Indonesian Political, Business & Finance News

KPK: Pekalongan Regent Has Full Control Over PT Raja Nusantara Berjaya Finances

| Source: CNN_ID Translated from Indonesian | Legal
KPK: Pekalongan Regent Has Full Control Over PT Raja Nusantara Berjaya Finances
Image: CNN_ID

The Corruption Eradication Commission (KPK) has revealed that Pekalongan Regent Fadia Arafiq exercises full control over money inflows and outflows in PT Raja Nusantara Berjaya (RNB). The company, formed by Fadia’s family, operates in the provision of services and is active as a vendor in the procurement of goods and services for the Pekalongan Regency government.

‘Thus, in managing this company, the regent has full control to regulate money coming in, money going out, including distribution of funds to family members or to people within the Regent’s circle, including trusted associates,’ KPK spokesperson Budi Prasetyo said at the Merah Putih building in Jakarta on Friday, 6 March. Budi noted that Fadia manages and distributes funds, even arranging operations through a WhatsApp group named ‘Belanja RSUD’ with her staff. Every withdrawal for the regent is reported, documented, and sent via this WhatsApp group.

‘One of the evidences we found are chats in the WhatsApp group, together with documentation of every cash withdrawal intended to be distributed to the Regent; this is a key piece of evidence in the case,’ he added.

Refuting Fadia’s defence

During the briefing, Budi emphasised that the KPK rejects Fadia’s claim of ignorance of the law and local government governance, which she cited to defend herself. He noted that Fadia is an incumbent regent and a two-time officeholder, having previously served as vice-regent from 2011 to 2016.

‘The head of the regional administration should understand how to govern; she should be able to build a good, corruption-free governance framework,’ Budi said. He suggested Fadia should have a clear competence and vision to develop her region. ‘Do not trade influence, and avoid conflicts of interest, including interferences through family or trusted parties who push units or regional devices to favour her company,’ he said.

‘This would enrich the regent or those involved through trading of influence, as described in Article 12 letter i of the Corruption Eradication Act,’ he added.

KPK has named Fadia as the sole suspect in a case of alleged corruption in outsourcing services procurement and other procurements for the 2023-2026 fiscal year. She has been detained at the KPK detention facility in the Merah Putih Building for the first 20 days, until 23 March 2026.

She is accused under Article 12 letter i and Article 12(B) of Law No. 31 of 1999 as amended by Law No. 20 of 2001 on the Eradication of Corruption, in conjunction with Article 127(1) of the Penal Code (KUHP) No. 1 of 2023 regarding the Criminal Code.

The case was uncovered by the KPK through an Operation Termed ‘OTT’ conducted on Tuesday 3 March in the early hours.

Background to the case

The case began with Mukhtaruddin Ashraff Abu (ASH), Fadia’s husband and a member of the Indonesian House of Representatives (DPR RI) for 2024-2029, together with Muhammad Sabiq Ashraff (MSA), Fadia’s son and Pekalongan DPRD member, establishing PT Raja Nusantara Berjaya (RNB).

The company provides services and serves as a vendor for procurement of goods and services within the Pekalongan Regency government.

ASH became a commissioner of PT RNB, while MSA served as director from 2022 to 2024. In 2024, Fadia replaced MSA as director with Rul Bayatun (RUL), who is an employee and trusted associate. Fadia, who held the position of regent, is said to be the Beneficial Owner (BO) of PT RNB.

Additionally, most RNB employees are part of the regent’s campaign team assigned to work in various Regional Apparatus organisations (PD) within the Pekalongan Regency government.

In 2025, PT RNB dominated procurement projects for the Pekalongan Regency by handling outsourcing services in 17 PDs, three RSUDs, and one district.

From 2023 to 2026, transactions into PT RNB totalled Rp46 billion, sourced from contracts with PDs in Pekalongan Regency. The funds were used to pay outsourcing staff salaries amounting to Rp22 billion. The remainder, including Rp19 billion, was allegedly enjoyed and distributed to Fadia’s family. The allocations included Rp5.5 billion to Fadia, Rp1.1 billion to ASH, Rp2.3 billion to RUL, Rp4.6 billion to MSA, Rp2.5 billion to MHN (Mehnaz Na, another of Fadia’s children), and cash withdrawals amounting to Rp3 billion.

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