Indonesian Political, Business & Finance News

Attorney General's Office reveals price mark-ups on electric motorcycles and shoes

| Source: ANTARA_ID Translated from Indonesian | Legal
Attorney General's Office reveals price mark-ups on electric motorcycles and shoes
Image: ANTARA_ID

Jakarta (ANTARA) - The Attorney General’s Office has revealed that the former Head of the National Nutrition Agency (BGN), Dadan Hindayana (DH), and two former Deputy Heads, Lodewyk Pusung (LP) and Sony Sonjaya (SS), allegedly engaged in price mark-ups for the procurement of electric motorcycles and shoes within the BGN.

This was disclosed by the Director of Investigation of the Jampidsus at the Attorney General’s Office, Syarief Sulaeman Nahdi, at the Jampidsus Building in Jakarta on Wednesday, following the announcement of the three individuals as suspects in a suspected corruption case regarding the management of the Free Nutritious Meal (MBG) programme at the BGN for 2025-2026.

He stated that the price mark-ups in these procurements caused waste and losses to state finances, which undermined the operational implementation of the MBG programme.

Specific procurements subject to mark-ups included 21,801 units of electric motorcycles with a total procurement value of Rp1.035 trillion. Payments were made to PT YAT, a vendor that failed to meet requirements as it lacked active dealerships or workshops and was involved in the price inflation.

Other inflated procurements included 32,000 pairs of shoes that did not meet specifications, 31,994 tablets that failed to meet regulations, and 5,400 television units that were also non-compliant and subject to mark-ups.

He further revealed that the three suspects interfered with Commitment Making Officers (PPK) during the goods and services procurement process, ensuring that the Terms of Reference (KAK) for BGN procurements were not drafted according to actual field requirements.

Additionally, the three suspects allegedly unlawfully appointed affiliated foundations as partners for the Nutrition Fulfilment Service Units (SPPG).

“These foundations receive billions of rupiah in incentives every day and trillions of rupiah every year. The affiliated foundations include those owned by Mr DH, Mr SS, and Mr LP,” he said.

The budget misappropriation allegedly committed by the three suspects has resulted in losses to state finances.

As a result of their actions, the suspects are charged with violating Article 603 in conjunction with Article 20, letter a or c of Law Number 1 of 2023 regarding the Criminal Code, in conjunction with Article 18 of Law Number 31 of 1999 regarding the Eradication of Corruption Crimes, as amended by Law Number 20 of 2001.

Moving forward, the three suspects will undergo detention for the next 20 days at the Salemba Detention Centre, under the jurisdiction of the Attorney General’s Office and the South Jakarta District Attorney’s Office.

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