Jakarta. The Attorney General’s Office on Wednesday detained Iwan Kurniawan Lukminto, Deputy Chief Executive Officer of bankrupt textile giant Sri Rejeki Isman (Sritex), after naming him a suspect in an alleged corruption case involving bank loans obtained by the company.

Iwan is accused of misusing credit facilities provided by Bank Jawa Barat and Banten (BJB), Bank DKI, and Bank Jawa Tengah.

“He will be held for 20 days at the Salemba detention center in South Jakarta,” said Nurcahyo Jungkung Madyo, Director of Corruption Investigations at the Attorney General’s Office.

Iwan is the younger brother of former Sritex CEO Iwan Setiawan Lukminto, who had already been taken into custody in the same case. In total, prosecutors have named 11 suspects in the investigation.

According to Nurcahyo, investigators examined 277 witnesses and reviewed corporate documents before making the arrest. Evidence shows Iwan co-signed Sritex’s applications for working capital and investment loans to the creditors, but the funds were not used as outlined in the proposals.

Prosecutors said invoices and other financial documents attached to the disbursement requests were found to be fictitious. The scheme is estimated to have caused state losses of around Rp 1 trillion ($61 million).

BJB disbursed Rp 543 billion in loans to Sritex, while Bank DKI issued Rp 149 billion -- both without collateral. Prosecutors allege Iwan diverted part of the funds to settle personal debts and purchase property, resulting in Rp 692 billion ($42.3 million) in unpaid loans from the two banks alone.

Sritex, once a dominant player in Indonesia’s textile industry, was declared bankrupt in October 2023 after failing to settle a debt with another creditor. The company ceased operations in March 2025, ending its 58-year history and leaving more than 11,000 employees jobless, despite earlier attempts by management to secure a government bailout.

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