Aceh Police Escalate Corruption Investigation into Simeulue Road Project Worth Rp6.6 Billion
BANDA ACEH – Investigators from the Special Criminal Investigation Directorate (Ditreskrimsus) of the Aceh Regional Police have escalated the handling of a suspected corruption case involving the Simpang Air Dingin–Labuhan Bajau road improvement project in Simeulue Regency from a preliminary inquiry to a formal investigation.
The decision was taken during a case review held at the Ditreskrimsus hall of the Aceh Regional Police on Tuesday, 15 July 2025.
The Director of Special Criminal Investigation at the Aceh Regional Police, Commissioner Zulhir Destrian, explained that the alleged corruption occurred in a project spanning the 2023–2024 fiscal year, with a contract value of Rp6.614 billion. The project funds originated from the Simeulue Regency's DOKA regional budget for 2023 and were managed by the Simeulue Regency Public Works and Spatial Planning Agency (Dinas PUPR).
The project had originally been planned with an engineering estimate of Rp7.657 billion. However, implementation only commenced in 2023 after the budget was made available in the local PUPR agency's budget execution document.
"The work was supposed to be carried out by CV. RPJ, but in reality it was executed by another party not listed in the company's articles of incorporation. Even the managerial personnel deployed did not match those specified in the contract or work order," said Zulhir in a statement on Wednesday, 16 July 2025.
He said this was known to the Budget User Authority (KPA), Commitment-Making Official (PPK), Technical Activity Officer (PPTK), and the supervisory consultant, yet no steps were taken to terminate the contract.
Beyond the administrative violations, the work also failed to meet technical specifications and suffered from volume shortfalls, as confirmed by expert examination from the Lhokseumawe State Polytechnic.
"The contract required Class A aggregate work, but in fact it was never installed. There was also a shortfall of 7.97 cubic metres in F'c 20 MPa structural concrete and a stone volume deficit of 23.57 cubic metres. Furthermore, the advance payment was distributed to parties who were not entitled to it," he continued.
Investigators also noted that the 100 per cent work handover was conducted without thorough inspection of the physical conditions on the ground. The supervisory consultant's oversight was deemed to have fallen short of contractual requirements, resulting in work quality that did not meet standards.
In this case, investigators have examined 31 witnesses. They will apply Article 2 paragraph (1) and/or Article 3 of Law Number 31 of 1999 on the Eradication of Corruption, as amended by Law Number 20 of 2001, in conjunction with Article 55 paragraph (1) point 1 of the Criminal Code.
Tender Process Riddled with Problems
In March 2023, the project was put out to open tender. CV. BM was declared the winning bidder, whilst CV. AJS and CV. RPJ were designated as first and second reserves respectively. However, the process faced objections because the primary equipment support from CV. BM and CV. AJS was subject to a dispute.
Nevertheless, Procurement Working Group IV of the Simeulue Procurement Service Unit endorsed CV. BM as the winner.
"Due to legality issues with the primary equipment, the KPA did not immediately appoint CV. BM but allowed time for them to complete equipment support documentation. However, both CV. BM and CV. AJS failed to meet the requirements. Subsequently, RH contacted the Head of PUPR Simeulue to have CV. RPJ appointed as the contract winner," Zulhir explained.
The KPA ultimately issued a Letter of Appointment to CV. RPJ, followed by the signing of a contract worth Rp6.614 billion. However, RH — who was neither the owner of CV. RPJ nor listed in the company's articles of incorporation — was found to have merely borrowed the company to participate in the tender. He then handed over project execution to SA, the owner of an asphalt mixing plant who had previously provided equipment support to CV. RPJ.
Meanwhile, CV. RPJ received only a "flag-borrowing fee" of one per cent of the contract value, amounting to Rp55 million.
Fee Distribution and Advance Payment Diversion
In August 2023, a meeting was held at the Simeulue PUPR Agency office attended by RH, SS, SA, AM, IS, as well as PA and the KPA, to discuss project implementation, the advance payment withdrawal mechanism, and fee distribution.
RH stated that the advance payment of 30 per cent, or approximately Rp1.9 billion, would be distributed among several parties. However, changes to the distribution arrangement prompted SA to object and meet PA in Banda Aceh.
A new distribution was agreed: SA would receive Rp1 billion, AM Rp268 million, SS Rp235 million, and RH Rp268 million. Following disbursement, the advance payment was distributed according to RH's instructions.
