ANN/THE STRAITS TIMES – Corruption in Indonesia has become “chronic and sophisticated”, said analysts, as the nation’s anti-graft agency, KPK, intensifies a probe into the central bank for allegedly misusing its social aid funds to benefit certain Members of Parliament (MPs).
The case centres on allegedly illegal payments by Bank Indonesia (BI) to MPs via third-party non-profit foundations in the name of social aid, an act that analysts see as currying favour with influential lawmakers.
The central bank has defended itself, saying it operated within the law and that institutions are allowed to hand out social aid via foundations.
KPK told reporters on December 17 that it had begun the investigation several months ago. KPK’s Director of Investigation Asep Guntur Rahayu said on January 2 that the agency is looking into the possibility that the foundations receiving funds from BI are not independent or that they are affiliated with certain MPs.
“An MP might have recommended a certain foundation (to the central bank), or the MP himself runs the foundation that he recommended,” he said.
