Overpayment on Mataram Mayor's Office Project: Contractor Returns Rp 418 Million

The contractor for the new Mataram mayor’s office project has returned Rp 418 million to the regional treasury following a Supreme Audit Agency (BPK) finding of an overpayment totalling Rp 851 million. “The funds have been returned to the regional treasury by the contractor,” said Lale Widiahning, Head of the Mataram Public Works and Spatial Planning Agency (PUPR), in an interview on Tuesday.

Approximately Rp 200 million remains outstanding, attributed to the consultancy supervision component. Under the rules, the deadline for returning funds based on BPK findings is 60 days from the signing of the official report. Lale stressed that administrative checks and project documentation were carried out properly, but a difference in perception arose between the BPK and the contractor regarding the calculation of work volumes. “The difference in perception with the auditors is that when there is excess volume, it is not calculated, but if there is a shortfall, it might be counted. It must match the backup data exactly,” she explained.

Beyond the repayment issue, concerns emerged about expert personnel allegedly not being present on site while still receiving honorariums. Lale assured that improvements would be made going forward, including requiring experts to attend meetings via Zoom so their input can still guide field decisions.

Previously, it was reported that the new Mataram mayor’s office project had an overpayment of Rp 851.5 million based on the BPK audit. The Mataram City Government is now following up on the findings. Regional Secretary Lalu Alwan Basri emphasised that the city government will not remain passive if there are administrative violations or financial losses in projects involving third parties. He stated that the contractor could be blacklisted if the issue is not resolved, and that the city government will continue to pursue the outstanding amount before the 60-day deadline expires.