JAKARTA, INDONESIA - INDONESIA'S top anti-graft body has detained two senior central bank officials over their alleged involvement in misappropriating US$11 million (S$16 million) of Bank Indonesia (BI) funds, a report said.

The Corruption Eradication Commission (KPK) nabbed BI's director for legal affairs Oey Hoey Tiong, and Rusli Simanjuntak, head of BI's Surabaya office, the Jakarta Post reported on Friday.

'They will stay in detention for 20 days' while the investigation continues, KPK deputy chairman Chandra M. Hamzah said.

The anti-graft body also questioned Supreme Audit Agency head Anwar Nasution, the whistle-blower in the case, and two other witnesses, former BI deputy governor Iwan R. Prawiranata and lawmaker Hamka Yamdhu, the report said.

BI governor Burhanuddin Abdullah, who was named a suspect by the commission last month, was expected to be questioned next week, it said.

About a third of the misappropriated funds were allegedly transferred to more than 10 lawmakers during deliberations to revise the Law on Finance in 2004 to smooth its passage.

The remaining money was suspected of being used to hire lawyers to settle cases against BI brought in 2003-2004 over funds it handed out during the liquidity crunch of 1998.

The cases involved the former BI governor and deputy governors, according to allegations contained in a document issued by the commission earlier.

Observers have said the decision to detain the officials could be politically motivated, given that the case emerged just a few months before Parliament is set to appoint a new central bank governor.

Mr Abdullah still has a chance to run for a second five-year term.

President Susilo Bambang Yudhoyono is expected to submit a list of candidates for a new central bank governor to the lower house of Parliament on Friday.

Mr Abdullah indicated earlier this week his intention not to seek re-appointment. -- AFP