Responding to Prabowo's Remark, East Kalimantan Provincial Government Completes Return of Rp 8.5 Billion Official Vehicle

Spotlight from Indonesian President Prabowo Subianto on official vehicle budgets of up to Rp 8 billion has prompted a response from the East Kalimantan Provincial Government (Pemprov Kaltim). Pemprov Kaltim has confirmed that the return of Governor Rudy Mas’ud’s official vehicle, valued at Rp 8.5 billion, has been completed administratively. Head of the East Kalimantan Communication and Informatics Office, Muhammad Faisal, stated that the procurement process is considered finalised in terms of accounting and administration since the vehicle has never been used. “In terms of accounting and administration, the procurement process is deemed complete because the vehicle has never been used in the field,” Faisal said in Samarinda on Friday (20/3/2026), as quoted from Antara. The nearly Rp 1 billion difference represents tax deductions in the form of Value Added Tax (VAT) and Income Tax (PPh) that have been deposited into the state treasury. Following the cancellation of the purchase, Pemprov Kaltim is now coordinating with the Directorate General of Taxes to process the refund of those tax funds. This process is estimated to take two to three months. Faisal emphasised that the Rp 8.5 billion value includes various components, such as taxes, re-registration fees, inter-island shipping costs, insurance, and the supplier’s profit margin. According to him, the resolution of the administration and efforts to reclaim the tax funds are being carried out transparently as a commitment to supporting budget efficiency in line with central government directives. Previously, President Prabowo assessed that many government officials are still inefficient in using budgets. He cited the example of a regional government allocating up to Rp 8 billion for a governor’s official vehicle. Prabowo compared this to the presidential official vehicle, the domestically produced Maung, valued at around Rp 700 million to Rp 1 billion for the bulletproof version. “Perhaps because this is for the President with bulletproofing, so it’s Rp 1 billion, but not Rp 8 billion,” Prabowo said. He urged regional heads to prioritise budget use for public interests, including basic infrastructure development such as village bridges. On that occasion, Prabowo mentioned that the government has implemented budget efficiency measures amounting to Rp 308 trillion in the early stage of his administration. According to him, there is still much room for savings that can be made, both in ministries, institutions, and regional governments.