JAKARTA - The House of Representatives has warned the government of the risk of a repeat of the Bank Indonesia Liquidity Assistance (BLBI) fund misappropriation in the allocation of stimulus to cushion the impact of the coronavirus (Covid-19) pandemic.
The Rp 405.1 trillion stimulus n is stipulated in Government Regulation in Lieu of Law (Perppu) No. 1/2020 on the State Financial Policy and Financial System Stability, which has been signed by President Joko Widodo.
"We should prevent the 1998 BLBI fraud from occuring again, because if Perppu No. 1/2020 was not monitored in a transparent manner we would see a misuse of state funds with a high probability of corruption," said House member from the Prosperous Justice Party (PKS) Mardani Ali Sera in a House plenary meeting on Thursday (2/4) as quoted by CNN Indonesia.
Additionally, House member from the United Development Party (PPP) Achmad Baidowi also warned that an article in the regulation gives the impression of a legal immunity for Financial System Stability Committee (KSSK) members should a misappropriation occur.
"One article has the potential to invoke public debate, which is Article 27 that could possibly render public scrutiny difficult because the wording gives the impression that [KSSK] members have a legal immunity and thus cannot be civilly or criminally sued," said Mr Baidowi.
"More detailed explanation is needed so that if something such as misappropriation occurs, or if the stimulus misses its target, it can be clearly classified as state losses." (MS)