JAKARTA: Indonesian authorities said on Tuesday (Nov 18) they had detained a Chinese real estate executive wanted over the default of a US$138 million corporate loan.
The 58-year-old man, identified only as WZ, was arrested in Batam, Riau Islands, on Thursday after a request was received from the Chinese embassy in Jakarta, said Agus Waluyo, Indonesia’s immigration intelligence director.
The immigration directorate general said the man was a former president and director of a Chinese real estate company that had failed to repay 980 million yuan ($137.8 million) in loans.
The loan default led to a police investigation that identified him as a financial crime suspect, it said, and a wanted notice was issued after he fled China.
Agus said the man had moved around several countries in Asia since August before entering Indonesia on Oct 7.
“WZ has been detained for further investigation by the Directorate General of Immigration,” Agus told a news briefing, adding that Indonesian authorities had been in touch with Chinese government officials.
China’s property sector boomed as it was propelled by decades of rapid urbanisation and rising living standards. However, its fortunes reversed in 2020 when Beijing imposed new regulations seeking to limit excessive borrowing.
Real estate woes have hit the Chinese economy heavily since then and debt struggles have led to the collapse of major market players such as Evergrande.
Indonesia has detained and deported several other people wanted in their home countries in recent months, although the focus across South-East Asia has been heavily on those involved in online scams. – The Jakarta Post/ANN