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Last Updated:  Friday, 4 April, 2003, 09:50 GMT 10:50 UK
Former Indonesian central banker jailed
A former director of the Indonesian Central Bank has been jailed for three years after being found guilty of corruption.

A judge said Heru Supraptomo had carried out "acts of corruption" causing 6.36 trillion rupiah ($714.6m; 454.7m) of losses during his tenure as director of banking supervision at Bank Indonesia.

The judge told the court that during the 1997-1998 Asian economic crisis, Mr Supraptomo had failed to freeze the accounts of twenty-two banks and had allowed them to continue operating.

These banks have since been dissolved.

Asian crisis

In an effort to prevent the country's financial system from collapsing, Bank Indonesia gave out a total of $16.3bn of emergency loans to the country's private and regional banks during the Asian economic crisis.

State audits have since shown that more than 95% of these loans had been abused, and were used for foreign exchange speculation, lending to other businesses or even branch expansion.

Central Bank governor Sjahril Sabirin
Central Bank governor Sabirin was acquitted last year

Mr Supraptomo, who was also fined $2,250, is the second former director of the Bank Indonesia to be put in prison following last week's sentencing of fellow director Hendro Budianto.

Last August, an Indonesian court of appeal overturned a corruption conviction passed on the Central Bank governor, Sjahril Sabirin.

Mr Sabirin had been sentenced to three years in prison following a banking scandal in which state funds were allegedly diverted to the re-election campaign of former President Habibie in 1999.


SEE ALSO:
Court acquits Indonesian banker
29 Aug 02  |  Asia-Pacific
Indonesia's hopes for justice
26 Apr 02  |  Asia-Pacific


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