Indonesia’s Corruption Eradication Commission (KPK) conducted a raid on the headquarters of Bank Indonesia (BI), the country’s central bank, on Monday as part of an ongoing investigation into the use of its corporate social responsibility (CSR) funds, Bloomberg reports, citing other media.
The raid, confirmed by BI spokesperson Ramdan Denny Prakoso in a statement on Tuesday, reportedly included a search of Governor Perry Warjiyo’s office, according to Reuters sources.
Prakoso emphasized BI’s full cooperation with the KPK.
“Bank Indonesia respects and fully submits to the legal process carried out by the KPK in accordance with applicable procedures and regulations, supports investigation efforts, and is cooperative with the KPK.”
The raid comes just ahead of BI’s interest rate decision announcement on Wednesday. While a Bloomberg poll suggests a slight majority of economists expect the BI-Rate to remain at 6%, the timing of the KPK action adds a layer of uncertainty to the monetary policy announcement. The decision will be closely watched given slowing economic growth and inflation, as well as the ongoing efforts to stabilize the rupiah.
Governor Warjiyo previously defended BI’s CSR practices in September, asserting that the bank follows rigorous governance procedures and that funding is exclusively channeled to foundations – never individuals – primarily focusing on education, social development, and community empowerment.
The KPK is concurrently investigating the Financial Services Authority (OJK) regarding similar concerns, indicating a broader probe into the use of CSR funds within Indonesia’s financial sector.
