Indonesian Political, Business & Finance News

Squeezed for District Head and Forkopimda Bonus, SKPD Agencies in Cilacap Forced to Borrow Money

| | Source: REPUBLIKA Translated from Indonesian | Legal
Squeezed for District Head and Forkopimda Bonus, SKPD Agencies in Cilacap Forced to Borrow Money
Image: REPUBLIKA

Corruption Eradication Commission (KPK) investigations have revealed that Cilacap District Head Syamsul Auliya Rachman (AUL) has been extorting various regional government work units (SKPD). The KPK views this extortion as harmful to the public as it will ultimately reduce the quality of public infrastructure projects.

Syamsul justified the extortion money as necessary for his personal holiday allowance (THR) and Forkopimda (the Regional Coordination Body). Some officials were forced to borrow money to meet the amounts demanded by Syamsul, ranging from millions to hundreds of millions of rupiahs.

“Based on information we received from various SKPD heads, some of them had to borrow money,” said KPK Deputy for Prosecution and Enforcement Asep Guntur Rahayu on Monday (16 March 2026).

The KPK discovered that those who borrowed money did not repay it from their own pockets, but instead through project financing schemes.

“When they borrow, ultimately it involves project collusion. The borrowed money will be repaid through projects to be carried out in 2026,” said Asep.

The KPK stressed that this unlawful conduct harms Cilacap residents. The quality of projects meant for the public will deteriorate.

“There is harm that will be borne by Cilacap residents because the money collected comes from project collusion. When the projects are executed under these conditions, the quality of the work will definitely decline, as part of the funds have already been diverted or taken for purposes like this,” Asep stated.

Previously, the KPK named Cilacap District Head Syamsul Aulia Rachman (AUL) as a suspect in an extortion case at Cilacap Local Government in Central Java. Syamsul was named a suspect along with Regional Secretary (Sekda) Sadmoko Danardono (SAD).

This designation came after Syamsul and associates were caught in a raid (OTT) on Friday (13 March 2026). Through the operation, the KPK arrested 17 individuals, with 13 of them taken to KPK headquarters for further questioning.

As a result of their actions, Syamsul and Sadmono are alleged to have violated Article 12 letter e and/or Article 12B of Law Number 31 of 1999 concerning Eradication of Corruption Offences as amended by Law Number 20 of 2001 on the eradication of corruption offences, as well as Article 20 letter c of Law Number 1 of 2023 concerning the Indonesian Criminal Code.

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