Former Vice President Boediono Testifies in KPK Probe Into BLBI Graft Case

Former Vice President Boediono was questioned by the Corruption Eradication Commission (KPK) on Thursday (28/12). (Antara Photo/Wahyu Putro A)

By : Alin Almanar | on 10:05 PM December 28, 2017
Category : News, Featured, Corruption

Jakarta. Former Vice President Boediono showed up at the antigraft agency's office for questioning on Thursday (28/12) as a witness in a high-profile graft case related to the Bank Indonesia Liquidity Assistance, or BLBI, bailout funds.

Former chairman of the Indonesian Bank Restructuring Agency (BPPN) Syafruddin Arsyad Temenggung was named a suspect in the case earlier this year.

Bank Dagang Nasional Indonesia (BDNI) received Rp 28 trillion ($2.7 billion) from BLBI. The bank owed the government Rp 3.7 trillion, but Syafruddin issued a letter freeing BDNI owner Sjamsul Nursalim from that obligation.

Sjafruddin became BLBI chairman in April 2002 and the letter was issued a month after he took office.

Boediono, then serving as finance minister and member of the Financial Sector Policy Committee (KKSK), was tasked with overseeing the return of borrowed funds to BLBI.

"It is up to the KPK to share the substance of the questioning," Boediono told reporters upon leaving the Corruption Eradication Commission (KPK) headquarters.

Before he was sworn in as vice president during Susislo Bambang Yudhoyono's rule, Boediono served as Bank Indonesia governor.

"Investigators were digging deeper into the witness' knowledge ... as KKSK member," KPK spokesman Febri Diansyah said later.

KKSK was established by former President B.J. Habibie. A 2002 presidential instruction, issued by former President Megawati Sukarnoputri, strengthened the committee's mandate. It was headed by the then coordinating economy minister, Dorodjatun Kuntjoro-Jakti.

KKSK members, beside Boediono, included then Finance Minister Boediono, National Development Planning Board Chairman Kwik Kian Gie, State-Owned Enterprises Minister Laksamana Sukardi and Trade and Industry Minister Rini Soemarno.

Dorodjatun, Kwik Kian Gie and Laksamana have already been questioned by KPK as witnesses in the BLBI case. Syafruddin, who remains the sole suspect, was placed in custody last week.

The KPK probe commenced four years ago. During the Asian financial crisis of 1997-98, Rp 144.5 trillion was disbursed from BLBI to 48 commercial banks, including BDNI.

According to the Supreme Audit Agency (BPK), 95 percent of the funds were misappropriated.

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