Batubara was brought in for questioning at the Komisi Pemberantasan Korupsi (Corruption Eradication Commission) headquarters in Jakarta at about 3am local time on Sunday under heavy security by anti-graft officials, local sources reported.
The arrest followed a sting operation carried out by KPK officers on Saturday.
Two private contractors and two officials from the Social Affairs Ministry were detained and millions of dollars in cash of three different currencies were confiscated during the operation, the officials said.
It was suspected that the money was meant for Batubara, who gave the two companies a contract to deliver cash and basic necessities to 10 million families whose economies have been affected by the pandemic.
Juliari Batubara has served as Minister of Social Affairs in the 41st Cabinet of Indonesia since October 23, 2019.
He is affiliated with the Indonesian Democratic Party of Struggle (PDI-P).