Jakarta. Indonesia’s Attorney General’s Office on Thursday seized a hotel in South Jakarta as part of an expanding corruption investigation involving Sri Rejeki Isman (Sritex), one of the country’s largest textile producers.

The seized asset, Ayaka Suites Hotel, is located on Karet Pedurenan Street in the Karet Kuningan area of Setiabudi district. Prosecutors said the property is linked to Iwan Kurniawan Lukminto, the former deputy chief executive of Sritex and the main suspect in the case.

Attorney General’s Office spokesman Anang Supriatna said investigators had inspected the hotel’s physical condition, verified administrative documents, and posted official seizure notices in publicly visible areas.

“This seizure is part of law enforcement measures in an alleged money laundering case involving suspect IKL, with the predicate offense being corruption related to bank credit facilities,” Anang said, referring to Iwan by his initials.

Prosecutors suspect the hotel was used as a vehicle to launder funds derived from corrupt practices. Due to the property’s high economic value and significant maintenance costs, the hotel has been handed over to the Asset Recovery Center for professional management during the legal process.

Iwan was detained in mid-August for allegedly misusing credit facilities provided by several regional government-owned banks, including Bank BJB of West Java and Banten, Bank DKI of Jakarta, and Bank Jateng of Central Java. He is the younger brother of former Sritex chief executive Iwan Setiawan Lukminto, who has also been taken into custody in the same investigation.

In total, prosecutors have named 11 suspects in the case. Investigators said invoices and other financial documents submitted to support loan disbursement requests were found to be fictitious. The scheme is estimated to have caused state losses of around Rp 1 trillion ($61 million).

The corruption probe followed a court ruling that declared Sritex bankrupt after the company accumulated massive unpaid debts.