Indonesia's anti-corruption agency has arrested the governor of Aceh province over accusations that he took illegal fees for projects funded from more than $500 million of state funds, the latest high-profile target in a battle on graft.

Irawandi Yusuf, a former separatist rebel, became the first directly elected governor of the northwestern province after a peace deal to end years of conflict was signed with Jakarta in the wake of the devastating 2004 tsunami.

Yusuf, who escaped from a jail where he had been serving a sentence for treason after it flooded during the tsunami, was re-elected in 2017 for a second term as governor.