T

he highly secretive State Intelligence Agency (BIN) spent more than half of its budget on intelligence operations related to domestic affairs, according to an audit by the Supreme Audit Agency (BPK).

An audit of the BIN’s 2009 financial account, made public by the BPK in September 2010, revealed that the agency spent more than 78 percent of its Rp 982 billion (US$112 million) budget on operations and the remainder on wages and administrative affairs.

The account revealed several expenses for specific operations, including counter-intelligence measures, security and public order operations, counter separatism, trans-national crimes and anti-counterfeiting and strategic intelligence operations.

However, questions arose over the Rp 481 billion in spending under a post merely labeled “intelligence operation”.

The BPK could not clarify the details, but according to legislator Effendi Choirie of the House of Representatives’ Commission I for defense, intelligence and information, the spending may be for safeguarding activities related to the general election.

“We’ve heard that for the past couple of years, the BIN spent most of its resources on dealing with general and local elections,” said Effendi, who has been with the Commission since 1999.

The most recent legislative and presidential elections, held every five years, was in 2009.

However, the BIN’s 2008 accounts also consisted of similar nebulous spending amounting to Rp 356 billion.

Despite a lack of transparency in the spending, the BPK has granted an “unqualified opinion” on the BIN's 2008 and 2009 accounts, meaning the budget management has complied with existing regulations.

According to a source at the BIN, the agency cannot expose the details of the spending as it could jeopardize the confidentiality of its operations.

“For sure, the funds are used, among other things, to buy information or to pay for our local and overseas informants, as well as for entertaining high-level resources, officials, politicians and other VIPs,” the source said.

“The allocated budget is just never enough. We usually seek help from certain businessmen to finance our operations in exchange for protection and information about their rival businessmen.”

The source said other high-dollar expenses included establishing cover-up companies locally and overseas, as well as additional benefits for the welfare of intelligence personnel.

BIN's 1,800 intelligence officials, excluding administrative staff, receive a relatively higher take-home pay due to numerous benefits compared with civil servants at other agencies.

The BIN chief, who is the same level as a minister, receives a monthly salary of around Rp 35 million, while a freshly-graduated agent receives at least around Rp 3.5 million, excluding additional facilities if tasked to certain operations.

However, it has become public knowledge that BIN agents usually have side businesses to help cater to their lifestyles.

Most of the BIN top officials have sent their children to study overseas, financed either by their side business or by their business colleagues.

BIN chief Gen. (ret.) Sutanto refused to comment further on the issue.