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Indonesia Plans ‘Chance to Repent’ for Those Linked to Graft

Prabowo Subianto Photographer: Bay Ismoyo/AFP/Getty Images (BAY ISMOYO/Photographer: BAY ISMOYO/AFP)

(Bloomberg) -- Indonesian President Prabowo Subianto offered an unconventional deal to those accused of corruption: return stolen state assets — even quietly — and you may be forgiven.

Prabowo extended what he called a “chance to repent” to those who have pilfered state coffers. “To the corrupt, or those who feel they have stolen from the people, return what you’ve taken and perhaps we will forgive you,” he said in a speech on Wednesday to hundreds of students in Cairo during his visit to Egypt.

“You can even do it discreetly, so no one finds out,” he added, without further details on how the policy would be carried out.

The offer came days after the anti-corruption agency KPK searched offices at the central bank, and as police questioned one of Prabowo’s ministers for the first time, in a separate probe. Prabowo, a former general, has pledged to step up efforts to eradicate corruption, which he says has drained government finances. He has promised dedicated funds to pursue corrupt officials and raise salaries for law enforcement officers to deter future abuses.

“Trust me, I will clean up the apparatus of the Republic of Indonesia,” he said in Cairo.

Yusril Ihza Mahendra, the Coordinating Minister for Law, Human Rights, Immigration, and Correction, confirmed Prabowo’s offer, calling it part of broader strategy for asset recovery aligned with the United Nations Convention Against Corruption by shifting focus from punishment to asset recovery. 

“The president has the authority to grant amnesty, or abolition for any crime, including corruption, while putting the nation’s interests first,” he said in a statement, adding that Prabowo would consult parliament before moving forward.

Budi Arie Setiadi, Minister of Cooperatives and formerly top communication official under former President Joko Widodo, has been questioned by police as a witness in a corruption probe. There has been no indication he is the focus of the probe or faces any accusations of wrongdoing. 

“I’m obliged to assist the police and provide any necessary information,” Setiadi said in a text message, adding the questions relate to an online gambling case.

The KPK earlier this week visited Bank Indonesia to question officials and remove documents as they examine the central bank’s use of corporate social responsibility funds. Governor Perry Warjiyo said the central bank’s respect for the legal process was shown by its cooperation with the watchdog. The KPK is running similar probes of the Financial Services Authority and other agencies, and has said it has identified two people suspected of wrongdoing, without identifying them or their institution.

Read: Indonesia Central Bank Cooperates With Graft Probe of CSR Funds

Graft is a perennial problem in Southeast Asia’s largest economy and is commonly cited as a barrier to doing business. Indonesia ranked 115th out of 180 countries in Transparency International’s 2023 Corruption Perceptions Index, highlighting the challenge of reversing long-standing systemic abuses.

Prabowo’s amnesty initiative, while pragmatic in its bid to recover lost assets and bolster fiscal health, raises questions about the long-term impact on institutional reforms. And critics say the KPK has been weakened since it was placed directly under the office of the president. 

“From a legal perspective, implementing such pardons presents significant challenges, as existing laws require strict enforcement of penalties for corruption,” said Dedi Dinarto, lead Indonesia analyst at public policy advisory firm Global Counsel.

“I suggest we wait and see whether this speech leads to any policy changes,” he said. “If so, it could a signal a softer approach to anti-corruption efforts in the country.”

(Adds minister being questioned, more government comment, details throughout.)

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