KPK Warns of Corruption Risk in IDR 1.8 Trillion Village Cooperative Fan Procurement
The Corruption Eradication Commission (KPK) has reminded all parties involved in the planned procurement of fans for the Red-and-White Village/Neighbourhood Cooperative (Koperasi Desa/Kelurahan Merah Putih) programme to carry out the procurement process transparently and in accordance with regulations. The procurement has drawn attention because it is estimated to consume a budget of up to Rp1.8 trillion.
KPK spokesperson Budi Prasetyo stressed that the planning stage is a highly decisive aspect of goods and services procurement. According to him, every procurement must be genuinely based on need and must take into account the scale of priorities.
“In the process and mechanism of procuring goods and services, from the very beginning it must be properly ensured that the planning is right — whether the goods or services being procured genuinely match the need? What is the scale of priority?” said KPK spokesperson Budi Prasetyo at the KPK’s Red-and-White Building in Jakarta on Monday (20 July).
Beyond scrutinising the planning stage, the KPK also reminded the importance of drawing up the Owner’s Estimated Price (Harga Perkiraan Sendiri, HPS) accurately. The anti-graft body considers that an inaccurately prepared HPS has the potential to open loopholes for corrupt practices.
“Because this becomes the initial gateway when an alleged corruption offence occurs — for example, through mark-ups of prices and so on,” he said.
Budi also emphasised that the risk of irregularities does not arise solely from price-setting. Practices such as conditioning tender winners and splitting work packages so that direct appointment of vendors becomes possible are also a concern for the KPK.
For that reason, the KPK has asked the leadership of ministries, agencies, regional governments and internal oversight bodies to strengthen their supervisory functions from the very start of the procurement process.
“Therefore, the KPK continues to urge leaders in ministries, agencies or regional governments, as well as oversight units such as inspectorates, to proactively carry out monitoring and evaluation,” he said.
Previously, the issue of fan procurement for the Red-and-White Village/Neighbourhood Cooperative programme surfaced during a working meeting of Commission VI of the House of Representatives (DPR RI) with Cooperatives Minister Ferry Juliantono on 15 July 2026.
During that meeting, Commission VI member Mufti Anam questioned information regarding the procurement of around 1.8 million fan units with a budget value reaching Rp1.8 trillion. According to him, official information from the government regarding the procurement remained unclear.
“Today the public is abuzz with the issue of a procurement of 1.8 million fans worth Rp1.8 trillion. We then tried to seek information, but we could not obtain a single piece of information from the government regarding this procurement. We also sought information from the relevant parties, and they too dared not answer. So on this occasion, we would like to ask the Minister,” said Mufti.
Mufti also judged that the unit price of the fans in the procurement ought to be lower. Based on his observations across various marketplaces, the price per unit is estimated to be in the range of Rp338,000.
In response to the question, Cooperatives Minister Ferry Juliantono stated that the fan procurement process does not fall under the authority of the Ministry of Cooperatives.
“Regarding the fans, I don’t know about it because the procurement is not under us,” he said.
Ferry went on to say that the procurement budget value could reach Rp1.8 trillion if the price of each fan unit were in the range of Rp11 million. Nevertheless, he admitted he did not know the calculation in detail.
“However, I don’t know the specifics,” he continued.