The ACT Affair
There is a raillery in the Aksi Cepat Tanggap (ACT) humanitarian organization: where there is a disaster, ACT is there. It is the largest charitable organization in Indonesia. This raillery shows that ACT is everywhere, including in advertisements across a range of platforms. Where does the funding for all this promotion come from?
This is a question that has long puzzled the Tempo’s editorial team. It was answered when last November we met with a person who told us about the compensation from Boeing for a passenger on Lion Air flight JT610 from Jakarta to Pangkalpinang that crashed in the Java Sea on October 29, 2018 that had not been fully paid out.
A court in the United States ordered Boeing to pay compensation totaling Rp135 billion. The families of the victims agreed to nominate ACT to receive this compensation from Boeing. They also agreed that the money would be used to build 91 schools.
We tasked Agung Sedayu, a reporter from the National desk, to investigate this further. We were surprised that there was a substantial amount of information in many stories from ACT insiders stating the management of the organization’s funds was not prudent. Operational costs were too high due to the salaries and fantastic perks for ACT executives.
This was only one reason. There was also information that money from donations was used for personal facilities and the families of ACT leaders. In January this year, we received further information from various sources confirming that ACT was in crisis, while many public donations have not been paid out. Matters came to a head when ACT founder Ahyudin resigned after 17 years of leading the humanitarian institution. He then established a new charitable organization. But some claim that Ahyudin was forced to step down from ACT because he was seen as having brought the organization to the brink of collapse.
The problem was how to prove these alleged misuses of funds. We heard only stories, not convincing evidence. For example, there were the strange transfers from the organization and ACT business units for needs unrelated to the paying out of donations. As of June, our National desk reporters had still been unable to bring firm evidence to an editorial board meeting. Those present refused to publish news reports on this issue if there were nothing more than stories, no matter how much they had been backed up from dozens of sources.
But a way will always be found to do the right thing. And an informant said they were willing to reveal details from ACT financial reports. It took three meetings to convince this source that Tempo only wanted to use these documents for the public interest, namely transparency regarding the use of funds donated by the public.
The work was still not complete. Documents are still just documents. We had to verify them to determine whether the transfer records were really evidence of misuse of ACT funds. This was due to the incredible amounts concerned because the funds managed by the organization are huge: Rp540 billion per year. Meanwhile the sums taken from each donation were also substantial: some amounted to almost 40 percent.
As the verification continued, we received more documents. There were indications that the operational costs and the luxurious lifestyles of ACT executives resulted in a halt to donations being paid out. We sent teams out to prove that assistance from ACT had come to a stop. They went to Yogyakarta, Tasikmalaya (West Java), Blora (Central Java), and Lombok (West Nusa Tenggara).
You can read the results of our work in this edition. Enjoy the magazine.
Stefanus Pramono
Managing editor
Foundation for Profit
Founders and leaders of humanitarian organization Aksi Cepat Tanggap (ACT) allegedly helped themselves to public donations. How did they do this?
Inaccurate Fundraising Campaigns
A number ACT fund raising campaigns were misleading. Too much was taken from donations.
ACT Response in a Disaster
ACT volunteers acted hastily following a number of disasters. The organization even has a branch office in Palestine.
We are Not Taking Away the Rights of the People
An interview with ACT President Ibnu Khajar. He explains the alleged corruption and financial crisis at ACT.
I Have Been Made a Scapegoat
An interview with ACT founder Ahyudin. The former ACT president confirms the high salaries.
OPINION
The Irony of a Humanitarian Organization
The regulations concerning the collection of donations in Indonesia are very weak. This provides an opportunity for organizations like ACT to use financial tricks.
ECONOMY
Scrambling to Mitigate Foot and Mouth Disease
The government delegates the task of mitigating the foot and mouth disease outbreaks from the Agriculture Ministry to the National Disater Mitigation Agency (BNPB). There are budgetary problems hindering the provision of vaccines.
Failed Quarantine
There are reasons to suspect that the foot and mouth disease managed to spread due to the weak quarantine system and the delay in declaring areas of outbreak.
OPINION
A Crisis Staring Us in the Face
People in Ternate are taking the initiative to collect rainwater for daily use, showing the water crisis is almost upon us. The government needs to work harder to guarantee our right to water.
LAW
A Feud in Tanah Bambu
Mardani H. Maming is named a suspect for bribery relating to the granting of a mining permit. How is Haji Isam involved in this case?
OPINION
The Law of the Jungle at the KPK
There are indications that the KPK has become a political tool. It is dragging the nation back to the Stone Age.
