Jakarta. The Corruption Eradication Commission (KPK) has uncovered a potential state loss of Rp 11.7 trillion ($710 million) linked to credit facilities issued by the Indonesia Eximbank, also known as Lembaga Pembiayaan Ekspor Indonesia (LPEI), to 11 debtors. The anti-graft body is currently conducting further investigations.

"The total credit granted, which also represents the potential state loss, is approximately Rp 11.7 trillion," KPK’s Acting Director of Investigations, Budi Sokmo Wibowo, said at the agency’s headquarters in Jakarta on Monday.

KPK has been investigating the case since March 2024, focusing on 11 debtors who received loans from LPEI. Recently, the agency named five suspects in a case involving LPEI's credit facility for a private company, Petro Energy (PE).

“The investigation into the remaining 10 debtors is still ongoing, and we will announce further developments in due course,” Budi said.

The five suspects identified by KPK include two LPEI Managing Directors, DW and AS; Petro Energy owner JM; its President Director NN; and its Finance Director SMD. They were officially declared suspects on February 20, 2025.

KPK suspects LPEI executives had a conflict of interest in approving credit for Petro Energy. Allegedly, there was an initial agreement between the bank’s directors and the company to facilitate loan approvals.

Furthermore, LPEI executives reportedly failed to oversee how the credit was used, instructing subordinates to continue disbursing loans even when they were deemed unfeasible. Petro Energy has been receiving credit from LPEI since October 2015.

"The total loan granted was approximately $60 million, or around Rp 900 billion, disbursed in three installments," Budi explained.

The first installment of around Rp 297 billion was given on October 2, 2015, followed by Rp 400 billion on February 19, 2016, and Rp 200 billion on September 14, 2017. However, KPK asserts that Petro Energy was not eligible for the credit.

Creditworthiness Issues and Fraudulent Documents

According to KPK, LPEI directors were aware that Petro Energy’s current ratio was below 1, specifically at 0.86, indicating the company lacked sufficient assets to cover short-term liabilities. This made it unlikely for Petro Energy to repay its loans.

"In short, their income was smaller than their obligations to LPEI," Budi said.

Additionally, Petro Energy allegedly submitted fraudulent contract documents to secure the loans. The company is also suspected of misusing the credit for purposes not aligned with the loan agreement.

KPK has coordinated with the Financial and Development Supervisory Agency (BPKP) to calculate the state losses. So far, the estimated loss for Petro Energy alone stands at $60 million, while losses from other debtors are still under investigation.