Indonesian Political, Business & Finance News

Ignoring the Regional Secretary's Advice, Pekalongan Regent Fadia Insists on a 'Mother Company' Winning the Tender

| Source: DETIK Translated from Indonesian | Politics
Ignoring the Regional Secretary's Advice, Pekalongan Regent Fadia Insists on a 'Mother Company' Winning the Tender
Image: DETIK

The Corruption Eradication Commission (KPK) has designated Pekalongan Regent Fadia Arafiq (FAR) as a suspect in relation to the procurement of outsourcing services and other purchases within the Pekalongan Regency government. It is alleged that Fadia deliberately used a family company, colloquially known as a ‘mother company’, as the winner of tenders, even after warnings from her subordinates about potential conflicts of interest. ‘The Secretary of Regional Government and several others have repeatedly reminded the Regent about the risk of conflicts of interest in the procurements,’ said Asep Guntur Rahayu, Deputy for Enforcement and Execution at the KPK, at a press conference at the KPK building on Wednesday (4 March 2026). Asep said Fadia did not heed these cautions and remained fixated on using her family’s company to run procurement projects for the Pekalongan Regency government. ‘Nonetheless, the practice persisted,’ he added. After a year in office, her husband and her son established a company named PT Raja Nusantara Berjaya (RNB). Fadia is the beneficial owner of the company. The firm also contains Fadia’s campaign team, and she reportedly urged regional devices to award contracts to it. The KPK states that PT RNB secured outsourcing contracts across 17 regional agencies, three regional hospitals, and one district in 2025. Asep noted that PT RNB received Rp 46 billion in contracts with the Pekalongan Regency from 2023 to 2026. ‘Of this sum, only Rp 22 billion was used to pay outsourcing workers’ salaries. The remainder, totalling Rp 19 billion, was enjoyed and distributed to the Regent’s family,’ Asep said. The breakdown is as follows: - Pekalongan Regent Fadia Arafiq: Rp 5.5 billion; - Fadia’s husband, Ashraff: Rp 1.1 billion; - RNB Director Rul Bayatun: Rp 2.3 billion; - Fadia’s daughter Sabiq: Rp 4.6 billion; - Fadia’s daughter Mehnaz Na: Rp 2.5 billion; - Cash withdrawals: Rp 3 billion. Fadia has now been named a suspect and detained by the KPK. She faces charges under Article 12 letter i and Article 12 B of the Corruption Eradication Act in conjunction with Article 127(1) of the 2023 Indonesian Penal Code.

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