NACC raids Central Bank of Indonesia over CSR project corruption allegations

Indonesia's anti-corruption agency raids Central Bank headquarters over CSR project misappropriation of funds

On December 17, 2567, Nikkei Asia reported that the Indonesian Anti-Corruption Commission (KPK) raided the headquarters of the country's central bank as part of an investigation into alleged misuse of funds in a corporate social responsibility (CSR) program.

Raman Denny Prakoso, spokesman for the Bank of Indonesia (BI), revealed that the raid was aimed at uncovering fraudulent disbursement of CSR funds.

KPK spokesman Tessa Mahardika confirmed the raid but did not clarify whether the office of Indonesian central bank governor Perry Warjiyo was also searched.

Asep Guntur Rahayu, director of investigations at the KPK, revealed that the agency was concerned about wrongdoing in the Bank of Indonesia's CSR (Corporate Social Responsibility) program and initiated an investigation in September, stating that half of the allocated funds were not used for their intended purpose. Further details about the case are expected to be revealed at a press conference today.

Responding to the incident, Warjiyo defended the central bank’s CSR initiatives, noting that the funds from the scheme include scholarships for university students, financing for micro, small and medium enterprises (MSMEs), and support for the construction and maintenance of mosques, churches and other places of worship.

“As an institution committed to strong governance and adhering to legal principles, Bank Indonesia has provided all necessary information to support the investigation,” Warjiyo said in September.

The report states that the raid took place just hours after Indonesian President Prabowo Subianto was sworn in to select new commissioners for the KPK, including the appointment of Setyo Budianto as the new director of the KPK. Budianto is a senior police officer with the rank of Police General and was previously the director of the Criminal Investigation Division of the National Police.

The appointment of the new KPK leader has been criticized by anti-corruption groups, who questioned the selection process and expressed concerns about the commissioner's track record. Public confidence in the KPK has declined significantly in recent years due to its own involvement in corruption scandals, particularly after former KPK director Fierli Bahuri was dismissed in 2566 on allegations of extortion linked to a corruption investigation involving former cabinet ministers.

After taking office, Buyianto pledged to support the government in its fight against corruption by preventing budget misuse, ensuring transparent procurement processes and controlling unnecessary expenditure.

The raid also comes just one day ahead of Bank Indonesia's policy meeting tomorrow (August 1).

Reference: asia.nikkei.com

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