Background The burglary case at BNI Bank became a problem that shocked the Indonesian people in late 2003, when BNI Bank suffered a loss of IDR 1.7 trillion, presumably occurred due to a fictitious export transaction via Letter of Credit (abbreviated as L/C). This case is phenomenal because in addition to being detrimental to the finances of BNI Bank, it also impacts state finances at the macro level.A. Brief Profile of BNI Bank BNI Bank was founded in 1946. This public company is majority owned by the government of the Republic of Indonesia. BNI Bank is the third largest bank in Indonesia after Bank Mandiri and BCA with total assets in 2003 of IDR. 131.49 trillion.VisionTo become a proud nationwide bank that excels in service and performanceMissionMaximize stakeholder value by providing financial solutions focused on corporate, commercial and consumer market segmentsCorporate Culture1. BNI is a commercial bank with public company status.2. BNI is oriented towards the market and national development.3. BNI continually builds mutually beneficial relationships with customers and business partners.4. BNI recognizes the role and respects the interests of employees.5. BNI is committed to creating a spirit of solidarity so that employees carry out their duties and obligations in a professional manner.B. Case Summary: This horrendous case first came to light when BNI conducted an internal audit in August 2003. The audit found that there was an insanely large euro position, worth €52 million. The large movements in euro positions were suspicious because the euro circulation in Indonesia was limited and the euro's performance was good at that time. From the audit, it was finally discovered that there was a large opening of L/Cs and the state would lose more than a trillion rupees. The explanation regarding BNI's fictitious L/C is as follows: - Time of accident: July 2002 to August. 2003- Bank opened: Rosbank Switzerland, Dubai Bank Kenya Ltd, The Wall Street Banking Corp and Middle East Bank Kenya Ltd. - Total L/C value: $166.79 million and €56.77 million or approximately Rp. 1.7 trillion- Beneficiary/L/C Recipient: 11 companies of the Gramarindo Group and 2 companies of the Petindo Group- Export goods: quartz sand and residual oil- Export destination: Congo and Kenya- Scheme: L/CKronology usage: 1. BNI Bank branch Kebayoran Baru has received 156 L/Cs from the issuing banks: Rosbank Switzerland, Dubai Bank Kenya Ltd, The Wall Street Banking Corp and Middle East Bank Kenya Ltd. As BNI does not yet have direct correspondent relationships with some of the banks mentioned above, uses intermediary banks, namely American Express Bank and Standard Chartered Bank.2. The Beneficiary submits to BNI a request for discount on a forward export note (export credit) on the above L/CL/C and is approved by BNI.