Samarinda Mayor Cancels 3-Year Official Car Lease Worth Rp7.3 Billion

Samarinda Mayor Andi Harun has taken decisive action by terminating a controversial three-year lease contract for a Land Rover Defender, a move that underscores his administration's commitment to transparency and fiscal responsibility. The decision came after the Regional Inspectorate's review uncovered significant discrepancies between the vehicle's promised specifications and its substantial rental cost, which was set to total Rp7.3 billion over three years. The contract, initiated in 2023 with PT Indorent, involved a monthly rental fee of Rp160 million. Mayor Harun acknowledged lapses in both the procurement process and internal oversight, stating, "We admit frankly, there was a lack of thoroughness on both sides. It is not elegant to just blame the provider; the government also has a responsibility." This proactive stance aims to uphold the efficiency and accountability of regional budgets. The city government has formally cut ties with the service provider, with the vehicle slated for return under official administrative procedures. Further internal audits are underway to ensure financial and administrative compliance and to investigate any potential disciplinary breaches within the government. The Mayor has issued a formal directive outlining steps for contract evaluation, negotiation with the provider, and adherence to audit recommendations, emphasizing a swift and accountable resolution within 14 working days.

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Based on the internal examination of the Regional Inspectorate, discrepancies were found between the promised vehicle specifications and the rental price, as well as the actual realization in the field.