Ex-Sritex CEO jailed 14 years for $1.6 billion fraud and collapse
A court has sentenced Iwan Setiawan Lukminto, the former CEO of Indonesian textile firm Sritex, to 14 years in prison. The conviction follows a major fraud and money laundering scheme that cost the state an estimated 1.3 trillion rupiah (RM293 million). The company later collapsed under a US$1.6 billion (RM6.2 billion) debt burden. Between 2017 and 2019, Lukminto falsified Sritexâs financial records to secure loans from state-owned banks. The funds, originally intended to repay existing debts, were instead diverted through fake invoices. The laundered money was used to buy assets, including land and rice fields.
The lenders included a regional bank controlled by the Jakarta provincial government and Bank Pembangunan Daerah Jawa Barat dan Banten, another provincial authority. By late 2024, Sritex was declared bankrupt after failing to service its massive debt. The company officially ceased operations on March 1, 2025, following an unsuccessful appeal against the ruling. The fraud has left significant financial losses for the state, with investigations confirming misused funds totalling 1.3 trillion rupiah. Lukmintoâs conviction marks the end of a prolonged legal process, while Sritexâs bankruptcy closes a chapter on one of Indonesiaâs largest corporate collapses.
