Indonesia Hands Down Convictions in Graft Case

Wall Street Journal, Tom Wright, June 18 -- A relative of President Susilo Bambang Yudhonoyo was among four former central-bank officials convicted of corruption and sentenced to prison on Wednesday, in a further sign that Indonesia is taking action against graft.

Mr. Yudhoyono promised to clean up government since becoming the nation's first democratically elected president in 2004.

The trial of Aulia Pohan -- a former Bank Indonesia deputy governor whose daughter is married to Mr. Yudhoyono's son -- for his role in the misuse of 100 billion rupiah ($10 million) in central-bank funds drew scrutiny from antigraft campaigners and the media because of the defendant's ties to the ruling elite.

Mr. Pohan and three other defendants tried with him were convicted for their roles in channeling central-bank funds to lawmakers in a bid to influence banking legislation.

Indonesia's anticorruption court, a special institution set up to try graft cases outside the country's legal framework, sentenced Mr. Pohan to 4½ years in prison and ordered him to pay 200 million rupiah in fines. The other defendants all received the same fine, as well as prison sentences of four years or 4½ years.

Mr. Pohan's lawyer said his client will appeal the ruling. The other three defendants said they will appeal the verdicts, according to Reuters.

In October, the court sentenced former central-bank governor Burhanuddin Abdullah to five years in prison for his role in the corruption scandal. In February, Indonesia's high court rejected Mr. Abdullah's appeal and extended his sentence by six months.

Mr. Yudhoyono is seeking re-election in a July 8 national vote and is the front-runner, in large part due to the popularity of his antigraft campaign, which has resulted in convictions and prison terms for lawmakers, regional governors and central-bank officials.

The president will go after higher-profile suspects if he wins re-election, said Dino Djalal, a spokesman for Mr. Yudhoyono.

Efforts to weed out graft, which remains endemic in many Indonesian institutions including the parliament, police and judiciary, according to watchdog Transparency International, face roadblocks from vested interests.

The anticorruption court, set up in 2004, has a record of convictions. Its mandate expires in December and the parliament, some of whose members face continuing corruption probes, has yet to pass legislation needed to ensure its continued existence.