President Prabowo Criticises Rp 8 Billion Official Vehicle Purchase, East Kalimantan Provincial Government Responds
President Prabowo Subianto has criticised governors who allocate funds for new official vehicles worth Rp 8 billion. The East Kalimantan Provincial Government has assured that all processes for returning Governor Rudy Mas’ud’s Rp 8.49 billion official vehicle have been administratively completed amid scrutiny over efficiency.
“From a calculation and administrative perspective, the procurement process is considered complete because the vehicle has never been used in the field,” said Head of the East Kalimantan Communication and Informatics Office, Muhammad Faisal, as quoted by Antara on Saturday (21/3/2026).
Faisal detailed that from the total purchase value of Rp 8.49 billion, the fleet provider actually received a net payment of Rp 7.5 billion. The nearly Rp 1 billion difference in the transaction consists of state taxes in the form of value-added tax (VAT) and income tax (PPh) that have been deposited into the central government’s coffers.
Because the official purchase process has been cancelled, the East Kalimantan Provincial Government has coordinated with the Directorate General of Taxes (DJP) to process the tax refund, which procedurally takes two to three months.
Faisal emphasised that the Rp 8.49 billion amount has been fully accounted for, including taxes, re-registration fees, inter-island shipping costs, insurance, and the provider company’s profit margin.
The procurement system for regional head facilities was previously carried out through a direct appointment mechanism, which is legal because there was only one distributor in the Jakarta region.
“Through this administrative resolution and transparent efforts to reclaim tax funds, the East Kalimantan Provincial Government demonstrates its commitment to supporting budget efficiency in accordance with the firm directives from the central government,” he added.
Prabowo had previously criticised regional heads for not using budgets efficiently. Prabowo mentioned that there is a governor who uses Rp 8 billion for an official vehicle.
“There are many costs that should be handled by districts and provinces but are not implemented. For example, bridges, village bridges, the people have to shout, the president has to intervene. Sorry, there is village funding, where is the money? Where is the regent, the governor’s funds? But okay, I’ll take responsibility. So, we must be open, we must be fair,” said Prabowo on Thursday (19/3).
Prabowo assessed that the current regional spending pattern is still not efficient, including in the use of budgets for official facilities. “Many officials, in my opinion, are not efficient. You can see for yourself. Let’s be open. There is a district, eh regional government buying a governor’s official vehicle for how much? Rp 8 billion,” he revealed.