KPK Flags Corruption Risks in Rp1.8 Trillion Fan Procurement for Village Cooperative Programme

The Corruption Eradication Commission (KPK) has warned that the procurement of goods and services is a sector highly vulnerable to corruption, as it turns its attention to the planned purchase of fans worth Rp1.8 trillion for the Koperasi Desa/Kelurahan Merah Putih (KDKMP) programme. KPK Spokesperson Budi Prasetyo stated that the risk is confirmed not only by cases handled by the commission but also through studies and monitoring, including its coordination and supervision functions. He noted that procurement is one of eight focus areas for the KPK, as it is frequently exploited by certain individuals for alleged corrupt practices. Budi emphasised that the planning stage must be strictly scrutinised from the outset to ensure that the goods or services being procured align with actual needs and priority scales, particularly regarding the preparation of the Owner’s Estimated Price (HPS). The KPK cautioned that the HPS formulation is often the entry point for corruption, such as through price mark-ups, and highlighted the practice of conditioning projects so that predetermined parties win contracts in ministries, agencies, or local governments. This often involves splitting large projects into smaller ones to meet the criteria for direct appointment, ensuring that pre-selected vendors secure the work. Consequently, the KPK continues to urge ministry leaders to proactively monitor the procurement process from the very beginning, ensuring that priority scales are established and that the entire process, from planning to execution, is carefully supervised to prevent vendors from supplying goods with lower specifications than ordered.