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Indonesia Probes Electric Motorcycle Deal for Nutrition Program Amid Markup Allegations
🇮🇩 Indonesia /Health & Science

Indonesia Probes Electric Motorcycle Deal for Nutrition Program Amid Markup Allegations

From CNN Indonesia · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Ongoing story
  • Indonesian authorities are investigating alleged overpricing in the procurement of electric motorcycles for a nutrition program worth $1.1 trillion.
  • The Attorney General's Office is calculating the exact markup, stating the initial estimated price was illegally set, making the cost unreasonable.
  • Investigators are also examining potential illicit profit flows and have identified several suspects involved in the procurement of electric motorcycles, tablets, and televisions.

Indonesian prosecutors are scrutinizing a $1.1 trillion project for electric motorcycles intended for a free nutritious meal program, suspecting significant price inflation.

We can state there was a markup because the formation of the Estimated Price (HPS) was done unlawfully. So it was conditioned, not reflecting the real price or normal conditions, which would lead to competitive procurement and a competitive price. This did not happen, so we can say there was a markup.

— Syarief Sulaeman NahdiDirector of Investigation Syarief Sulaeman Nahdi explaining the basis for the markup suspicion.

The Attorney General's Office (Kejagung) is actively calculating the extent of the alleged markup. Syarief Sulaeman Nahdi, Director of Investigation, stated that the initial estimated price (HPS) was set unlawfully. This process, he explained, did not lead to competitive pricing, indicating a deliberate inflation of costs.

However, the amount is being calculated for certainty. But we have definitely confirmed that the price is unreasonable.

— Syarief Sulaeman NahdiSyarief Sulaeman Nahdi on the unreasonableness of the procurement prices.

"We can state there was a markup because the formation of the Estimated Price (HPS) was done unlawfully," Syarief said. "So it was conditioned, not reflecting the real price or normal conditions, which would lead to competitive procurement and a competitive price. This did not happen, so we can say there was a markup."

Approximately the same, almost the same as the procurement value, around 40 million rupiah something, 47 million rupiah approximately.

— Syarief Sulaeman NahdiSyarief Sulaeman Nahdi detailing the estimated price of a single motorcycle.

While the exact amount is still under calculation, prosecutors are certain the prices are "unreasonable." Preliminary findings suggest the HPS for a single motorcycle was around 47 million rupiah (approximately $2,800), close to the actual procurement cost. Investigators are also probing whether former officials received illicit profits. Several individuals, including a vendor and former officials from the National Nutrition Program (BGN), have been named suspects in the corruption case involving the procurement of electric motorcycles, tablets, and televisions.

We are still looking for that, still studying it.

— Syarief Sulaeman NahdiSyarief Sulaeman Nahdi on investigating potential illicit profit flows.
DistantNews Editorial

Originally published by CNN Indonesia in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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