The Jakarta High Prosecutor’s Office has detained three KoinWorks executives over suspected corruption involving Rp600 billion in credit disbursements from state-owned lender BRI, according to Kompas.

The Jakarta High Prosecutor’s Office detained Jonathan Bryan, President Director of KoinWorks’ parent company Lunaria Annua Teknologi, alongside Commissioner Benedicto Haryono and Operations Director Bernard Adrianto Arifin on Wednesday (May 6) evening.

Authorities allege the trio facilitated financing to customers using inadequate assessments and manipulated collateral.

Dapot Dariarma, Head of Legal Information at the Jakarta High Prosecutor’s Office, said in a written statement that the suspects had allegedly distributed financing from BRI in an unlawful manner.

“This involved manipulating collateral in the form of invoices and failing to secure insurance coverage, resulting in the disbursement of approximately Rp600 billion in credit,”

Dariarma said.

Investigators have seized evidence to examine the potential involvement of bank officials and customers linked to the alleged manipulation of credit applications.

Authorities also plan to question witnesses and experts to trace the flow of funds and seize assets to recover state losses.

The three executives remain in detention at Cipinang and Salemba detention centres for an initial 20-day period, Kompas said.

Prosecutors have named the three as suspects under Indonesia’s anti-corruption laws, which carry a maximum penalty of 20 years’ imprisonment and fines of up to Rp2 billion.

The three remain suspects pending further investigation. No findings of guilt have been made.

At the time of writing, Fintech News Network has reached out to KoinWorks for comment but has yet to receive a response.

Featured image credit: Edited by Fintech News Indonesia, based on image by somemeans via Magnific