Former Sritex CEO Sentenced to 14 Years for Money Laundering in Bank Loan Scandal

An Indonesian court has sentenced former Sritex CEO, Iwan Setiawan Lukminto, to 14 years for laundering money via bank loans. The court found him guilty of manipulating financial reports to secure loans, which were then used for asset purchases, causing significant state losses.

In a decisive ruling, an Indonesian court sentenced former chief executive of the bankrupt textile company Sritex, Iwan Setiawan Lukminto, to 14 years imprisonment. Charges included money laundering through manipulated bank loans.

The Central Java court established that Lukminto falsified financial reports to obtain loans under false pretenses between 2017 and 2019.

Intended to settle debts, the loans were diverted for asset purchases, leading to state losses of approximately 1.3 trillion rupiah. Major lenders were regional authorities’ banks. Sritex declared bankruptcy after failing to repay $1.6 billion debt.