Samarinda Mayor Terminates Three-Year Official Vehicle Lease Worth Rp7.3 Billion

Samarinda Mayor Andi Harun has announced the termination of the lease contract for Land Rover Defender official vehicles, following findings of discrepancies in the Regional Inspectorate’s review.

Andi Harun explained that this decision stems from a comprehensive evaluation of the lease contract, which had previously drawn public attention.

The Samarinda City Government acknowledges negligence on the part of both the service provider and internal government, from the planning process to implementation.

“Based on the internal examination by the Regional Inspectorate, discrepancies were found between the agreed vehicle specifications and the lease price, as well as the on-site realisation,” he stated in Samarinda on Friday (17/4), quoted from Antara.

The official contract with PT Indorent as the vehicle provider began in 2023. This contract had a minimum duration of three years with a monthly lease value of Rp160 million.

According to the initial agreement, the contract was scheduled to end in October or November 2026, with an estimated total cost of Rp7.3 billion.

However, the Inspectorate’s audit results revealed discrepancies in specifications and pricing. The contract was ultimately terminated early on 16 April 2024 to maintain efficiency and accountability of the regional budget.

Andi Harun emphasised that this open stance is a form of the government’s responsibility to the public. Rather than avoiding controversy, the Samarinda City Government chose to hand the matter over to the Inspectorate from the outset for an objective examination.

As an initial step, the Samarinda City Government terminated the contract with the vehicle provider in accordance with applicable laws and regulations. The leased vehicles will be promptly retrieved and returned to the provider, accompanied by an official handover document as part of proper administration.

The internal audit continues to ensure compliance with financial and administrative aspects. The examination will also delve into potential disciplinary violations within the government.

“We honestly admit that there was a lack of diligence on both sides. It would not be elegant to blame only the provider; the government also bears responsibility,” said Andi Harun.

As concrete follow-up, the Mayor of Samarinda issued official letter Number 100.4.4.1/1035/200 dated 15 April 2024, instructing the City Secretary of Samarinda to follow up on the review results.

There are five main points in Andi Harun’s instructions: first, reorganising or returning the Land Rover Defender vehicles while ensuring administrative, technical, and legal aspects.

Second, contract evaluation, by identifying the rights and obligations of the parties proportionally. Third, deliberation or pursuing resolution with the service provider to achieve a fair agreement.

Fourth, compliance by implementing all APIP recommendations accountably, and finally, reporting the implementation results within a maximum of 14 working days.

Andi Harun stressed that every rupiah of the regional budget must provide tangible benefits to the community and be managed in accordance with good governance principles. The Samarinda City Government will also calculate potential budget refunds from the terminated contract.

Andi stated that this incident serves as an important lesson for the entire Samarinda City Government apparatus to be more cautious in future procurement of goods and services.

“We will improve the system and tighten oversight. This is part of efforts to prevent corruption and abuse of authority,” he added.

Currently, Andi Harun continued, the Samarinda City Government is awaiting the results of the further audit to determine if there are violations requiring legal action or further administrative sanctions. This momentum is expected to strengthen the integrity and public trust in the city government.

Based on the collected data, the vehicle lease budget planning was prepared since 2022. This step was taken as an alternative because the plan to procure new units at that time could not be realised.