Central Bank Governor Burhanuddin Abdullah told a hastily-called news conference on Tuesday that he was surprised to hear he had been named as a suspect by the Corruption Eradication Commission, known by its Indonesian acronym KPK.

'I haven't officially received a letter from KPK notifying me as a suspect. As a human being and as a public official, I am surprised and sad about the news reports,' Abdullah told reporters.

'I feel that as a Bank Indonesia governor, I have always fulfilled my duties in good faith for the sake of the nation and the country,' Mr Abdullah added.

He declined to take any questions at the press conference.

Two KPK officials told Reuters that the central bank governor and two senior officials were suspects in its investigation.

But the KPK officials would not give any details.

Local media carried reports of the news on Tuesday.

KPK launched an investigation after the Supreme Audit Agency found evidence a foundation linked to Bank Indonesia had made illegal payments to members of parliament and paid for legal assistance for top central bank officials.

Anwar Nasution, head of the external auditor for state institutions and himself a former senior deputy governor at the central bank, said previously that in 2004 the YPPI foundation, which is linked to the bank, paid a total of 100 billion rupiah ($10.70 million) to members of parliament and for legal costs.

'In regards to the investigation related to Bank Indonesia, KPK will hold a news conference at 1300 on Wednesday,' KPK spokesman Johan Budi told reporters.

KPK, a special government body set up to investigate top government officials and business executives for graft, has stepped up its efforts to tackle corruption amid calls for bureaucratic reform and clean administration.

Governor Abdullah's current term ends in March, 2008.

President Susilo Bambang Yudhoyono must submit candidates for the next central bank governor to parliament.

It is common in Indonesia for government officials named as suspects to continue to work while investigations are under way.

Previous central bank governor Sjahril Sabirin was sentenced to three years in jail over a banking scandal by a lower Jakarta court in 2002.

A higher court overturned the conviction.

The scandal, which centred around PT Bank Bali, erupted in 1999 over a 546 billion rupiah (then S$99 million) fee Bank Bali paid to a firm with links to the then-ruling Golkar party to recover interbank claims. -- REUTERS