BLITAR – Prosecutors in Blitar are accelerating preparations for the trial of a corruption case involving non-performing loans at the city-owned Rural Bank (BPR) in 2022. The case centers on alleged irregularities in a seasonal loan scheme that caused financial losses to the regional government-owned lender.
Investigators from the Special Crimes Unit of the Blitar District Prosecutor’s Office are currently compiling evidence and witness statements into a complete case dossier. The move marks the final stage before prosecutors submit the file for prosecution and court proceedings.
“We are still in the dossier preparation stage. We are consolidating all investigation results into a complete case file before submitting it to the public prosecutor,” Special Crimes Unit chief Arifullah said on Wednesday.
The investigation focuses on suspected corruption linked to problematic loans issued by Perumda BPR Kota Blitar in 2022. Authorities allege that the lending process violated banking procedures and ultimately resulted in bad debts.
Arifullah said prosecutors will rely on findings from an investigative audit conducted by the Blitar City Inspectorate. The local government’s internal audit agency carried out the review at the request of prosecutors to calculate potential state financial losses.
However, he declined to disclose whether the final audit findings matched investigators’ initial estimates. According to him, the court will determine the validity of the figures during the trial process.
“We asked the inspectorate to calculate the state losses. Therefore, we use the audit findings they produced. The court will later examine and assess those figures,” he said.
Earlier, Blitar City Inspector Ratih Dewi Indarti confirmed that her team had completed the investigative audit after a two-week review approved by the mayor. The inspectorate has already submitted the audit results to prosecutors.
Members of the audit team are expected to testify as expert witnesses during hearings at the Anti-Corruption Court scheduled for July.
The case emerged after investigators uncovered alleged irregularities in a Rp255 million seasonal credit facility issued in 2022. Prosecutors suspect the loan approval process ignored key banking principles commonly known as the 5C analysis: character, capacity, capital, collateral, and condition.
Investigators believe the borrower used the working capital loan for personal consumption rather than business activities. The loan later became fully non-performing in 2023.
The Blitar District Prosecutor’s Office has named two suspects. The first is ED, a resident of Mojokerto and former director of Perumda BPR Kota Blitar in 2022. Authorities have already placed him in detention.
The second suspect is DM, a resident of Blitar Regency. Investigators say he acted as the borrower in the disputed loan transaction.
Prosecutors expect the case to move to court soon. Investigators are now completing the final administrative requirements before filing charges.