The panel of judges in its verdict stated that Dahlan was guilty of corruption.
"The court has sentenced him to two years in jail, and Rp100 million (US$7,503) of fine or a subsidiary of two months jail sentence," presiding judge Tahsin said, here, Friday.
The defendant, he continued, did not carry out his duty properly when he was the president director of PT PWU, which resulted in the company having to sell its assets at reduced value.
"The court has pronounced that the defendant will remain under the detention of the city," he declared.
Previously, the court charged Dahlan to six years in jail and Rp750 million (US$56,272) of fine or a subsidiary of six years in jail. He was also charged to pay Rp4.1 billion (US$307,623) as compensation.
East Java prosecutors office begun investigation into the case in 2015.
The sale of the East Java administrations assets took place in 2003 when Dahlan was still the president director of PT PWU.
The sale of asset sales violated regulations because they were sold at a price below the areas taxable value of property (NJOP) and without the approval of the local administration.
Dahlan was accused of causing state losses worth Rp11 billion (US$825,330).
Responding to the verdict, Dahlan said that he would file an appeal.
"This might be my foolishness, I was too eager to serve. My lawyers team has decided that I will file an appeal," Dahlan remarked.(*)