Regulations
A procurement of fans for tens of thousands of cooperatives under the government’s Red and White Cooperatives (KDMP) program would amount to roughly Rp 2.56 trillion, significantly more than the Rp 1.8 trillion figure that sparked uproar last week.
Children walk past a building of the Merah Putih Cooperatives (KDMP) program that has yet to begin operations on July 11 in Ternate, North Maluku. (Antara/Andri Saputra)
Questions are mounting over government procurement for the Red and White Cooperatives (KDMP) program after reports of a Rp 1.8 trillion (US$100 million) procurement of fans triggered a social media uproar and scrutiny from lawmakers.Documents reviewed by The Jakarta Post and verified as authentic by state-owned PT Agrinas Pangan Nusantara, which is tasked with running the KDMP program, show that the planned spending is even higher, intensifying calls for greater transparency over what is purchased, how prices are set and how vendors are selected.
A procurement document published on Agrinas Pangan’s Instagram account shows that each cooperative was allocated a “Jumbo Industrial” fan set and two exhaust fans with a combined reference price of about Rp 40.8 million. The winning vendor’s price was approximately 21 percent lower, at around Rp 32 million per cooperative.
