IDR 1.18 Trillion in UMKM Assistance Misdirected

The Indonesian Supreme Audit Agency (BPK) found irregularities totaling Rp 1.18 trillion (approximately US$79 million) in the disbursement of productive assistance for micro-businesses (BPUM) in 2020. According to the BPK's audit of the 2020 Central Government Financial Report (LKPP), this assistance was given to 414,613 recipients who did not meet the criteria and/or regulations, and instances of duplicate payments occurred.

Details are as follows: Rp 673.9 billion (approximately US$45 million) in BPUM was disbursed to 280,800 recipients with mismatched National Identity Numbers (NIK). Rp 101.9 billion (approximately US$6.8 million) was given to 42,200 recipients who are civil servants (ASN), members of the Indonesian National Armed Forces (TNI), National Police (Polri), and employees of state-owned enterprises (BUMN) and regional-owned enterprises (BUMD).

Rp 91.8 billion (approximately US$6.1 million) was disbursed to 38,200 deceased recipients. Rp 49.01 billion (approximately US$3.3 million) was given to 20,400 recipients with anomalous NIKs.

Rp 46.4 billion (approximately US$3.1 million) was also given to 19,400 recipients who are not micro-businesses. Rp 28.4 billion (approximately US$1.9 million) was disbursed to 11,800 recipients who were already taking out other bank loans.

Furthermore, 1,400 recipients received BPUM more than once, totaling Rp 3.34 billion (approximately US$0.22 million). Twenty-two recipients received Rp 52.8 million (approximately US$3,500) in BPUM that did not comply with the attached regulations.

Eight recipients received Rp 19.2 million (approximately US$1,300) in BPUM and have since moved abroad. Finally, there was one instance of duplicate BPUM disbursement to a single recipient, totaling Rp 2.4 million (approximately US$160).