JAKARTA — The Attorney General’s Office detained Iwan Kurniawan Lukminto, Deputy CEO of bankrupt textile giant Sri Rejeki Isman (Sritex), Wednesday following his designation as a suspect in a corruption case involving misuse of bank loans.
Iwan is accused of misappropriating credit facilities from Bank Jawa Barat and Banten (BJB), Bank DKI, and Bank Jawa Tengah. Prosecutors say the loans, totaling Rp 692 billion ($42.3 million) from BJB and Bank DKI alone, were disbursed without collateral and partly diverted to pay personal debts and purchase property.
Nurcahyo Jungkung Madyo, Director of Corruption Investigations at the Attorney General’s Office, confirmed that Iwan will be held for 20 days at the Salemba detention center in South Jakarta. Iwan is the younger brother of former Sritex CEO Iwan Setiawan Lukminto, who has already been detained in the same case.
Investigators reviewed documents and examined 277 witnesses before making the arrest. They found that loan applications co-signed by Iwan contained fictitious invoices and financial records. The fraudulent scheme is estimated to have caused state losses of approximately Rp 1 trillion ($61 million).
Sritex, once a leading name in Indonesia’s textile industry, was declared bankrupt in October 2023 after defaulting on creditor payments. The company ceased operations in March 2025, ending its 58-year run and leaving over 11,000 employees jobless, despite prior management efforts to secure a government bailout.
