Jakarta – Some 10.3 trillion rupiah (S$2.06 billion) in state funds was misused in the 18 months up to the end of June this year, local media reported yesterday.

In a report cited by the Jakarta Post, the State Development Finance Comptroller – an official watchdog agency – said abuses by the State Logistics Agency (Bulog) involved 4.43 trillion rupiah or almost half the total sum. Bulog has a partial monopoly over trade in some basic commodities such as rice.

An earlier audit by international accounting firm Arthur Andersen revealed that unfavourable contracts, "irregularities" and weak supervision led to Bulog losing some US$840 million (S$1.5 billion) between April 1993 and March 1998, the Post said.

State oil and gas company Pertamina reportedly accounted for 3 trillion rupiah and the Finance Ministry 1.26 trillion rupiah of the misused funds. A previous inspection by PriceWaterhouseCoopers of Pertamina uncovered inefficiencies and potential income losses amounting to US$4.59 billion from April 1996 to March 1998, the paper added.

Losses by Bulog and Pertamina which were attributable to the misuse of funds fell sharply in the first half of this year compared to last year, but a huge increase was recorded at the Finance Ministry.