Case of Rp1.7 Trillion Palm Oil Credit, Five Former State-Owned Bank Employees Arrested

PALEMBANG - Investigators from the South Sumatra High Prosecutor's Office (Kejati) have detained five suspects, namely former employees of a state-owned bank who were involved in the corruption case of the distribution of palm oil plantation loans to PT BSS and PT SAL with a total value of Rp. 1.7 trillion.

Head of the South Sumatra High Prosecutor's Office (Kajati) Ketut Sumedana said the five suspects who were detained were KW as Head of the Agri-business Division of the head office from 2010-2014, SL as Head of the Credit Risk Analysis Division from 2010-2015, WH as Deputy Head of the Agri-business Division of the head office from 2013-2017, I as Head of the Agri-business Division from 2011-2013, LS as Deputy Head of the ARK Division from 2010-2016.

"Based on today's examination, of the seven people who attended, it was decided to detain five people," said Ketut Sumedana, quoted by Antara, Wednesday, April 8.

The five suspects were then placed in the Palembang Class I Detention House (Rutan) for 20 days, starting from April 7 to April 26, 2026.

Meanwhile, the other two suspects, namely KA as Group Head of the Agribusiness Division in 2010-2012 and TP as Group Head of the Agribusiness Division in 2012-2017, were decided not to be detained for health reasons.

"KA suffers from heart disease, while TP has an autoimmune disease. This postponement is strengthened by a valid medical record," said Ketut.

He explained that previously the Attorney General's Office on March 27, 2026 had named eight suspects in the case. Then a re-summoning was carried out for an examination on Tuesday (8/4/2026) which was attended by seven suspects.

"Another suspect with the initials AC as Group Head of the ARK Division in 2008-2014 was unable to attend because he was undergoing treatment for kidney disease at a hospital in Jakarta," he said.

Deputy Head of the South Sumatra Attorney General's Office, Anton Delianto, added that the determination of the suspect status was carried out after investigators examined at least 115 witnesses.

This case began when PT BSS applied for an investment loan for the development of core and plasma plantations worth Rp760.8 billion in 2011. Then in 2013, PT SAL also applied for a similar loan for the development of oil palm plantations worth Rp677 billion.

In the process, the credit analysis team allegedly included incorrect data and facts in the credit analysis memorandum. This led to the granting of credit in accordance with the provisions, both in relation to collateral, plasma disbursement, and garden development.

In addition to investment loans, the two companies also received additional facilities for the construction of palm oil mill (PMKS) and working capital loans. The total credit limit received by PT SAL reached IDR 862.25 billion and PT BSS IDR 900.66 billion.

"However, on its way, the loan is now in the category of five or stalled collectibility," said Anton.

For their actions, the suspects were charged with Article 2 paragraph (1) or Article 3 jo Article 18 of Law (UU) Number 31 of 1999 concerning the Eradication of Corruption Crimes as amended by Law Number 20 of 2001 jo Article 55 paragraph (1) -1 and Article 64 of the Criminal Code, as well as provisions in Law Number 1 of 2023 concerning the Criminal Code.