Indonesian Political, Business & Finance News

Here's the modus operandi of Pekalongan Regent Fadia Arafiq's corruption: turning a family-owned company into a vendor of outsourcing services

| Source: VIVA Translated from Indonesian | Legal

Jakarta, VIVA – The Corruption Eradication Commission (KPK) has said Pekalongan Regent Fadia Arafiq (FAR) has become a suspect in a suspected corruption case after involvement in a conflict of interest through her family-owned company, PT Raja Nusantara Berdaya (RNB).

Deputy for Enforcement and Execution at the KPK Asep Guntur Rahayu explained that PT RNB operates in the outsourcing services or manpower leasing sector and actively served as a vendor in the procurement of goods and services within the Pekalongan Regency government, Central Java.

‘Here the conflict begins. If you merely form a company, that is not a problem. However, when a public official owns a company or is affiliated, and a family member then becomes or is actively involved as a vendor in the procurement of goods and services where they work, this becomes the starting point of the problem,’ he said at the KPK’s Red White Building in Jakarta, on Wednesday.

Furthermore, Asep said Fadia Arafiq was involved in a conflict of interest when she herself received benefits from PT RNB that won several procurement projects within the Pekalongan Regency government.

He stated that Fadia Arafiq is suspected of receiving money up to Rp5.5 billion during the 2023-2026 period through PT RNB.

‘Ms FAR amounts to Rp5.5 billion,’ he said.

Previously, on 3 March 2026, the KPK announced a series of ‘courtesy arrests’ during Ramadan, which also marked the seventh OTT of the year.

The KPK said it arrested Pekalongan Regent Fadia Arafiq together with aides and trusted associates in the Semarang area, Central Java.

The KPK then announced the arrest of 11 other people from Pekalongan, Central Java.

On 4 March 2026, the KPK named Fadia Arafiq as the sole suspect in a case of alleged corruption related to the procurement of outsourcing services or manpower leasing, and other procurements within the Pekalongan Regency government for the 2023-2026 fiscal year. (Ant)

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