How Vendor Bosses Inflated Prices of SPPG Electric Motorcycles: Modus Operandi and Findings

Corrupt practices in the procurement of environmentally friendly vehicles are beginning to surface. The modus operandi used by senior vendor officials to inflate, or mark up, prices in the electric motorcycle procurement project for the Charging Device Provision System (SPPG) is now under intense scrutiny. Based on information gathered, this practice was allegedly carried out by manipulating production cost components and the supply chain before the vehicle units reached the government or relevant agencies. This scheme not only harms state finances but also hampers the acceleration of the national electrification programme. The method used by the vendor boss to mark up the price of SPPG electric motorcycles is suspected to involve several systematic stages. This markup practice directly impacts the selling price per unit, making it far more expensive than the market fair price. As a result, budget allocations that could have been used to procure a large number of units are instead absorbed by a handful of unscrupulous vendors. Public policy analysts assess that weak oversight in the tender process and verification of the Domestic Component Level (TKDN) created loopholes exploited by the vendor bosses. A comprehensive audit of all vendors involved in the SPPG project is deemed necessary to ensure price transparency. The authorities are expected to take firm action against individuals proven to have manipulated prices in order to maintain the integrity of Indonesia’s energy transition. Every Rupiah allocated from taxpayers’ money must be accounted for transparently and accountably.