Today’s Legal Enlightenment (Sunday, December 12, 2021)-BAD CREDIT IS A CORRUPTION CRIME

The Director of a Limited Liability Company cooperates with the Director of a Bank whose capital is half private and half government, then the Limited Liability Company gets credit. It turned out that the Bank did not examine land guarantees and money bills which were later found to be fictitious. This credit then went bad and the Bank lost billions of Rupiah while the guarantee could not be executed because it was fictitious. The Debtor (Limited Liability Company)’s actions can be qualified as a corruption crime, ex. Article 1 (1) sub “a” of Law No. 3/1971 on Corruption. In this case, the Supreme Court did not apply “additional penalties” which stipulates “Replacement Money” which is the same amount as the property obtained from corruption.

Supreme Court Decision No. 2477 K/Pid/1988 dated March 20, 1993

Regards,

Fredrik J. Pinakunary