KPK: Bank Notification Procurement Violates Regulations, Causing State Losses

The Corruption Eradication Commission (KPK) has stated that the procurement of banking notifications within state-owned banks and state-owned enterprises (SOEs) in the telecommunications sector is deemed non-compliant with regulations, resulting in losses to the state.

“The procurement mechanism was not carried out in accordance with the provisions, such that the alleged unlawful acts committed by the parties involved in the goods and services procurement process have caused financial losses to the state,” said KPK Spokesperson Byp Budi Prasetyo to journalists in Jakarta on Monday.

Budi noted that the KPK estimates the number of banking notifications resulting from this procurement could reach billions over a certain period. “The cost of which is charged to each customer at approximately Rp750,” he added.

Previously, on 5 June 2024, the KPK announced an investigation into alleged corruption related to the procurement of banking notifications within state-owned banks and telecommunications SOEs. The investigation commenced without the designation of specific suspects.

Furthermore, the KPK stated that the procurement includes banking notifications via Short Message Service (SMS) and the WhatsApp (WA) messaging application. As a result of this procurement of goods and services, the state is estimated to have suffered losses of up to Rp2 trillion.