JAKARTA – PT Bank Pembangunan Daerah Jawa Timur Tbk (BJTM) has affirmed its commitment to respecting the legal process and is cooperating with law enforcement regarding allegations of fraudulent loans involving PT Inti Daya Group.

"This case was revealed following an investigation by the Financial Services Authority (OJK) and BJTM's Internal Audit Unit (SKAI). The management has also reported the case as part of its commitment to upholding good corporate governance (GCG)," said Fenty Rischana, BJTM's Corporate Secretary, in a disclosure on Friday (21/2).

In response, BJTM plans to recover assets and provision for losses in its 2024 financial report to ensure that the company’s performance remains unaffected.

Despite facing this legal case, the management assured that its operations and services to customers would continue as usual. On Monday (24/2), BJTM's share price fell following reports of the fictitious loan case involving its Jakarta branch leader.

The case stems from allegations of loan manipulation granted to PT Inti Daya Group, which involved nominee companies and fictitious collateral in the form of work orders (SPK) and invoices from state-owned enterprises (SOEs).

The Jakarta High Prosecutor’s Office (Kejati DK Jakarta) has named three suspects, including the head of BJTM's Jakarta branch and two executives from PT Inti Daya Group. The case is estimated to have caused losses amounting to IDR 569.4 billion.

During the first trading session on Monday (24/2), BJTM's shares weakened by 2.8%, dropping 15 points to IDR 520 per share, compared to IDR 535 per share at the opening. (DK/ZH)