Indonesian tycoon jailed 14 years for $85M corporate fraud scheme
Iwan Setiawan Lukminto Between 2017 and 2019, Lukminto manipulated Sritex’s financial records to secure loans from government-owned banks. The lenders included a regional bank controlled by the Jakarta provincial government and Bank Pembangunan Daerah Jawa Barat dan Banten, owned by another provincial authority. Instead of repaying existing debts, the funds were diverted through fake invoices back into the company.
The stolen money was then used to buy assets such as land and rice fields. Investigators later estimated the fraud caused state losses of 1.3 trillion rupiah (RM293 million). Despite legal challenges, Sritex was officially declared bankrupt at the end of 2024. Operations ceased entirely on March 1, 2025, after the company lost its final appeal against the bankruptcy ruling.
Lukminto’s conviction follows a lengthy investigation into one of Indonesia’s largest corporate fraud cases. The 14-year sentence reflects the severity of the crimes, which included falsifying documents, laundering money, and leaving behind massive debts. The collapse of Sritex has also left creditors and employees facing significant financial losses.
