17-12-2024 (JAKARTA) Indonesia’s anti-corruption agency conducted a raid at Bank Indonesia’s headquarters in Jakarta on Monday, investigating alleged irregularities in the central bank’s corporate social responsibility programme.
Sources close to the investigation, speaking on condition of anonymity, revealed that the office of Bank Indonesia Governor Perry Warjiyo was among the areas searched during the operation. The Corruption Eradication Commission (KPK) confirmed the raid but remained tight-lipped about specific details.
Bank Indonesia issued a statement pledging full cooperation with the investigation, though its spokesperson did not immediately comment on the search of Governor Warjiyo’s office.
The probe stems from earlier investigations launched in September, when the anti-graft body began scrutinising CSR programmes managed by various financial regulators throughout 2023, amid concerns over potential misappropriation of funds for personal benefit.
Governor Warjiyo had previously defended the bank’s CSR governance structure during a September press conference, emphasising the robustness of their regulatory framework. “Our social programmes operate under strict governance protocols, with a thorough decision-making process,” he stated at the time.
The central bank’s CSR initiatives primarily focus on educational support, social empowerment, and religious foundations, rather than individual beneficiaries. The selection process involves comprehensive surveys and strict eligibility criteria, with the board of governors determining allocation amounts.
According to parliamentary budget documents, Bank Indonesia earmarked 1.6 trillion rupiah ($99 million) in 2023 for social programmes, including support for small and medium enterprises and price stabilisation measures. However, detailed breakdowns of fund utilisation remain undisclosed.
The timing of the raid is particularly noteworthy, coming just ahead of the central bank’s crucial two-day policy meeting, scheduled to commence today. Economic analysts largely anticipate the bank will maintain current policy rates, though the investigation’s impact on monetary policy decisions remains to be seen.
