Jakarta – The central bank uncovered more than 130 cases of banking-sector crimes involving losses of more than Rp 1.2 trillion (US$133 million) in 2006, revealing little improvement from previous years.
Bank Indonesia legal officer Hendrikus Ivo said that the central bank – in cooperation with the National Police and the Attorney General's Office – had uncovered 43 cases of criminal activity involving 33 banks, and another 91 cases involving rural credit banks (BPR).
"Total losses amounted to Rp 1.209 trillion and US$52 million, respectively," Hendrikus was quoted Thursday as saying by Antara, during a workshop on white-collar crime held in conjunction with the Corruption Eradication Commission (KPK) in Bandung.
The BI data revealed that most of the cases – totaling some 600 uncovered during the period from 1999 to 2006 – consisted of irregularities in the disbursement of loans (30 percent), irregularities in the management of central bank liquidity support funds, and the fabrication of financial data (17 percent in both cases).
Other cases involved abuse of office, markups and embezzlement. Total losses during the period from 2003 to 2006 alone amounted to Rp 5.32 trillion and $129.02 million, respectively.
Hendrikus said that the size of the losses would encourage BI and law enforcement agencies to further crack down on banking-sector crimes, which were becoming increasingly sophisticated.
BI and the KPK signed a memorandum of understanding (MoU) last December to improve cooperation in the prevention and tackling of corruption in the banking sector through the establishment of an integrated customer data assessment center.
There are also programs to improve the capacity of the two institutions in handling banking-sector crimes.
The central bank had previously signed similar MoUs with the National Police, the AGO, and the country's money-laundering watchdog, the Financial Transactions Reporting and Analysis Center (PPATK).
For its part, the KPK has also entered into an agreement to strengthen cooperation with the PPATK.
BI has been active in promoting transparency and accountability within the banking sector, requiring lenders to implement such principles as "Know Your Customer", good corporate governance and proper selection tests for bank managers and owners.