December 19, 2024
JAKARTA – The Corruption Eradication Commission (KPK) has named two suspects in a graft case related to Bank Indonesia’s (BI) corporate social responsibility (CSR) funds, with the central bank’s governor promising to cooperate in the investigation.
The antigraft body had named two individuals suspects “several months ago”, KPK deputy for enforcement and execution Insp. Gen. Rudi Setiawan said on Tuesday.
“[They] allegedly accepted some of the illicit money from BI’s CSR programs,” Rudi said, as quoted by kompas.id.
However, the deputy stopped short of mentioning the identities or initials of the suspects. Rudi hinted that one of the suspects is a House of Representatives lawmaker but declined to mention further details on their identity.
On Monday evening, graft busters raided the central bank’s headquarters in Jakarta in relation to a probe into the alleged mishandling of the CSR programs. Among the raided places was the office of BI governor Perry Warjiyo, where investigators took documents and electronic devices deemed related to the program, as reported by Reuters.
Rudi said that the investigators were planning to summon Perry for an interrogation at the antigraft body’s headquarters in Jakarta.
“We are classifying [the evidence] and verifying it with the person concerned,” Rudi said, referring to Perry, as quoted by tempo.co.
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In addition to interrogating Perry, Rudi said that graft busters might raid Financial Services Authority (OJK) offices.
In September, the antigraft body had told the press that it had been investigating some CSR programs run by financial regulators, including BI and the OJK, since 2023 for potential misuse of funds that enriched some officials and other individuals involved in the programs.
BI allocated Rp 1.6 trillion (then US$105 million) in 2023 for social programs and projects supporting micro, small and medium enterprises (MSMEs), as well as price stabilization measures, according to BI budget documents as reported by Reuters.
The KPK alleged that the funds were disbursed to the OJK and to other foundations that “inappropriately received the money”, according to Rudi.
By the book
In a statement issued on Tuesday, BI spokesperson Ramdan Denny Prakoso confirmed the raid took place on Monday evening, with the KPK investigation team aiming to find more evidence to complete its dossier in the case.
“Bank Indonesia respects the legal procedures committed by the KPK according to the prevailing regulations, supports the investigation and will cooperate with the KPK,” the spokesperson wrote.
Perry reasserted the central bank’s position during a press briefing in Jakarta on Wednesday, highlighting that he and other BI officials had clarified the disbursement of the institution’s social programs.
The governor defended the governance of BI’s CSR funds, saying that the money is only given to foundations declared valid and that have submitted their plan on how they will use the money. The foundations are also required to regularly report with BI’s central office in Jakarta or regional representative offices on the progress of the incentives’ usage.
The bank’s board of governors decided on the budget to be allocated for the social programs, while the plans are being implemented by work units within BI.
Perry acknowledged that the investigation may affect the situation in the market and the exchange rate.
“Despite the news, BI is committed to maintaining exchange rate stability through [market] intervention, purchasing government bonds and other measures,” the governor said.
New lineups
The Monday raid took place only hours after President Prabowo Subianto inaugurated the new leaders and members of the supervisory council of the antigraft body at the State Palace, roughly 1.5 kilometers from BI’s central headquarters in Central Jakarta.
The new KPK chairman, three-star police general Setyo Budiyanto, was sworn into his new position along with deputy chairs Fitroh Rohcahyanto, Ibnu Basuki Widodo, Johanis Tanak and Agus Joko Pramono.
Read also: New KPK leaders prompt pessimism over fight against graft
Despite being inaugurated on Monday, the new leaders will take office on Friday after the official transfer of power from the previous KPK leaders, whose terms will end on Dec. 20.
The KPK will also see new members for its supervisory council. Judge Gusrizal will be the council’s chair while Wisnu Baroto, Sumpeno, Benny Jozua Mamoto and Chisca Mirawati will serve as council members.