DIY Cooperative and SME Agency Claims Compliance After Milk Machine Project Corruption Raid
The Yogyakarta Special Region’s Cooperative and SME Agency (Dinkop UKM DIY) has issued a statement after its office was searched by the Special Crimes Investigation Team of the DIY High Prosecutor’s Office (Kejati DIY) on Wednesday (24/6). Dinkop UKM DIY explained the chronology of the alleged corruption case concerning the procurement of milk production house machinery for the 2023 fiscal year.
In an official written statement, Dinkop UKM DIY detailed the case that led to the search. In 2023, the agency was tasked with procuring Milk Production House Machinery sourced from a Deconcentration Fund allocation (APBN) from the Ministry of Cooperatives and SMEs worth Rp 8,169,247,000.
“Of this allocation, Rp 4,740,781,000 was designated for the procurement of Factory Sharing Equipment/Machinery,” the official statement read.
The procurement process for the project was carried out in accordance with applicable procedures and regulations, resulting in CV Anggrek Asri Jaya being named the tender winner with a contract value of Rp 4,622,844,750. Throughout the work period, procedures and execution controls were continuously implemented, including the involvement of the Ministry of Cooperatives and SMEs, and a contract extension was granted.
However, by the specified deadline, CV Anggrek Asri Jaya was declared unable to complete its work based on the Commissioning Test assessment for the DIY Province Milk Joint Production House, witnessed by experts and professional practitioners in UHT milk production. “The Commissioning result, meaning the production process test, could not be carried out because the work was incomplete. Consequently, the contract with CV Anggrek Asri Jaya has been terminated and the remaining payment cannot be disbursed,” the agency explained.
Subsequently, the Ministry of Cooperatives and SMEs, together with Dinkop UKM DIY, followed up on the situation by conducting an in-depth audit with specific objectives, involving the Center for Materials Processing and Failure Analysis (CMPFA) at the University of Indonesia. “Based on these recommendations, the DIY Cooperative and SME Agency has taken a number of necessary steps so that a solution to this problem can be immediately addressed,” the agency stated, emphasising its commitment to following applicable laws and the ongoing process.
The search by the Kejati DIY Special Crimes Investigation Team took place on Wednesday (24/6) from 09:15 WIB to 14:30 WIB at the Dinkop UKM DIY office. The operation was based on an Investigation Order and a Search Order from the Head of the DIY High Prosecutor’s Office, as well as a ruling from the Yogyakarta District Court. Investigators searched the archive room, treasurer’s room, secretary’s room, and the head of agency’s room, seizing approximately 35 documents believed to be related to the alleged corruption. The prosecutor’s office stated that investigators are currently requesting the DIY Representative Office of the Financial and Development Supervisory Agency (BPKP) to calculate the state’s financial losses.