Indonesian Political, Business & Finance News

Purbaya Assures Kopdes Pickup Budget Will Not Be Disbursed Before Audit

| Source: CNBC Translated from Indonesian | Economy
Purbaya Assures Kopdes Pickup Budget Will Not Be Disbursed Before Audit
Image: CNBC

Finance Minister Purbaya Yudhi Sadewa has responded to findings by Indonesian Corruption Watch (ICW) regarding alleged price mark-ups in the pickup truck procurement project for the Koperasi Desa/Kelurahan (Kopdes/Kel) Merah Putih programme. Minister Purbaya assured that the budget disbursement process for the vehicles will undergo an audit. According to him, the Ministry of Finance will only disburse the budget once it has passed the audit. This statement addresses ICW’s findings concerning suspected fund inflation in the pickup procurement project. “It will be audited later. I will only pay what has been audited,” Purbaya told reporters at the DPR RI Building in Jakarta on Tuesday (14/7/2026). He also stated that his ministry does not yet possess the data highlighted in ICW’s findings. ICW has indicated it will report the alleged price mark-ups in the Kopdes Merah Putih pickup procurement project to the Corruption Eradication Commission (KPK). “It will be audited, and once it passes, then they can bill me, and I will pay. So I am secure, safe,” Purbaya stressed. ICW’s findings on the budget inflation were obtained from monitoring the pickup procurement carried out by PT Agrinas Pangan Nusantara (APN) for the programme. ICW suspects a purchase price discrepancy of Rp 61-69 million per pickup unit. If accumulated with the procurement target of 80,000 units, ICW estimates the potential for rent-seeking could reach between Rp 4.86 trillion and Rp 5.54 trillion. In light of these findings, ICW has recommended a temporary suspension of the project, the full disclosure of all procurement documents to the public, and an investigation by law enforcement officials to ensure there are no rent-seeking practices or abuse of authority in the use of state finances. “Overall, ICW’s findings indicate that the KDMP pickup truck procurement potentially fails to meet the principles of transparency, accountability, efficiency, and fair business competition,” ICW stated in its report.

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