Budi Mulya Sentenced to 10 Years' Imprisonment

Jakarta (Antara) - Former deputy governor of Bank Indonesia Budi Mulya was sentenced on Wednesday to 10 years' imprisonment by the anti corruption court with a fine of Rp500 million or an additional jail term of 5 months. The court found Budi guilty of corruption in granting short term loan facility (FPJP) to scandal hit Bank Century and declaring the the scandal hit lender as a failed bank with systemic impact in 2008. Earlier the prosecutor demanded a 17 years' imprisonment with a fine of Rp800 million and a compensation of Rp1 billion or additional jail terms of 8 months and three years respectively for Budi. Presiding judge Aviantara said Budi Mulya approved the short term loan facility not with good intention but for own benefit and to save a fund of a foundation (YKKBI) of the central bank employees deposited at Bank Century. The foundation had Rp83 billion deposited at the bank, before it collapsed in 2008. The foundation was one of the bank's clients whose fund was returned by the bank using the short term loan facility of Rp689.39 billion. The court also found Budi guilty of receiving a loan of Rp1 billion from Robert Tantular one of the bank owners, after approving the short term loan facility. The court said Budi Mulya caused a loss of Rp8.5 trillion in state fund including the short term loan facility and Rp6.7 trillion in bail out fund by the state owned Deposit Insurance Agency (LPS). (*)