World · East Asia & Pacific · 15 hrs ago
Two Malang Bank Executives Face Charges Over Alleged $3.4 Million Scheme
Indonesia’s financial regulator has sent two bank executives to prosecutors over alleged banking crimes at PT BPR DCN in Malang, East Java.
The executives, the bank’s president director and a director, are accused of taking gold held as collateral and creating 71 fake loans worth 15.6 billion rupiah.
Investigators also allege unrecorded cash withdrawals, with about 5.8 billion rupiah still unaccounted for, and deposits from 37 customers that were not recorded.
The total value of transactions linked to the allegations is about 54.9 billion rupiah, but that figure is not an established loss.
The case matters because the alleged conduct involved customer funds and assets held by a bank.
The case file was declared complete on October 14, 2026, and the executives could face up to 15 years in prison if convicted.
Indonesia’s Financial Services Authority says two executives of PT BPR DCN in Malang are suspected of banking offenses involving transactions totaling about Rp54.9 billion.
The suspects are ZNA, the bank’s president director, and APW, its director.
The alleged offenses include unrecorded gold collateral, fictitious loans and cash withdrawals that were not recorded in the bank’s books.
The authority said the total transaction value is not an established amount of loss.
The case file was declared complete on October 14, 2026, and the suspects and evidence were handed to prosecutors on October 30.
- Who
- ZNA, president director of PT BPR DCN, and APW, its director.
- What
- They are suspected of banking offenses, including fictitious loans and unrecorded transactions.
- When
- The alleged conduct took place from January 2020 to June 2024; the suspects were handed to prosecutors on October 30, 2026.
- Where
- PT BPR DCN in Malang, East Java; the case was handed to prosecutors at the Batu District Prosecutor’s Office.
- Why
- Not stated
This story does not have two clearly opposing sides.
Investigators say cash advances were withdrawn without being recorded in the company’s books.
The two executives allegedly recorded 71 fictitious credit facilities in the names of 31 debtors, totaling Rp15.6 billion.
The executives allegedly took gold and precious-metal collateral worth about Rp600 million without recording it.
Prosecutors declared the case files complete.
The suspects and evidence were handed to prosecutors at the Batu District Prosecutor’s Office.
- Suspects
- ZNA and APW, executives of PT BPR DCN
- Fictitious loans
- 71 facilities for 31 debtors, totaling Rp15.6 billion
- Gold collateral
- About Rp600 million
- Unaccounted cash advances
- About Rp5.8 billion remained unaccounted for
- Total transaction value
- About Rp54.9 billion; not an established loss
- Maximum penalties
- 15 years in prison and a fine of Rp200 billion
What people are saying
The credit facilities were allegedly granted without the debtors’ knowledge and/or the funds disbursed were not used by the debtors concerned.