Indonesian Prosecutors Ban Sritex CEO From Travel in Credit Scandal Probe

Indonesian prosecutors have banned the CEO of textile giant Sritex, Iwan Kurniawan Lukminto, from traveling abroad as they investigate a suspected corruption case involving state bank credit.

The Attorney General’s Office (AGO) confirmed on Saturday that Lukminto is being probed in connection with a series of bank loans given to PT Sri Rejeki Isman (Sritex) and its subsidiaries.

The travel restriction, which began on May 19, 2025, will last six months as authorities dig deeper into possible corporate fraud involving state and regional banks.

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“The ban is to ensure the subject’s presence for further questioning,” AGO spokesperson Harli Siregar told.

Iwan Kurniawan Allegedly Linked to Fraudulent Loan Applications

Iwan Kurniawan Lukminto, now the CEO of Sritex, previously served as the company’s deputy CEO from 2014 to 2023.

He also held directorial roles at three Sritex subsidiaries: PT Sinar Pantja Djaja, PT Bitratex Industri, and PT Primayudha Mandiri Jaya.

Prosecutors say his various leadership roles make him a key figure in the investigation into irregularities in credit applications to public banks.

“We are looking into how credit was applied for and approved,” said Harli.

Travel Ban Ensures CEO’s Availability for Future Interrogations

The AGO’s Special Crimes Unit (Jampidsus) is scheduled to summon Iwan Kurniawan again next week.

Officials say they need him to clarify his knowledge of the company’s credit arrangements, possibly involving manipulation or false documentation.

“The subject’s cooperation is crucial for uncovering the full scheme,” Harli said on June 3 in Jakarta.

The ban prevents Lukminto from fleeing or tampering with the evidence during this critical phase of the inquiry.

Credit Case Tied to Sritex and Multiple State-Owned Banks

Prosecutors are investigating how Sritex secured loans from both national and regional public banks during Iwan’s leadership tenure.

The exact amount of credit under scrutiny has not been disclosed, but it is believed to be substantial.

Three individuals have already been named as suspects in the case, although their identities remain undisclosed.

Authorities are now examining whether Lukminto’s involvement could elevate the case to a corporate-level indictment.

Sritex’s Legal Crisis Sparks Public, Investor Concern Over Transparency

The ongoing investigation has stirred concerns among investors and public watchdogs over transparency in Indonesia’s banking system.

Sritex, once hailed as a textile success story, now faces reputational damage and potential legal consequences.

Legal experts warn that the case could expose systemic weaknesses in how state banks assess and distribute large-scale credit.

“This probe could set an important precedent for corporate accountability,” said a senior legal analyst in Jakarta.

AGO Urged to Expand Inquiry Into Sritex Financial Dealings

Calls are growing for prosecutors to broaden their investigation to include Sritex’s internal auditing and financial reporting practices.

Transparency International Indonesia has urged the AGO to pursue all links in the financial chain that may reveal deeper misconduct.

“There needs to be accountability not just from the private side, but also from bank officers,” said its spokesperson.

Prosecutors have not ruled out summoning financial officers from the lending institutions involved in the Sritex case.***