Sisa Jejak Korupsi APD Covid-19 #REALITAS

Summary

In 2020, amid the COVID-19 crisis, Indonesia's emergency procurement of PPE became embroiled in corruption. Despite warnings of inflated prices and irregular contract procedures, the Ministry of Health proceeded with the purchase of 5 million PPE sets, involving several suppliers and partners. Investigations revealed significant financial discrepancies, including inflated costs and unauthorized third-party involvement. Audit findings exposed a 46% profit margin, well above the legal limit, resulting in a massive financial loss to the government. This case highlights the need for better oversight and transparency in emergency procurement during public health crises.

Takeaways

• 😀 In 2020, the COVID-19 pandemic led to nearly 7 million confirmed cases in Indonesia, with healthcare workers risking their lives to combat the virus.
• 😀 Personal protective equipment (PPE) became an essential need in the medical field to protect against the virus, prompting emergency procurement by the government.
• 😀 The emergency procurement process, however, was allegedly exploited by certain individuals, leading to corruption and misuse of funds.
• 😀 Budi Silvana, head of the crisis center at the Ministry of Health, was responsible for managing the procurement of 5 million sets of PPE in March 2020.
• 😀 PT Permana Putra Mandiri (PPM) was directly contracted by the Ministry of Health to supply PPE, but they involved PT Energi Kita Indonesia (PT EKI) as the sole supplier, raising concerns about the legitimacy of the deal.
• 😀 The unit price for each PPE set was set at IDR 48,400, a price that was flagged as excessively high by Indonesia's Public Procurement Agency (LKPP).
• 😀 Despite LKPP's recommendation to cancel the contract due to the inflated prices, the procurement contract proceeded without any changes.
• 😀 The contract between the Ministry of Health and suppliers was deemed to violate procurement regulations, with an irregular third party involved in the signing process.
• 😀 Further scrutiny revealed that the agreement had a contract duration exceeding one year, which violated financial regulations and lacked proper government approval.
• 😀 An audit by Indonesia's Financial and Development Supervisory Agency (BPKP) in May 2020 identified financial discrepancies amounting to IDR 625.1 billion in state losses, with suppliers overcharging the government by up to 46.27%, far exceeding the permitted profit margin.

Q & A

What was the main challenge faced by Indonesia during the COVID-19 pandemic in 2020?

The main challenge was the widespread COVID-19 infections, with nearly 7 million people testing positive. Medical personnel were on the front lines, risking their lives to protect themselves and others from the virus.

What was the role of Personal Protective Equipment (PPE) during the COVID-19 pandemic?

PPE became a critical necessity for medical professionals to protect themselves from the deadly virus. It was essential in preventing the spread of COVID-19.

How did the Indonesian government respond to the PPE shortage?

The government organized an emergency procurement of PPE to meet the urgent need across the country. However, this process became marred by corruption allegations.

What was the issue with the PPE procurement process?

The procurement was allegedly used as an opportunity for financial misconduct. There were inflated prices and questionable vendor contracts, leading to corruption claims.

Who was Budi Silvana, and what role did he play in the PPE procurement?

Budi Silvana was the Head of the Crisis Center at the Ministry of Health. He was also appointed as the commitment-making official for the procurement of 5 million sets of PPE in 2020.

Which company was tasked with supplying the PPE, and what was unusual about the vendor selection?

PT Permana Putra Mandiri (PPM) was chosen to supply the PPE, but they subcontracted the supply to PT Energi Kita Indonesia (PT EKI), which was unusual and raised concerns about transparency in the procurement process.

What price discrepancies were found in the PPE procurement?

The price of each set of PPE was set at 48.4 million rupiahs, which was considered inflated. The Indonesian Government's Procurement Policy Agency (LKPP) had already flagged this price as unreasonable.

What did the Indonesian Procurement Policy Agency (LKPP) recommend regarding the contract?

LKPP recommended canceling the contract due to the excessive price, but the contract continued despite these recommendations.

What were the key findings of the audit conducted by the Financial and Development Supervisory Agency (BPKP)?

The BPKP audit found that the procurement process involved significant financial irregularities, leading to a loss of approximately 625 billion rupiahs for the state. There were also discrepancies in the pricing, and the profit margin exceeded legal limits.

How did the profit margin for PT Permana Putra Mandiri (PPM) compare to legal limits?

The profit margin for PPM was 46.27%, which greatly exceeded the maximum allowable profit margin of 15% set by government regulations.

What other irregularities were discovered in the procurement process for the PPE?

Besides the excessive prices and inflated profit margins, the contract also violated several procurement guidelines, such as involving a third party outside of the legal framework, lack of proper approval from the Ministry of Finance, and contract terms that exceeded one fiscal year.