Indonesian anti-graft body raids central bank headquarters in probe of improper CSR donations
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Investigators will question all central bank officials relevant to the probe.
PHOTO: REUTERS
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JAKARTA – Indonesia’s anti-graft agency raided the headquarters of the central bank in Jakarta on Dec 16 in relation to a probe into alleged mishandling of a corporate social responsibility (CSR) programme, the agency and the central bank said.
Among offices raided was that of Bank Indonesia (BI) governor Perry Warjiyo, where investigators took documents and electronic devices related to the programme, deputy chief investigator Rudi Setiawan told reporters on Dec 17.
The anti-graft agency suspects that the central bank donated some of its CSR funds to several foundations improperly, Mr Setiawan said.
“We’ve already had two suspects that we allege had received funds from BI’s CSR,” Mr Setiawan said.
He declined to provide names or the size of the funds, but he said the money flow is “quite big”.
Investigators will question all central bank officials relevant to the probe, he said.
BI said it respected the investigation and would cooperate with the anti-graft agency.
The agency in September said it was investigating CSR programmes run by financial regulators in 2023, including the central bank, for potential misuse of funds for personal gain, according to local media.
Mr Warjiyo in September said BI has cooperated with the probe, but defended the governance of its CSR funds.
“We can ensure that CSR or BI’s social programmes have strong regulatory governance, and their decision-making process is through stages,” Mr Warjiyo told reporters at the time.
BI typically donates to education, social empowerment or religious foundations.
The beneficiaries are selected following a survey and must meet a set of requirements, Mr Warjiyo said at the time, adding that the board of governors decides on the size of such donations.
The central bank allocated 1.6 trillion rupiah (S$134 million) in 2023 for social programmes and projects supporting micro-, small- and medium-sized enterprises, as well as price stabilisation measures, according to BI budget documents provided to Parliament.
There was no breakdown of or details about the use of the funds.
The raid happened a day before the central bank started its two-day policy meeting on Dec 17, with its decision due to be announced on Dec 18. It is expected to keep policy rates unchanged. REUTERS
