Governor Dedi, Finance Minister Purbaya Clash Over Claims of Idle Funds
Bandung. West Java Governor Dedi Mulyadi has once again denied allegations that his administration kept trillions of rupiah in deposits at Bank Indonesia to earn interest instead of using the funds for development programs, as claimed by Finance Minister Purbaya Yudhi Sadewa.
Dedi said he had verified the matter with both Bank Indonesia and the Home Affairs Ministry, confirming that no such deposits existed.
“Bank Indonesia, as the central bank, has provided an accurate clarification. There is no Rp 4.1 trillion ($247 million) held in deposit accounts,” Dedi said.
According to Bank Indonesia’s clarification, Rp 3.8 trillion of West Java’s provincial funds are kept in current accounts (giro), not as fixed-term deposits.
“Those funds have been used to pay for infrastructure projects, employee salaries, official travel, utilities, and outsourced staff,” Dedi added. “No provincial government funds are being stored to earn interest.”
Earlier, Minister Purbaya identified West Java as one of 15 regional governments holding large cash balances in banks instead of disbursing them. Other regions named included Jakarta, with Rp 14.68 trillion, and East Java, with Rp 6.8 trillion in bank holdings.
In total, Purbaya said Rp 234 trillion ($14 billion) was sitting in Bank Indonesia accounts, including Rp 134.2 trillion from regencies, Rp 60.2 trillion from provinces, and Rp 39.5 trillion from cities.
Earlier this week, Dedi publicly demanded that the finance minister present evidence to support his claims instead of “spreading baseless accusations.”
When asked about Dedi’s challenge, Purbaya responded curtly to reporters at his office:
“I’m not an employee of the West Java government. If he wants proof, he can check for himself.”
The minister maintained that his data came directly from Bank Indonesia, which updates its records every few weeks.
“Just ask the central bank -- that’s where the data came from. Most likely, his subordinates are misleading him,” Purbaya said.
He also insisted that his figures matched those held by Home Affairs Minister Tito Karnavian, underscoring that the information was consistent across ministries.
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