Finance Ministry's Credibility at Risk Due to Official's Corruption Cases
The Finance Ministry's credibility is at risk as the Ministry's Director General of Budget is implicated in a corruption case.
TEMPO.CO, Jakarta - The Center of Economic and Law Studies (Celios) assessed that the naming of Isa Rachmatarwata, Director General of Budget at the Finance Ministry, as a suspect in the PT Asuransi Jiwasraya case has serious economic implications. Isa was named a suspect and arrested on Friday night, February 7, 2025.
Celios Director Bhima Yudhistira Adhinegara said that although the Jiwasraya corruption case predates Isa's tenure as the Director General of Budget, his status as a suspect could undermine the credibility of the Ministry of Finance. "The issue is, this case implicates the active Budget Director and occurred amid scrutiny over the government's expenditure efficiency," Bhima told Tempo on Monday, February 10, 2025.
This, he said, shows the fragility of those close to Finance Minister Sri Mulyani Indrawati. "Those who have ethical flaws and have become lawbreakers," he added. Bhima also questioned how the Finance Minister could choose someone with integrity issues to hold such a vital position.
Furthermore, Bhima opined that this case could erode the investors' trust in the financial market. He expressed concern that the case would further exacerbate the foreign capital outflow in recent months. He worries that the case will further enlarge the outflow of foreign capital due to a lack of trust in the Ministry's management.
"It also has implications for taxpayers," Bhima said, adding that taxpayers will feel that their tax money is being used to pay individuals involved in wrongdoing.
The is preparing to fill the now vacant Budget Director position. "It is still being prepared," said Head of the Ministry of Finance's Communication and Information Service Bureau, Deni Surjantoro, when contacted by Tempo on Saturday morning, February 8, 2025.
Deni ensured that the ministry's function and services, particularly in managing state budget policies, were continuing as normal. He stated that the ministry is committed to maintaining good governance.
He could not confirm when the position would be filled. "Just wait," he said.
Ilona Estherina contributed to the writing of this article.
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