The South Jakarta District Prosecutor’s Office has handed over nine defendants—six individuals and three corporate entities—along with all evidence, to the public prosecutor in the corruption and money-laundering case involving investment funds from MDI Ventures and BRI Ventures into TaniHub and its affiliates.
The individual defendants—IAS, ETPLT, DSW, AAH, NW, and WG—are accused of violating Article 2(1), subsidiary Article 3 of Indonesia’s Anti-Corruption Law, which carries a maximum sentence of 20 years. In addition, IAS and ETPLT are also charged under Article 3 or Article 4 of the Anti-Money Laundering Law (TPPU), which also carries a maximum penalty of 20 years.
Prosecutors allege that former TaniHub Group directors, IAS and ETPLT, manipulated the company’s financial statements to secure investment from MDI Ventures and BRI Ventures. AAH allegedly failed to conduct proper investment analysis, while DSW is accused of unlawfully approving investment disbursements from MDI. NW and WG allegedly authorised illegal investment disbursement from BRI Ventures.
“The investments released total $25 million, comprising $20 million from MDI and $5 million from BRI Ventures,” said Marcello Bellah, head of the South Jakarta District Attorney, in a statement issued by the prosecutors on Friday.
Authorities seized electronic devices, bank accounts, and four land plots in Bandung and the Greater Jakarta area valued at more than 80 billion rupiah.
The individual defendants are now detained for 20 days at Cipinang Detention Center in East Jakarta. Three individuals—DSW, IAS, and ETPLT—have been detained since July 28, while the remaining—AAH, NW, and WG—have been detained since September 4.
Prosecutors are preparing the indictment for submission to the Corruption Crime Court at the Central Jakarta District Court.
Last month, the prosecutor named three companies as suspects in the TaniHub investment fraud case, namely PT THI, PT TSI, and PT TFMI, which are subsidiaries of TaniHub Group. The three allegedly benefited from the misuse of investment funds.
Penalties for corporations found guilty of corruption include fines of up to 1 billion rupiah, restitution equivalent to illicit gains, and, in certain cases, corporate dissolution, according to Indonesia’s law.
