Indonesian Political, Business & Finance News

Disaster Funds Embezzled as Victims Suffer

| Source: DETIK Translated from Indonesian | Legal
Disaster Funds Embezzled as Victims Suffer
Image: DETIK

Bima Setiawan was an expert adviser to his older brother, Suharyanto, who served as head of the National Disaster Mitigation Agency (BNPB). However, several BNPB officials responsible for day-to-day technical work said they knew little about Bima’s position at the agency.

Berton SP Panjaitan, acting head of BNPB’s Disaster Data, Information and Communication Centre, said he did not know Bima’s exact employment status, including whether there was an appointment decree underpinning his role.

“I don’t really understand. So I can’t answer this now, because it could become material for the KPK’s investigation,” Berton told detikX.

Bima was arrested in a Corruption Eradication Commission (KPK) sting operation on Tuesday, 13 October 2026. He was subsequently named a suspect in alleged corruption related to the use of the ready-to-use disaster response fund (DSP).

Between 2024 and 2026, BNPB made procurements worth about Rp148 billion through direct appointments rather than tenders. The suppliers working with the agency are suspected of being affiliated with Bima.

Funds channelled to companies affiliated with Bima were allegedly used for his personal interests, including the purchase of shares in PT Medela Potentia through PT Alfa Veritas Energizer. The transaction was worth about Rp30.98 billion.

The KPK began investigating the alleged corruption over a conflict of interest in goods and services procurement carried out by Bima. As an expert adviser, he is also suspected of coordinating directly with Suharyanto.

Even so, Bima’s position at BNPB has not been confirmed administratively. Berton said he did not know whether Bima had an appointment decree or an assignment letter. He explained that expert advisers coordinate directly with the agency head, while he and other staff work through BNPB’s formal organisational structure.

“An expert adviser to the agency head discusses everything with the head, not with anyone else,” Berton said.

Berton said the agency head could, in certain situations, convene officials to discuss an issue. Afterwards, the head could speak with expert advisers to seek their input before discussions continued.

“The head might say, ‘We need to discuss this.’ We discuss it, and afterwards he speaks with his expert advisers to ask what other insights they might have,” he said.

According to Berton, there is no direct hierarchical relationship between expert advisers and technical staff such as himself. Day-to-day work is coordinated mainly through the agency head or the structural officials overseeing each unit.

Asked whether Bima was often at the office and accompanied Suharyanto in his daily work, Berton said he did not know for certain. He added that he did not meet the agency head every day either, because they worked on different floors and had separate schedules.

“I’ve met Mr Bima and Mr Richard [Richard Erlangga, another expert adviser to the BNPB head who was also named a suspect in the case] a few times,” Berton said.

But he did not know the purpose of those meetings. He could not confirm whether Bima was always present at the office or had an appointment decree assigning him as an expert adviser.

Berton said staff appointments generally have an appointment decree or assignment letter, but he had not checked documents relating to Bima.

“I don’t really understand. This may become material for the KPK investigation,” he said.

Berton also denied having a direct working relationship with Bima on procurement. He said his duties concerned disaster preparedness, while procurement of goods and services for disaster response fell under another unit.

“We usually work with the agency head. The agency head works with his superiors and his expert advisers,” Berton said.

Verified information about Bima’s educational background, academic qualifications and career before he joined BNPB remains difficult to find in open sources.

Outside his role as an expert adviser, Bima is also known to have activities in the private sector, including involvement in business networks connected to goods and services procurement tenders.

Meanwhile, the investigation into alleged corruption involving BNPB’s DSP has also reached Suharyanto’s office. The KPK searched the office of the former BNPB head for two days, on 14 and 15 October 2026, following the sting operation. At nearly the same time, President Prabowo Subianto appointed Lieutenant General Kristomei Sianturi as BNPB head, replacing Suharyanto, on Thursday, 15 October 2026.

Achmad Taufik Husein, acting director of KPK investigations, said searches had not been limited to the BNPB head’s office. Investigators also visited several deputy-level offices and offices linked to procurement, including that of GSP, a commitment-making official (PPK).

“Several BNPB officials’ offices have been searched, including the agency head’s. Investigators also went to deputy-level offices and several procurement offices, including the office of GSP as the PPK,” Taufik said at a press conference at the KPK’s Merah Putih building in South Jakarta on Friday, 16 October 2026.

The KPK has not disclosed what evidence was taken from the offices. Asked what had been seized, Taufik said further information would be provided later.

Indonesia Corruption Watch (ICW) warned that corruption involving disaster-response funds should not be viewed solely as a matter of state financial losses. Its consequences affect people in the most vulnerable circumstances, who may urgently need food, medicine and shelter.

“Corruption involving disaster funds does not merely cause losses to state finances; it also harms people who are vulnerable and in urgent need of assistance,” ICW researcher Seira Tamara told detikX.

She said this vulnerability was linked to the purpose of the DSP, which is designed to enable the government to act quickly when disaster strikes.

That flexibility is necessary to ensure emergency response is not held up by lengthy bureaucratic procedures. But without rigorous oversight, it can create opportunities for abuse of authority.

ICW recorded 39 corruption cases related to disasters handled by law enforcement between 2019 and 2024, involving state losses of about Rp135.6 billion and bribes worth about Rp91.4 billion.

Seira also highlighted Bima Setiawan’s role as an expert adviser to the agency head amid the alleged corruption involving BNPB’s DSP. ICW said the case should be examined not only for suspected procurement irregularities, but also for weaknesses in internal oversight and the prevention of conflicts of interest.

“This is reflected in the appointment of the former BNPB head’s younger brother as an expert adviser, which shows that BNPB does not have a mechanism for managing conflicts of interest,” Seira said.

ICW urged the KPK to investigate the case comprehensively, including questioning former BNPB head Suharyanto and the relevant deputies. The investigation should trace those with greater decision-making authority, rather than stopping with technical procurement personnel.

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