Indonesia Financial Services Authority completes PT BPR Panca Dana banking crime investigation and hands three suspects to prosecutors

The Indonesia Financial Services Authority (OJK) has completed its criminal investigation into alleged banking offences at PT Bank Perkreditan Rakyat (BPR) Panca Dana in Depok, West Java, and transferred the case file to the public prosecutor, which was declared complete (P.21). The investigation names three suspects, namely AK (former President Director), MM (Customer Service), and VAS (Head of Operations), and OJK has completed the stage II handover of the suspects and evidence to the Depok District Attorney. OJK identified two alleged schemes: (i) the deliberate creation of false records through the redemption of 96 deposit certificates in the names of 35 depositors without their knowledge, totalling IDR 14,024,517,848 over October 2018 to May 2024, with proceeds indicated to have been used for personal purposes and to cover interest and replacements for misused deposits; and (ii) the initiation and approval of fictitious lending, comprising 660 credit facilities to 646 borrowers over May 2020 to May 2024, with a recorded outstanding balance as of August 2024 of IDR 32,430,827,831, alleged to have deviated from applicable requirements and to have been used in part to manage the bank’s non-performing loan ratio and for personal benefit. The suspects are charged under Article 49(1)(a) and/or (c) of Law No. 4 of 2023 (amending the Banking Law), alongside relevant Penal Code provisions, carrying potential penalties of up to 15 years’ imprisonment and fines of up to IDR 5 billion; OJK also reported seizing suspected proceeds of crime including land and buildings, a vehicle, jewellery and other items.