Jiwasraya - Fine & Life Imprisonment

Prosecutors have sought sentences ranging from 18 years to life in prison for former executives of state insurer PT Asuransi Jiwasraya for their alleged involvement in graft and money laundering that has resulted in trillions of rupiah in state losses. 

The prosecution demanded a life sentence and Rp 1 billion (US$67,256) fine for former Jiwasraya financial director Hary Prasetyo, 20 years and a Rp 1 billion fine for former president director Hendrisman Rahim, and 18 years and a Rp 1 billion fine for former finance and investment division head Syahmirwan. Prosecutors said that the three defendants were guilty of corruption that caused losses of Rp 16.8 trillion in state funds.

“[The prosecution] demands that the panel of judges officially and firmly convict the defendant, Hary Prasetyo, of several acts of corruption,” public prosecutor Yanuar Utomo.

According to the prosecution, Hary, Hendrisman and Syahmirwan had violated articles 2 and 18 of Law No. 31/1999, as amended by Law No. 20/2001 on corruption eradication, and Article 55 of the Criminal Code. “[The crime] was a deliberate, structured and massive act that led to the financial difficulties befalling Jiwasraya customers,” Yanuar said.

Other defendants in the case are publicly listed property firm PT Hanson International president director Benny Tjokrosaputro, publicly listed mining company PT Trada Alam Minera president commissioner Heru Hidayat and PT Maxima Integra director Joko Hartono Tirto. 

Jiwasraya was first accused of mismanagement when it invested its premium revenue from the JS Saving Plan, one of the company’s insurance products, into so-called pump-and-dump stocks. As a result, it failed to pay out Rp 16 trillion (US$1.1 billion) in matured policies due in February to its policyholders. In June, the Attorney General’s Office named 13 asset management companies and a Financial Services Authority official suspects in the Jiwasraya case.