Indonesia regional lawmakers pawn appointment letters to cover campaign costs; experts warn of potential corruption

JAKARTA: Several newly inaugurated Indonesian lawmakers have resorted to pawning their appointment letters (SKs) in exchange for bank loans, to relieve some of the high costs of political campaigning for the regional elections.

Observers say this is an old phenomenon that occurs with each new batch of regional legislative council (DPRD) members, while expressing concern that this condition will lead to political corruption and a deteriorating democracy.

“The risk is that there could be abuse of authority with the aim of covering the need to pay instalments and other political costs,” Ms Titi Anggraini, an election expert from the University of Indonesia (UI), told CNA.

DPRD members of Pasuruan regency, East Java province, were among those who pawned their SKs.

A report by online news portal Detik on Wednesday (Sep 4) cited the interim chairman of the Pasuruan DPRD, Abdul Karim, saying that four people had pawned their SK as collateral for a bank loan, and the number would likely increase.

The loans amounting to 500 million rupiah (US$32,400) or more were obtained from Bank Jatim.

In West Java province’s Subang regency, several DPRD members have applied to Bank BJB for loans of between 500 million and 1 billion rupiah with a tenor of five years or as long as they serve, reported local media outlet Viva. 

The monthly salaries of the Subang DPRD members will be cut by 50 per cent to pay off the debt instalments. 

Council members are paid around 50 million rupiah per month as stipulated by the law.

CNN Indonesia reported that after being officially inaugurated last Tuesday, 10 DPRD members of Serang city in Banten province have pawned their SKs.

Secretary of the Serang DPRD Ahmad Nuri said that a number of banks have offered loans of up to 1 billion rupiah.

In Sragen regency, Central Java, 22 of the 50 newly inaugurated DPRD members last week have pawned their SKs for loans, BPR Bank Djoko Tingkir president director Titon Darmasto told Detik on Wednesday. The loan amounts range from 200 million to 500 million rupiah.