Indonesia Probes $61 Million Electric Motorcycle Deal Amid Allegations of Price Gouging

Indonesian authorities are scrutinizing a massive Rp1 trillion ($61 million) electric motorcycle procurement project tied to the government's free nutritious meal program. The Attorney General's Office (Kejagung) has detailed how the deal for the Motor Listrik (Molis) program allegedly involved price inflation and manipulated delivery processes.

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After the meeting, suspect AM received information about the procurement of electric motorcycles at BGN with a budget of Rp60 million per unit.

The investigation focuses on Andri Mulyono, a commissioner at PT Yasa Artha Trimanunggal. Prosecutors allege that Mulyono met with former Deputy Head of the National Nutrition Agency (BGN), Lodewyk Pusung, in early 2025. Following this meeting, Mulyono's company, which operates in goods procurement and logistics, reportedly received information about the electric motorcycle procurement, with a budget of Rp60 million per unit.

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PT YAT did not have an active dealer or workshop and did not meet the requirements, and the procurement process had not yet begun at that time.

Prosecutors claim the procurement was not based on actual needs. Despite PT YAT not possessing an active dealership or workshop and failing to meet the required qualifications, Mulyono allegedly worked with an individual identified as 'AA' to acquire PT Adlas Sarana Elektrik (ASE). This move was reportedly intended to facilitate winning the electric motorcycle bid. Furthermore, Mulyono is accused of inflating the price of each motorcycle unit to approach the allocated budget ceiling. The total budget for the procurement was approximately Rp1.1 trillion.

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The budget is correct, around Rp1.1 trillion, approximately that amount. As for the markup, we are calculating it precisely. We can state there was a markup because the formation of the estimated price (HPS) was done unlawfully.