Indonesian Political, Business & Finance News

KPK States Regional Governments Need to Strengthen Procurement Governance for Goods and Services

| Source: ANTARA_ID Translated from Indonesian | Regulation
KPK States Regional Governments Need to Strengthen Procurement Governance for Goods and Services
Image: ANTARA_ID

Jakarta — The Corruption Eradication Commission (KPK) has stated that regional governments need to strengthen governance in the procurement of goods and services.

KPK Spokesperson Budi Prasetyo explained that the anti-corruption agency views this as necessary because goods and services procurement carries a high risk of corruption practices.

“The KPK believes this practice not only impacts state financial losses but also has direct implications for the quality of development and public services in the regions,” Budi told journalists in Jakarta on Monday.

Furthermore, he stated that strengthening procurement governance is necessary given the recent arrest operation (OTT) in the Rejang Lebong Regency Government, Bengkulu. In that case, he said, the actions of Muhammad Fikri Thobari, as Regent of Rejang Lebong, in demanding compensation equal to 10–15 per cent of project value for project victories could reduce work quality, as service providers or private parties must readjust their production costs in the field.

“If allowed to continue, this condition could impact the quality of infrastructure being built. Suboptimal infrastructure ultimately reduces the benefits of development for the public, despite substantial budget allocations,” he said.

He noted that the Indonesian Government is currently pursuing various budget efficiency policies, so every rupiah spent on development projects should be utilised to maximum effect and targeted appropriately.

Previously, on 9 March 2026, the KPK arrested Rejang Lebong Regent Muhammad Fikri Thobari, Deputy Regent Hendri, and 11 others in an arrest operation related to alleged bribery of projects within the Rejang Lebong Regency Government, Bengkulu.

On 10 March 2026, the KPK brought the Regent and Deputy Regent of Rejang Lebong along with seven others to Jakarta for intensive questioning.

On the same date, the KPK also announced Muhammad Fikri Thobari as one of five suspects in an alleged corruption case in the form of bribery.

On 11 March 2025, the KPK announced the identities of the suspects: Muhammad Fikri Thobari (MFT), Head of the Public Works, Spatial Planning, Housing and Settlement Services Office of Rejang Lebong Hary Eko Purnomo (HEP), Irsyad Satria Budiman (IRS) as the private party from PT Statika Mitra Sarana, Edi Manggala (EDM) as the private party from CV Manggala Utama, and Youki Yusdiantoro (YK) as the private party from CV Alpagker Abadi.

They became suspects in alleged bribery of projects within the Rejang Lebong Regency Government, Bengkulu, for the fiscal years 2025–2026.

The KPK suspects Fikri Thobari demanded bribes or project compensation of approximately 10–15 per cent from the three private parties so he would have funds planned to be distributed as year-end bonuses (THR) to his constituents.

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