Central Bank Scandal: A Closer Look at CSR Fund Misuse in Indonesia

Indonesia's anti-graft agency raided the central bank's headquarters over a probe into alleged mishandling of corporate social responsibility (CSR) funds. Suspicions arose over improper donations to foundations. Bank Indonesia Governor's office was raided, and documents seized. The investigation continues as the bank pledges cooperation.

On Monday, Indonesia's anti-graft agency conducted a raid at the central bank's headquarters in Jakarta, intensifying an investigation into alleged mismanagement of corporate social responsibility funds.

The office of Bank Indonesia Governor Perry Warjiyo was targeted, with investigators seizing documents and electronic devices related to a CSR programme. Officials suspect funds were improperly donated to various foundations, with 'two suspects' already identified.

The central bank has pledged full cooperation with the investigation, underscoring that its CSR governance is robust and systematic. The probe comes as BI allocates substantial funds for social initiatives. The outcome of this high-profile investigation remains to be seen as BI maintains current policy rates.

(With inputs from agencies.)