO of textile giant Sritex
About 10,000 Sritex workers faced layoffs when the company was declared bankrupt last year. (EPA Images pic) JAKARTA : The president director of bankrupt Indonesian textile giant Sritex has been arrested as part of a corruption investigation, Indonesia's attorney-general's office (AGO) said yesterday. The AGO confirmed to Reuters that the arrest of Iwan Setiawan Lukminto was due to alleged irregularities related to a bank loan provided to Sritex. Local media earlier reported the loan was provided by a state bank. Reuters sought comment from Sritex, but they did not immediately respond. The AGO did not provide details on the case, the size of the loan or which lender provided it. Sritex was declared bankrupt at the end of last year as it struggled to service its debts, which reached US$1.6 billion in June. It stopped operations on March 1 after failing in its appeal against the bankruptcy ruling. Sritex, which has produced clothes for high street brands like H&M, Rip Curl and Forever 21, as well as military uniforms for the North Atlantic Treaty Organization, has suffered from weak global demand and cheaper imported fashion. It has been looking for investors to lease its assets to prevent its value from falling. Following the bankruptcy, about 10,000 Sritex workers were facing layoffs, local media reported at that time.
