By Stefanno Sulaiman and Gayatri Suroyo
JAKARTA (Reuters) -Indonesia’s anti-graft agency raided the headquarters of the central bank in Jakarta on Monday in relation to a probe into alleged mishandling of a corporate social responsibility programme, the agency and the central bank said.
The office of central bank Governor Perry Warjiyo was among those raided, two sources familiar with the matter told Reuters. They declined to be named because they were not authorised to speak on the issue.
Bank Indonesia’s spokesperson did not immediately respond to a request for confirmation that Warjiyo’s office was raided.
A spokesperson for the anti-graft body confirmed the search took place but did not provide further details.
The central bank said it respected the investigation and would cooperate with the anti-graft agency.
The agency in September had 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.
Warjiyo in September said BI had 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,” Warjiyo told a press conference at the time.
BI typically donates to education, social empowerment or religious foundations, instead of individuals.
The beneficiaries are selected following a survey and must meet a set of requirements, Warjiyo said at the time, adding the board of governors decides on the size of such donations.
The central bank allocated 1.6 trillion rupiah ($99.66 million) in 2023 for social programmes and projects supporting micro-, small- and medium-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 starts its two-day policy meeting on Tuesday, with its decision due to be announced on Wednesday. It is expected to keep policy rates unchanged, according to a narrow majority of economists polled by Reuters.
($1 = 16,055.0000 rupiah)
(Reporting by Stefanno Sulaiman and Gayatri Suroyo; Editing by Martin Petty and Sam Holmes)
