JAKARTA, May 6 — An Indonesian court sentenced the former chief ‌executive of the now-bankrupt textile giant Sritex to 14 years in jail today for laundering money ‌via bank loans to the firm, state news agency Antara reported.

Below are the details of the verdict:

Judges in the Central Java court said that Iwan Setiawan Lukminto has been found guilty of manipulating Sritex’s financial reports between 2017-2019 in order to secure loans, Antara reported, citing ‌the judges.

The loans were first ⁠intended to pay the ⁠company’s debt, but were redirected ⁠back to Sritex using ⁠fabricated ⁠invoices, the judges said.

The money was then used to purchase company assets such ⁠as land and rice fields.

The malpractice had caused estimated state losses of 1.3 trillion rupiah (RM293 million).

The lenders include a regional bank owned by the ⁠Jakarta provincial government, and Bank Pembangunan Daerah Jawa Barat dan Banten, owned by another provicial ⁠authority.

Sritex was declared bankrupt at the end ⁠of ⁠2024 after it failed to service its US$1.6 billion (RM6.2 billion) debt. It ceased operations on March 1 ‌this year after losing its appeal against the bankruptcy ruling. — Reuters