Indonesian Political, Business & Finance News

KPK Uncovers Pekalongan Regent's Family-Run Business Web, Rp46 Billion of Projects Monopolised

| | Source: MEDIA_INDONESIA Translated from Indonesian | Politics
KPK Uncovers Pekalongan Regent's Family-Run Business Web, Rp46 Billion of Projects Monopolised
Image: MEDIA_INDONESIA

Jakarta — The Corruption Eradication Commission (KPK) has named Pekalongan Regent Fadia Arafiq as a suspect in a case of alleged corruption in the procurement of goods and services (PBJ) through outsourcing. The case stems from the establishment of the family-owned company PT Raja Nusantara Berjaya (RNB), which is alleged to have monopolised projects in the Pekalongan Regency government.

‘PT RNB is a service-provision company that actively served as a vendor in the procurement of goods and services within the Pekalongan regional government,’ said Asep Guntur Rahayu, Deputy for Enforcement and Execution at KPK, at the Merah Putih Building, KPK, South Jakarta, on Wednesday (4/3).

Fadia is strongly suspected of pressuring department heads to award contracts to RNB in a range of tenders. Even when other vendors offered cheaper prices, she insisted on using PT RNB, described as the ‘parent company’. Besides intervention, KPK found leakage of the Harga Perkiraan Sendiri (HPS). Regional units were asked to submit the HPS to PT RNB earlier so the company could adjust bid values. ‘That violated the procedures in the procurement of goods and services,’ Asep said.

From 2023 to 2026, PT RNB has carried out projects in 17 regional units, three RSUDs and one district, with a total value of Rp46 billion. KPK notes that of that total revenue, Rp19 billion allegedly flowed into Fadia and her family.

The KPK disclosed that all budget distributions are directly controlled by Fadia through intensive communications in a WhatsApp group. For her actions, the Pekalongan Regent has now been detained for the initial 20 days to support the investigation.

The Pekalongan Regent Fadia Arafiq says she did not realise she had committed a crime, explaining her background as a dangdut singer.

KPK has named Fadia Arafiq as the sole suspect in the PBJ corruption case. Fadia will be detained until 23 March 2026.

Erma explained that the modus operandi in PBJ corruption cases includes fictitious projects, budget misappropriation, mark-ups, fictitious reports and embezzlement.

PT Personel Alih Daya Tbk (Perseroan) held an incidental Public Exposé on Tuesday, 2 December, conducted both offline and online.

Many workers remain in contract positions, outsourced, and many do not have social security.

Outsourcing has long been considered an efficiency solution for many companies in Indonesia.

The abolition of outsourcing without comprehensive reforms risks pushing formal workers into the informal, less-protected sector. President Prabowo Subianto plans to abolish outsourcing; the abolition of outsourcing is seen as a move towards fair treatment of workers.

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