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The Financial Transaction Reporting and Analysis Center (PPATK) has signaled the existence of funds that belong to regional governments being distributed in the capital market industry.

These funds are for buying securities instruments, including bonds or promissory notes.

“We’ve already received the report,” Yunus Husein, PPATK Chairman, told Tempo in Jakarta last week.

He said he suspected that some of the funds were from project or government program budgets.

As the programs cannot be implemented yet, the funds have been diverted to the capital market.

“This could be to take advantage of the low budget absorption rate,” he said.

According to Yunus, the regional governments’ transfer of funds may be through cooperation with banks, especially regional development banks.

This is because the funds must be deposited first in the banking system before being transferred to the capital market.

“The problem is, we’re experiencing difficulties in monitoring when the funds already entered the capital market,” he said.

PPATK has not yet confirmed who the perpetrators are that have invested regional governments’ money in the stock exchange.

However, “the officials in charge may be involved as the transaction amounts are quite large,” said Yunus.

He said there was in fact no problem if the funds invested in the capital market were regional government officials’ personal monies.

However, he said, this is still need to be questioned.

“Where are the funds from?”

The Indonesian Corruption Watch (ICW) has in fact discovered placement of regional governments’ funds in the capital market.

According to Emerson Juntho, ICW’s Coordinator for Legal and Monitoring Division, this occurred due to the weak monitoring of funds usage in regions.

Emerson said the regional government’s funds were actually public funds, so any transfers to the capital market were clearly violations.

The use of the regional government’s funds, he said, could also involve corruption because, “Who receives the benefits?”

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tempo

Labels: Economy, Financial, Internet News, Market