OCBC unit files police report against Gudang Garam owner

THE Indonesian arm of OCBC Bank filed a police report against a billionaire owner of cigarette-maker PT Gudang Garam.

PT Bank OCBC NISP filed the report against Susilo Wonowidjojo, an owner and president director of Gudang Garam, on fraud allegations relating to some 232 billion rupiah (S$20 million) in troubled loans, the lender’s lawyer Hasbi Setiawan said in a statement on Friday (Feb 3). 

The bank disbursed the loan in 2016 to a wig-making company owned by Wonowidjojo’s family, Setiawan added. The case involves a total of one trillion rupiah of funds when including loans from other lenders, he said.

A representative for Gudang Garam didn’t immediately respond to requests for comment and calls to the company’s office were not answered. Gudang Garam shares fell 5.7 per cent on Friday in their biggest drop since Jan 5, ending a four-day gain of nearly 16 per cent. OCBC NISP shares gained 1.3 per cent.  BLOOMBERG