ANTI-GRAFT activists have called on the government to be transparent in the disbursement of the recently unveiled 405.1 trillion rupiah (RM106bil) Covid-19 economic stimulus in order to avoid the pitfalls of past corruption cases in 2008 and 1998.
The government issued a regulation in lieu of law (Perppu) on March 31, allowing policymakers to take “extraordinary measures” to cushion the economy from the negative impacts of the outbreak.
The regulation gives Financial System Stability Committee (KSSK) members legal protection to carry out their respective duties as long as those are done “in good faith” and with respect to existing law.
The KSSK is a forum chaired by the Finance Minister, with members including the Bank Indonesia governor and the heads of the Financial Services Authority (OJK) and the Deposit Insurance Corporation (LPS).
Article 27 of the Perppu stipulates that funds spent by the government in carrying out such policies are part of the economic costs to save the country from economic crisis and will not be counted as state losses.Indonesia Corruption Watch activist Kurnia Ramadhana called on the government to exercise prudence in making any future decisions under the Perppu mechanism, given the impunity provision.
“If there is potential for corruption, don’t allow the economic stimulus to be a pretext for such offences,” Kurnia said.
“Don’t be hasty in making decisions that might potentially become corruption offences.”
He said that past corruption cases relating to government interventions to save the economy should be taken as a lesson by President Joko “Jokowi” Widodo’s administration.
During the 1998 financial crisis, BI provided liquidity support to commercial banks to restore public faith in banks as they suffered massive runs, but most of the money was later found to have been embezzled. — The Jakarta Post/ANN
The government issued a regulation in lieu of law (Perppu) on March 31, allowing policymakers to take “extraordinary measures” to cushion the economy from the negative impacts of the outbreak.
The regulation gives Financial System Stability Committee (KSSK) members legal protection to carry out their respective duties as long as those are done “in good faith” and with respect to existing law.
The KSSK is a forum chaired by the Finance Minister, with members including the Bank Indonesia governor and the heads of the Financial Services Authority (OJK) and the Deposit Insurance Corporation (LPS).
Article 27 of the Perppu stipulates that funds spent by the government in carrying out such policies are part of the economic costs to save the country from economic crisis and will not be counted as state losses.Indonesia Corruption Watch activist Kurnia Ramadhana called on the government to exercise prudence in making any future decisions under the Perppu mechanism, given the impunity provision.
“If there is potential for corruption, don’t allow the economic stimulus to be a pretext for such offences,” Kurnia said.
“Don’t be hasty in making decisions that might potentially become corruption offences.”
He said that past corruption cases relating to government interventions to save the economy should be taken as a lesson by President Joko “Jokowi” Widodo’s administration.
During the 1998 financial crisis, BI provided liquidity support to commercial banks to restore public faith in banks as they suffered massive runs, but most of the money was later found to have been embezzled. — The Jakarta Post/ANN
Already a subscriber? Log in
Get 20% OFF The Star Digital Access
Cancel anytime. Ad-free. Unlimited access with perks.
