Isa Rachmatarwata, the Director General of Budget at Indonesia’s Finance Ministry, has been named a suspect in a major corruption case involving the mismanagement of investment funds by state insurer Asuransi Jiwasraya. The Attorney General’s Office (AGO) announced the development on Friday, highlighting Isa’s alleged role in causing substantial financial losses to the state.
Abdul Qohar, Director of Investigations at the AGO’s Special Crimes Unit, confirmed that sufficient evidence had been found linking Isa to criminal acts during his tenure as Head of Insurance at the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) from 2006 to 2012. The corruption case stems from Isa’s involvement in the development and promotion of Jiwasraya’s “Saving Plan” program, which is believed to have led to significant losses for the company. Investigations revealed that these actions contributed to state losses totaling Rp 16.8 trillion (approximately $1 billion) due to irregularities in Jiwasraya’s financial recovery and investment programs between 2008 and 2018.
Isa has been detained at the AGO’s Salemba Detention Center for a 20-day period as the investigation continues. The Finance Ministry has expressed its respect for the ongoing legal proceedings, with spokesman Deni Surjantoro noting that no further details would be provided about Isa’s case or the appointment of a potential replacement.
A Landmark Case in Indonesia’s Fight Against Corruption
The Jiwasraya scandal has become one of Indonesia’s largest financial controversies, marking a significant moment in the country’s efforts to combat corruption. This case is particularly notable as it is the first time in Indonesia’s judicial history that multiple defendants have been sentenced to life imprisonment in the same corruption trial.
Key figures in the case, including prominent stockbroker Benny Tjokrosaputro, former president director of Hanson International, and his associate Heru Hidayat, chief commissioner of Trada Alam Mineral, were both sentenced to life for orchestrating market manipulations that led Jiwasraya into poor investment decisions. Their actions were found to have caused financial losses amounting to Rp 16.81 trillion.
Alongside Benny and Heru, four other individuals were sentenced to life imprisonment: Hendrisman Rahim, former president of Jiwasraya; Hary Prasetyo, the former finance director; Syahmirwan, former head of the investment and finance division; and Joko Hartono Tirto, director of Maxima Integra.
Isa Rachmatarwata’s Career Path
Isa Rachmatarwata has been a long-serving official at the Finance Ministry, starting his career in 1991. Initially tasked with overseeing pension fund supervision, he later served as the Chair of the Government Guarantee Program Implementation Team following the dissolution of the Indonesian Bank Restructuring Agency in 2004.
In 2006, Isa was appointed Head of the Insurance Bureau at Bapepam-LK, which later merged with the Financial Services Authority (OJK). He continued to rise through the ranks, joining the Fiscal Policy Agency in 2013. Isa was appointed Director General of State Assets in 2017 and later became Director General of Budget in 2021, a role that involves managing the nation’s financial policies.
The Jiwasraya case remains a key milestone in Indonesia’s legal and financial landscape, drawing attention to the need for accountability in the management of state funds.
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