TEMPO.CO, Jakarta - The Financial Services Authority (OJK) said it had flagged weaknesses in Bank Woori Saudara Indonesia 1906 Tbk’s business processes during a 2023 inspection, specifically related to negotiable letter of credit (LC) transactions with a debtor. The bank is now under scrutiny over alleged fraud amounting to US$78.5 million, or roughly Rp1.28 trillion.
OJK's Chief Banking Supervisor Dian Ediana Rae stated the regulator may escalate the investigation if sufficient preliminary evidence of fraud or internal involvement emerges. "OJK had warned the bank of potential risks in the debtor’s LC transactions due to business process weaknesses identified during our 2023 examination," Dian said in a written statement received by Tempo on Thursday, June 12.
According to Dian, Bank Woori Saudara has reported the issue to OJK and is conducting an intensive internal probe. The bank has suspended internal personnel suspected of involvement, hired a law firm, initiated talks with the debtor to settle obligations, and is preparing to report the case to the police on suspicion of fraud.
Wuryanto, Director at Bank Woori Saudara, denied that the losses total Rp1.28 trillion, clarifying that the figure reflects the total LC transaction value with the creditor.
“The actual losses are still under review and cannot be confirmed until the internal investigation is completed," he stated in a disclosure to the Indonesia Stock Exchange (IDX) on Wednesday evening, June 11.
He added that the internal audit team is still investigating the case to identify process weaknesses, rule violations, and other potential misconduct. Despite the ongoing probe, Wuryanto reaffirmed the company’s commitment to improving governance and internal controls. “To ensure this doesn’t happen again in the future,” he said.
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