Rebuked by Prabowo, Cancellation of Kaltim's Rp8.5 Billion Official Vehicle Claimed Complete

The East Kalimantan provincial government has explained that the official vehicle for the governor, valued at Rp8.5 billion, has been fully returned. This statement comes after President Prabowo Subianto previously criticised the procurement of this official vehicle, deeming it inefficient.

“From a calculation and administrative perspective, the procurement process is considered complete because the vehicle has never been used in the field,” said the Head of the East Kalimantan Communications and Informatics Office, Muhammad Faisal, in Samarinda on Friday (20/3), as reported by Antara.

Faisal stated that the purchase value was Rp8.5 billion, but the supplier only received a net payment of Rp7.5 billion. The Rp1 billion difference was explained as deductions for Value Added Tax (VAT) and Income Tax (PPh).

These taxes have already been deposited by the East Kalimantan provincial government into the central government’s coffers and are now being processed in coordination with the Directorate General of Taxes for refund. The refund of these funds is said to take two to three months.

According to Faisal, the Rp8.5 billion figure already includes taxes, re-registration fees, inter-island shipping costs, insurance, and the supplier’s profit margin.

The procurement system for regional head facilities was previously carried out through direct appointment, which was legal because there was only one distributor in the Jakarta region.

“Through this administrative resolution and transparent efforts to recover tax funds, the East Kalimantan provincial government proves its commitment to supporting budget efficiency in accordance with the firm directives from the central government,” Faisal stated.

Prabowo, while hosting journalists in Bogor on Thursday (19/3), touched on inefficient regional spending patterns, including the Rp8.5 billion official vehicle purchase.

“Many officials, in my opinion, are inefficient. You see for yourselves, let’s be open about it. There’s a regional government that bought an official vehicle for the governor—how much? Rp8 billion,” said Prabowo.

“I am the President of the Republic of Indonesia; I use a Maung vehicle made in Indonesia. Its price is Rp700 million,” he added.

“Perhaps because it’s for the president, with bulletproofing, maybe it’s Rp1 billion, but not Rp8 billion,” he remarked.

The Rp8.5 billion official vehicle prepared for East Kalimantan Governor Rudy Mas’ud is a white hybrid Range Rover 3.0 LWB PHEV P460e model. Following the controversy, Rudy cancelled the vehicle and apologised in early March.