Cancellation of Rp8.5 Billion Official Vehicle Claimed Resolved After Prabowo's Criticism

The East Kalimantan provincial government claims that the issue of procuring an official vehicle for the governor worth Rp8.5 billion has been fully resolved and returned.

This statement was made after President Prabowo Subianto previously criticised the procurement of this official vehicle, deeming it inefficient.

“In terms of calculations and administration, the procurement process is considered complete, as the vehicle has never been used in the field,” said Head of the East Kalimantan Communication and Informatics Office, Muhammad Faisal, in Samarinda on Friday (20/3), as reported by Antara.

Faisal explained that the purchase value was Rp8.5 billion, but the supplier only received a net payment of Rp7.5 billion. The Rp1 billion difference, he said, consists of deductions for Value Added Tax (PPN) and Income Tax (PPh).

He stated that the taxes have already been deposited by the East Kalimantan provincial government into the central government’s coffers and are now being processed in coordination with the Directorate General of Taxes for refund. This fund return is said to take two to three months.

Faisal conveyed that the Rp8.5 billion fund has been calculated to include taxes, re-registration fees, inter-island shipping costs, insurance, and the supplier’s profit margin.

The procurement system for regional head facilities was previously carried out through a direct appointment mechanism, which is valid because there is only one distributor in the Jakarta region.

“Through the resolution of administration and transparent efforts to reclaim tax funds, the East Kalimantan provincial government demonstrates its commitment to supporting budget efficiency in accordance with firm directives from the central government,” Faisal stated.

Prabowo previously mentioned the Rp8.5 billion official vehicle purchase while hosting journalists in Bogor on Thursday (19/3). At that time, Prabowo touched on inefficient local spending patterns.

“Many officials, in my opinion, are inefficient. You see for yourself, let’s be open. There’s a regional government that buys an official vehicle for the governor for how much? Rp8 billion,” said Prabowo.

“I am the President of the Republic of Indonesia, I use an Indonesian-made Maung vehicle. Its price is Rp700 million,” he said. “Maybe because it’s for the president, with bulletproofing, perhaps the price is Rp1 billion, but not Rp8 billion,” he added.

The procurement of the East Kalimantan Governor Rudy Mas’ud’s official vehicle worth Rp8.5 billion has sparked controversy and criticism. The Rp8.5 billion official vehicle prepared is a white hybrid Range Rover 3.0 LWB PHEV P460e model.

Initially, Rudy stated that the new official vehicle would be used to support the regional head’s activities, especially considering East Kalimantan’s position as a buffer region for the Nusantara Capital (IKN), which involves high mobility in welcoming guests.

“East Kalimantan is the Nusantara Capital, a miniature of Indonesia. Guests are not only from regional heads across Indonesia, but also global. Should the regional head use a low-quality vehicle? We maintain the dignity of East Kalimantan,” he said.

Rudy explained that the vehicle procurement also refers to Ministry of Home Affairs Regulation Number 7 of 2006. That regulation states that regional head vehicles of sedan type are maximum 3,000 cc and jeep type 4,200 cc.

The procurement is deemed insensitive to the state of national finances amid Prabowo’s campaign on budget efficiency.