‘Trillions of rupiah’ Indonesia’s central bank channeled to lawmakers allegedly misused: Anti-graft agency

CNA
01-23

JAKARTA: Trillions of rupiah channelled by Indonesia’s central bank to some lawmakers under a corporate social responsibility (CSR) programme were allegedly misused, said the country’s anti-graft agency.

“We are talking about trillions (of rupiah) but the exact amount will be announced later,” said Asep Guntur, director of investigations at the Corruption Eradication Commission (KPK) on Tuesday (Jan 21), as quoted by news agency CNN Indonesia. One trillion rupiah is equivalent to US$61.55 million.

KPK’s Asep said its investigation focuses on whether the funds were misappropriated or used for the intended CSR programmes. 

“If the funds were used appropriately for CSR programmes, such as construction of school buildings, then there is no issue, but we have indications of misuse,” Asep was quoted as saying by the Jakarta Globe.

The lawmakers are members of the House of Representatives or DPR, one of two elected chambers of the People’s Consultative Assembly, which is the national legislature of Indonesia. 

The DPR has 11 commissions and those involved in the Bank Indonesia corruption probe are reportedly members of Commission XI, which oversees finance matters, national development planning and the financial services sector of the country. 

The KPK has not named any suspects yet. But several lawmakers and central bank officials have been questioned, including National Democratic Party (NasDem) politician Satori. 

Satori reportedly admitted to receiving funds from Bank Indonesia to finance social programmes for constituents in his electoral district after he was questioned on Dec 27.

He also claimed that all members from Commission XI had in fact received similar funds through a foundation. 

KPK’s Asep, however, told CNN Indonesia that Satori had allegedly misused the funds in his electoral district of Cirebon in West Java. 

The anti-graft agency, which raided Bank Indonesia’s Jakarta headquarters and the office of central bank governor Perry Warjiyo on Dec 16, plans to release further details as the investigation progresses. 

The agency first said in September last year it was investigating CSR programmes run in 2023 by the country’s financial regulators, including the central bank, for potential misuse of funds, according to media reports.

“For example, (if we find that) only 50 per cent of the CSR fund was used (for social programmes) and the remaining 50 per cent was not used, the remaining 50 per cent could have been used for personal gain,” Asep said at the time.

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