Indonesia anti-graft body searches central bank's headquarters

Indonesia anti-graft body searches central bank's headquarters

JAKARTA (Reuters) -Indonesian anti-graft investigators 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 central bank said.

A spokesperson for the anti-graft body on Tuesday confirmed the search took place but did not provide further details.

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.

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, 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," he 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 decide on the size of such donations.

The raid happened a day before BI starts its two-day policy meeting on Tuesday, with its decision due to be announced on Wednesday.

(Reporting by Stefanno Sulaiman and Gayatri Suroyo; Editing by Martin Petty and Sam Holmes)

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