Former IBRA's Chairman Syafruddin Arsyad Temenggung - Photo: Privacy
JAKARTA (TheInsiderStories) – Indonesian prosecutors of Corruption Eradication Commision (CEC) have sued former of the Indonesian Bank Restructuring Agency’s (IBRA) chairman Syafruddin Arsyad Temenggung to be in jailed for 15 years.
Temenggung accused of his role on the disbursement of Bank Indonesia Liquidity Support case for PT Bank Dagang Negara Indonesia (BDNI) owned by conglomerate’ Syamsul Nursalim. He was charged with article 2 verse 1 of Law on Corruption and article 55 of Indonesia Criminal Code.
“We proposed that the court sentence the defendant for 15 years in prison and pay Rp1 billion (US$67,465) in fines or a replaced with six months in jail,” said Khairuddin, CEC prosecutor in Corruption Court, Jakarta on Monday (03/09).
In a legal analysis, prosecutor said that Temenggung in cooperation with the former Financial Sector Stability Committee (FSSC) chairman Dorojatun Kuntjoro Jakti who’s involved in the case. He allegedly sent a letter to the former coordinating minister to recommend the committee to write off some of Nursalim’s debts, citing that the decision was based on a limited Cabinet meeting led by former-president Megawati Soekarnoputri.
Kuntjoro Jakti later on issued a FSSC letter in accordance to Temenggung’s recommendation, while in fact, the two officials, who had joined the cabinet meeting, knew that the meeting had never concluded or approved the writing off of the debts, according to prosecutors.

In the description of legal facts, the prosecutor said that Nursalim did not convey the existence of bad credit by PT Darmadja Citra Dipasena (DCD) and PT Wachyuni ​​Mandira (WM) when he presented BDNI’s debt payment scheme to IBRA. At that time, he pledged BDNI assets to be guaranteed in the two companies under the pretext that the pond company had credit at BDNI.

Thus, BDNI’s receivables to DCD and WM amounted to Rp4.8 trillion. However, there was a restructuring and the company’s debt to BDNI lowered to Rp3.4 trillion, of which the amount was then classified into collectable and uncollectible.

As much as Rp1.4 trillion of the debt that can be billed while Rp1.9 trillion is non-collectible debt. Against uncollectible debt, the FSSC in the Kwik Kian Gie era decided that the obligation was borne by the shareholder Nursalim.

“Kwik Kian Gie stated that Sjamsul Nursalim’s unsustainable portion of responsibility was also known to shrimp farmers belonging to him” the prosecutor said.

Gie then asked Temenggung to handle the settlement of Dipasena’s debt by issuing a FSSC letter which agreed to restructed. He then left to Lampung, a farmer of DCD and WM shrimp farms, to present the debt obligations that must be paid to the state through IBRA. However, from the presentation he mentioned the write-off.

“The presentation in Lampung conveyed the plan to write off the book, even though there was no KKSK decision to mention Dipasena’s book,” Khairuddin said.

BDNI received Rp28 trillion in BI liquidity funds, which was disbursed by the government through Bank Indonesia for 48 commercial banks to cope with massive runs during the 1998 monetary crisis. It was later discovered that 95 percent of the Rp144.5 trillion funds had been embezzled.
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