Jakarta, Indonesia Sentinel — Indonesia’s Attorney General’s Office has arrested former President Director of PT Sri Rejeki Isman Tbk (Sritex), Iwan Setiawan Lukminto, over an alleged corruption case involving bank credit facilities extended to the textile giant.
“Yes, he has been arrested,” confirmed Deputy Attorney General for Special Crimes Febrie Adriansyah on Wednesday (May 21). He did not provide further details on the arrest or Lukminto’s legal status.
The arrest was further verified by Attorney General’s Office spokesperson Harli Siregar. “He was apprehended last night in Solo,” Harli states as reported by CNBC Indonesia. He added that Lukminto has since been transferred to the Attorney General’s Office headquarters in Jakarta for questioning as a witness.
While authorities have not disclosed the reasons for the arrest, Attorney General’s had been investigating alleged corruption tied to the extension of bank loans to Sritex.
Though Sritex is a private firm, prosecutors say the case falls under their jurisdiction because the loans were issued by state-owned banks.
Harli cited Indonesia’s Law No. 17/2003 on State Finance, which stipulates that regional finances are considered part of state finances. Based on that legal framework, any unlawful actions involving credit disbursement by state-owned entities to the Lukminto family business could be categorized as corruption.
As of now, the case remains in the early stages of investigation, with no suspects formally charged. Prosecutors have also yet to detail the structure of the case or the scale of potential state losses.
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Sritex was declared bankrupt earlier this year. Founded in 1966, Sritex grew into one of Indonesia’s largest textile manufacturers, serving both domestic and international markets.
However, after years of financial struggles, the 58-year-old company was declared bankrupt by the Semarang Commercial Court and ceased operations on March 1, 2025, laying off more than 10,000 employees.
The company had sought to overturn the ruling through appeals and a judicial review, but Indonesia’s Supreme Court upheld the bankruptcy decision in December 2024, sealing the fate of the once-prominent textile exporter.
(Raidi/Agung)