After the provisional handover of works on 26 March 2024 and the final handover on 23 September 2024, the full 100 per cent payment was made to CV. RPJ through Bank Aceh Syariah in four instalments.
The decision was taken during a case review held at the Ditreskrimsus hall of the Aceh Regional Police on Tuesday, 15 July 2025.
The Director of Special Criminal Investigation at the Aceh Regional Police, Commissioner Zulhir Destrian, explained that the alleged corruption occurred in a project spanning the 2023–2024 fiscal year, with a contract value of Rp6.614 billion. The project funds originated from the Simeulue Regency's DOKA regional budget for 2023 and were managed by the Simeulue Regency Public Works and Spatial Planning Agency (Dinas PUPR).
The project had originally been planned with an engineering estimate of Rp7.657 billion. However, implementation only commenced in 2023 after the budget was made available in the local PUPR agency's budget execution document.
"The work was supposed to be carried out by CV. RPJ, but in reality it was executed by another party not listed in the company's articles of incorporation. Even the managerial personnel deployed did not match those specified in the contract or work order," said Zulhir in a statement on Wednesday, 16 July 2025.
He said this was known to the Budget User Authority (KPA), Commitment-Making Official (PPK), Technical Activity Officer (PPTK), and the supervisory consultant, yet no steps were taken to terminate the contract.
Beyond the administrative violations, the work also failed to meet technical specifications and suffered from volume shortfalls, as confirmed by expert examination from the Lhokseumawe State Polytechnic.
"The contract required Class A aggregate work, but in fact it was never installed. There was also a shortfall of 7.97 cubic metres in F'c 20 MPa structural concrete and a stone volume deficit of 23.57 cubic metres. Furthermore, the advance payment was distributed to parties who were not entitled to it," he continued.
Investigators also noted that the 100 per cent work handover was conducted without thorough inspection of the physical conditions on the ground. The supervisory consultant's oversight was deemed to have fallen short of contractual requirements, resulting in work quality that did not meet standards.
In this case, investigators have examined 31 witnesses. They will apply Article 2 paragraph (1) and/or Article 3 of Law Number 31 of 1999 on the Eradication of Corruption, as amended by Law Number 20 of 2001, in conjunction with Article 55 paragraph (1) point 1 of the Criminal Code.
Tender Process Riddled with Problems
In March 2023, the project was put out to open tender. CV. BM was declared the winning bidder, whilst CV. AJS and CV. RPJ were designated as first and second reserves respectively. However, the process faced objections because the primary equipment support from CV. BM and CV. AJS was subject to a dispute.
Nevertheless, Procurement Working Group IV of the Simeulue Procurement Service Unit endorsed CV. BM as the winner.
"Due to legality issues with the primary equipment, the KPA did not immediately appoint CV. BM but allowed time for them to complete equipment support documentation. However, both CV. BM and CV. AJS failed to meet the requirements. Subsequently, RH contacted the Head of PUPR Simeulue to have CV. RPJ appointed as the contract winner," Zulhir explained.
The KPA ultimately issued a Letter of Appointment to CV. RPJ, followed by the signing of a contract worth Rp6.614 billion. However, RH — who was neither the owner of CV. RPJ nor listed in the company's articles of incorporation — was found to have merely borrowed the company to participate in the tender. He then handed over project execution to SA, the owner of an asphalt mixing plant who had previously provided equipment support to CV. RPJ.
Meanwhile, CV. RPJ received only a "flag-borrowing fee" of one per cent of the contract value, amounting to Rp55 million.
Fee Distribution and Advance Payment Diversion
In August 2023, a meeting was held at the Simeulue PUPR Agency office attended by RH, SS, SA, AM, IS, as well as PA and the KPA, to discuss project implementation, the advance payment withdrawal mechanism, and fee distribution.
RH stated that the advance payment of 30 per cent, or approximately Rp1.9 billion, would be distributed among several parties. However, changes to the distribution arrangement prompted SA to object and meet PA in Banda Aceh.
A new distribution was agreed: SA would receive Rp1 billion, AM Rp268 million, SS Rp235 million, and RH Rp268 million. Following disbursement, the advance payment was distributed according to RH's instructions.
After the provisional handover of works on 26 March 2024 and the final handover on 23 September 2024, the full 100 per cent payment was made to CV. RPJ through Bank Aceh Syariah in four instalments.