The Jakarta High Prosecutor’s Office has detained three executives linked to fintech platform KoinWorks as part of an investigation into an alleged fictitious lending case involving state lender Bank Rakyat Indonesia (BRI), with estimated losses of 600 billion rupiah ($34.5 million).
In a statement issued on Wednesday, prosecutors said the suspects—identified as BAA, BH, and JB—are executives of PT LAT-PT Lunaria Annua Teknologi—described as the owner of the KoinWorks platform.
“The determination of suspects is based on sufficient evidence in the alleged corruption case involving credit disbursement,” the Jakarta prosecutor’s office said.
According to investigators, BAA serves as operations director of PT LAT (2021–present); BH was president director from 2015 to 2022 and is currently a commissioner; while JB has served as president director since 2024.
Prosecutors alleged the three worked together to facilitate unlawful financing disbursements from BRI through the KoinWorks platform by bypassing proper credit assessments.
“The suspects, as management of PT LAT, collaborated based on improper feasibility analysis and unlawfully proposed and channelled financing from BRI to several borrowers,” the statement said.
Authorities said the loans were supported by manipulated collateral, including falsified invoices, and were issued without proper insurance coverage.
“The disbursement was carried out by manipulating collateral in the form of invoices and without insurance coverage, resulting in credit disbursement of approximately 600 billion rupiah,” prosecutors added.
The three suspects have been detained for an initial period of 20 days at detention facilities in Cipinang and Salemba.
The case is being pursued under Indonesia’s revised Criminal Code and anti-corruption laws, including provisions related to abuse of authority and state financial losses.
Investigators said they have also carried out searches, asset seizures, and evidence collection while expanding the probe into the potential involvement of parties within BRI and borrower entities suspected of manipulating loan applications.
“Investigators are continuing to develop the case by examining witnesses, experts and suspects, as well as tracing and seizing assets to recover state losses,” the statement said.
Separately, in April, a group of KoinWorks lenders filed a police report against the platform with Indonesia’s Criminal Investigation Agency (Bareskrim), alleging investment-related misconduct.
The complaint, submitted through legal counsel LQ Indonesia Law Firm, represented 94 lenders who claim to have suffered combined losses of around 47 billion rupiah ($2.7 million).
According to the filing, the investors had deployed funds on the platform between 2017 and 2024 before experiencing defaults last year, and have yet to receive full repayment despite waiting for more than a year. The group is seeking the return of their funds and has urged authorities to investigate the case thoroughly.
KoinWorks’ current challenges can be traced back to late 2024, when a major borrower defaulted on a large loan and allegedly became untraceable. The borrower—identified as Michael Timothy Hardjadinata, also known as MT, CEO of MTH Group and owner of CV MPP—was said to have secured around 365 billion rupiah in financing from KoinWorks using forged identity documents.
KoinWorks previously said the fraud case affected at least 34 financial institutions, including banks and other peer-to-peer lending platforms. The incident prompted the company to file a police report as it sought to recover funds and marked the beginning of mounting repayment issues that later spilled over into broader delays affecting lenders.
The case adds to a growing list of legal challenges faced by troubled fintech platforms in Indonesia, including Akseleran, Dana Syariah Indonesia, TaniHub, Investree, and CROWDE, as regulators tighten scrutiny on the sector.
Earlier in January, OJK ordered CROWDE into liquidation and detained its CEO, while the case is being handled by prosecutors after finding indications of falsified reporting and fictitious loan disbursements.
Meanwhile, enforcement actions in the case of Dana Syariah Indonesia (DSI) have continued to intensify. The police have detained a former director of the company as a suspect in an alleged fraud and money laundering case tied to fundraising activities that reportedly caused losses of up to 2.4 trillion rupiah.
Investigators have also named multiple suspects in the DSI case, including senior executives and its founder, as part of a probe into alleged misuse of investor funds through fictitious projects and misleading financial reporting.
The authorities are working with financial intelligence units and prosecutors to trace assets, block accounts, and pursue restitution for victims, while expanding the investigation into related parties.