KPK warns stakeholders over Rp1.8 trillion village cooperative fan procurement

The Corruption Eradication Commission (KPK) has reminded stakeholders about the procurement of electric fans for the Red and White Village/Sub-district Cooperative programme, which is estimated to cost Rp1.8 trillion. KPK spokesperson Budi Prasetyo stated that the planning process for the procurement of goods and services must be thoroughly ensured from the outset, questioning whether the items being procured are truly needed and what the priority scale is. Budi said the KPK also reminded stakeholders about the preparation of the owner’s estimated price (HPS) to prevent it from becoming a gateway for alleged corruption. He noted that this is the initial entry point when alleged corruption occurs, for example through price mark-ups. Furthermore, Budi said the KPK cautioned stakeholders against conditioning the project winner and splitting up projects to enable direct appointment of vendors. The KPK continues to urge leaders in ministries, agencies, or regional governments, as well as supervisory units such as inspectorates, to proactively conduct monitoring and evaluation. The issue arose after House of Representatives Commission VI member Mufti Anam questioned the procurement of fans for village cooperatives during a meeting with Cooperatives Minister Ferry Juliantono, citing the fantastic budget. Mufti said the public was shocked by the issue of procuring 1.8 million fans worth Rp1.8 trillion and that he could not obtain any information from the government about it. He argued that the unit price should be much cheaper, around Rp338,000 based on his observations in the marketplace. Minister Ferry Juliantono responded that the fan procurement was not under the authority of his ministry. He added that the budget could reach Rp1.8 trillion because one fan unit was priced at around Rp11 million, though he admitted he did not know the exact details.