Indonesian ad agencies under investigation in Bank BJB corruption case

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The Corruption Eradication Commission (KPK) is investigating allegations of corruption involving advertising funds at Bank Pembangunan Daerah Jawa Barat dan Banten (Bank BJB). The case centres on inflated advertising budgets amounting to IDR 801 billion (US$49 million), leading to substantial financial losses for the bank.

As part of the probe, KPK recently searched the residence of former West Java Governor Ridwan Kamil in Bandung on 10 March 2025. KPK chairman Setyo Budiyanto confirmed that the search was linked to the ongoing investigation into Bank BJB's financial mismanagement.

According to a report by Indonesia's Supreme Audit Agency (BPK), Bank BJB engaged six advertising agencies to act as intermediaries with media companies. However, financial audits revealed a budget discrepancy of IDR 28 billion (US$1.7 million), as the actual amounts received by media outlets were significantly lower than the bank's recorded expenditures.

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BPK's findings list six agencies involved in the placement of Bank BJB's advertisements across various media platforms between 2021 and 2023. These agencies are: Cipta Karya Sukses Bersama, Cipta Karya Mandiri Bersama, Antedja Muliatama, Cakrawala Kreasi Mandiri, Wahana Semesta Bandung Ekspres, and BSC Advertising.

Each agency was responsible for placing ads on television, print, and online platforms while receiving commissions based on a percentage of the advertising budget. However, irregularities emerged as these firms were awarded contracts through direct appointment rather than open tender, violating Bank BJB's internal procurement policies. Direct appointment is only permissible for projects valued at under IDR 1 billion (US$61,200), while contracts exceeding this amount require a competitive bidding process.

KPK indicated that the losses incurred run into hundreds of billions of rupiah. The investigation is expected to widen as authorities scrutinise financial records and procurement processes. On 13 March 2025, KPK officially announced five suspects in the case, including two from within Bank BJB and three from private entities.

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