Cynthia Ezegwu
Indonesian authorities have detained a Chinese real estate executive wanted in connection with the default of a $138 million corporate loan, officials said on Tuesday.
The 58-year-old man, identified only by his initials, WZ, was arrested on Thursday on Batam Island, in western Indonesia, following a request from the Chinese embassy in Jakarta, Agus Waluyo, Indonesia’s immigration intelligence director, confirmed.
Agus said WZ was a former president and director of a Chinese real estate company that failed to repay 980 million yuan ($137.8 million) in loans. The default prompted a police investigation in China, which led to WZ being declared a financial crime suspect and issued a wanted notice after he fled the country.
According to Indonesian authorities, WZ had moved across several countries in Asia since August before entering Indonesia on October 7. He is currently being held by the Directorate General of Immigration for further investigation. Indonesian officials are coordinating with their Chinese counterparts regarding the case.
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China’s property sector, which boomed for decades due to rapid urbanisation and rising living standards, has faced increasing financial strain since 2020 after Beijing imposed regulations to curb excessive borrowing. The sector’s struggles have contributed to the collapse of major firms, including Evergrande, and have posed broader risks to the Chinese economy.
Indonesia has in recent months detained and deported other individuals wanted in their home countries, with a particular focus on those involved in online scams. WZ’s detention marks another high-profile enforcement in the region.