Indonesian Anti-Money Laundering Body Urges Probe into Nutrition Program Corruption

The Indonesian Anti-Money Laundering Institute (LAPI) has called on the Attorney General's Office to thoroughly investigate allegations of money laundering connected to the corruption case involving the 'Free Nutritious Meal' (MBG) project. The case has already implicated three former senior officials from the National Nutrition Agency (BGN).

“

Hopefully, the Attorney General's Office will not only stop at the corruption case but also proceed to money laundering so that all proceeds of crime can be confiscated for the state.

LAPI founder Ardhian Dwiyoenanto stated that the investigation should not stop at proving the corruption charges. He urged prosecutors to pursue the money laundering aspect to ensure that all proceeds from the crime are confiscated for the state. Dwiyoenanto expressed dismay that individuals entrusted with public service might engage in corruption related to a program directly impacting public welfare, particularly the nation's future generations.

“

In the context of the BGN case, it is suspected that the foundations that became implementation partners were used as vehicles to obtain projects as well as to accommodate the proceeds of corruption.

The institute suspects that several foundations partnered with BGN in the MBG program might have been used as conduits for illicit activities. Dwiyoenanto explained that under anti-money laundering regimes, the "use of nominee" is a known modus operandi, where perpetrators use other individuals or entities to receive, disguise, or conceal the proceeds of crime. In this context, these foundations may have served as vehicles to receive funds derived from corruption and to obscure the beneficial owners who ultimately controlled and profited from these funds.

“

Foundations are used to receive the proceeds of crime originating from criminal acts of corruption.

LAPI believes that these foundations, acting as intermediaries, could create a false impression of legitimacy for the transactions, hiding the flow of illegally obtained funds. Therefore, LAPI insists that law enforcement must trace the flow of funds, identify assets, and determine all parties who benefited from the alleged corruption to fully address the case.

“

It breaks my heart how people chosen by the president could allegedly commit corruption over the National Nutrition Agency program which is so directly related to the community, especially in preparing the nation's next generation.