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Jakarta Post

KPK motors ahead with BLBI loan probe

  • Irawaty Wardany

    The Jakarta Post

Jakarta   /   Wed, January 21 2009   /  07:53 am

The Corruption Eradication Commission (KPK) is investigating the possible embezzlement of Rp 456 trillion (US$40.6 billion) disbursed to ailing state-owned banks during the 1998 financial crisis as part of the Bank Indonesia liquidity support (BLBI) program.
“We are still evaluating this case, and teams from the KPK, the Attorney General’s Office (AGO) and the Finance Ministry meet every week to discuss this issue,” KPK deputy chairman for enforcement Bibit Samad Rianto told The Jakarta Post on Tuesday.
He said the separate teams were also investigating the transfer of Rp 144.5 trillion to private banks, also as part of the BLBI scheme.
During the 1997-1998 regional financial crisis prior to Soeharto’s downfall in 1998, the central bank disbursed more than Rp 600 trillion in BLBI funds to save the country’s ailing banks. However, the ai...