Through the inves�ga�on of the journalists par�cipa�ng in the fellowship, the e-tender ‘game’ can be discovered in full view. Their findings also confirm the validity of the opentender.net instrument made by ICW to help the people monitor the work of the government, especially in the public procurement sector. Besides journalists, CSOs, students, researchers and the public in general can benefit from the opentender.net tool for monitoring, due to the ease of Investigating which the tool is used.

Adnan Topan Husodo Public ICW Coordinator Procurement using OpenTender 1 Table of Contens

Published by ICW 33 ICW Coordinator 4 Adnan Topan Husodo Foreword The Case of ICW Public Campaign Division the Missing Siti Juliantari 8 Christian Evert Hand Tractors Dewi Anggraeni Mentor Notes Sigit Wijaya Asri Tri Undari 42 10 Collusion in Mentor Team & Editor Sunat Dana Anton Aprianto the Executive Jajang Jamaludin Proyek Mustafa Silalahi Minibus Scholarship Journalist Olahraga Seplin Bachrir Tender Aqilah Nurul Khaerani Latif Muhammad Yunus 17 Jeane Bernetje Rondonuwu The Star 54 Starting from Cover & Layout Design in the Sigit Wijaya Shophouse Construction Icon License Flaticon.com Materials 22 Jl. Kalibata Timur IVD 58 No.6, RT.10/RW.8 · Not a Bullseye +62 21 7901885 Profile of the email: [email protected] Fellows

2 3 Foreword finding out the potential of fraud, the public can then put pressure the government, as it is supported by the strength of information and data that are accountable.

In developing this instrument, ICW has been fully supported by the National Public Procurement Agency (LKPP), which is an autonomous agency under the President. A significant support is the provision of data from all e-tenders of the government, both national and regional, based on all Electronic Procurement Services (LPSE) in . The data are processed in opentender.net to produce five types of basic information used for determining the potential for fraud in each tender.

It has to be recognised that each community-based monitoring instrument has its life and death dependent on the community itself. If no one, or only a few people, understand and use the monitoring instrument, public control becomes less effective. Thus, ICW cooperates with various parties, especially the civil society in various regions and journalists, to be able to use opentender.net through fellowship activities. Opentender.net, A Technology- With the support of MAVC-Hivos, fellowship activities targeting journalists in various regions have been implemented. Participants are invited to Based Instrument to Improve become familiar with opentender.net in a session of special training, and then requested to utilise the tool in their investigative work. The result is Public Control quite satisfactory, as much potential for violations in public procurement in the regions where the programs were sampled were found, despite the procurement having been done electronically. It is generally agreed that to eradicate corruption, a state needs to adopt information technology (IT) in managing and providing public service to Using opentender.net, journalists participating in the fellowship easily the citizens. Nowadays, IT-based approaches to improve the quality of identify the type of the procurement project to be selected for further governance are widely used in various states. The speedy growth of the investigation. The next step for the journalists was to search for IT industry has contributed to the development of the application of IT in additional documents, such as contracts, company registration, deed of the public sector. establishment, project specifications, comparative market prices; and investigate the truth of the information, such as corporate address, name Indonesia Corruption Watch (ICW), as an important element of the of companies participating in the tender, owner or controller of the anti-corruption movement in Indonesia, has realised the potential of IT company, etc. utilisation to encourage accountability and transparency in governance. One of ICW’s initiatives was the creation of a monitoring tool for the In the utilisation of opentender.net developed through investigative sector of electronic-based government procurement of goods and journalism work, at least we find a more accurate illustration on how services, called opentender.net. This web-based instrument is useful the application of information technology in the management of public for identifying potentials of fraud in government procurement of goods sector budget does not necessarily mean that governance will improve. It and services that have been conducted through electronic tenders. By 4 5 means that the assumption that technological intervention in the public sharper with other evidence and documents, however, due to the limited sector will improve the quality of governance and reduce corruption is time and budget, these factors have shown to be constraints to the not an unqualified one. investigation of the fellowship participants.

Referring to the findings of the investigative work of the fellowship Kalibata, 23 September 2017 participants, several modes of misappropriation in the procurement of government goods and services continue to occur despite the electronic tender mechanism being used. These include, first, indications of rigging Adnan Topan Husodo in the tender process, where the number of participants in the bidding is ICW Coordinator adequate to avoid accusations of monopoly, but in the final stage of the bidding project, most participants do not submit an offer price. There are indications that the bidding participants are ‘encouraged’ to withdraw, so that in the final stage, the winner would be the company that has been appointed since early on.

Second, multiple companies participating in the e-tenders in a project are controlled by a single person. The many participants registering are merely formality, as the controller or owner is the same person. In order to control these companies, the businessperson can ‘borrow’ another person’s company at a cost, which is paid up in front. Third, several companies participating in the tender do not have clear addresses. While in the tender documents they mention addresses, when these addresses are visited, often the companies are nowhere to be found. Often the addresses are residences instead of offices, or shops whose activities differ from what have been mentioned in the tender documents.

Through the investigation of the journalists participating in the fellowship, the e-tender ‘game’ can be discovered in full view. Their findings also confirm the validity of the opentender.net instrument made by ICW to help the people monitor the work of the government, especially in the public procurement sector. Besides journalists, CSOs, students, researchers and the public in general can benefit from the opentender. net tool for monitoring, due to the ease of which the tool is used.

We hope that the works of the journalists participating in the opentender. net fellowship can inspire more journalists to make use of the opentender.net website in conducting their journalistic work. Of course, the investigative work of the fellowship participants can be made even

6 7 Mentor Notes For the sake of improvement of the next batch of fellowship, we have the following notes. First, the selection of the proposals for participants must be more stringent in order to select the best candidates. The proposal must be comprehensively evaluated by the mentors and experts Commitment, Tenacity and from ICW. The proposal must not only be of importance and of interest, but also achievable, from the aspects of data collection, candidate Communication capabilities, and time constraints of the program. Thus, mastery of the initial data or materials of the report must be a major consideration in the selection process.

Second, related to the criteria of the fellow candidates, there should be Commitment is the fundamental capital for a journalist about to write an a special consideration for young journalists who have passion, courage in-depth report, even more so, an investigative report. The collection of and tenacity in collecting data. While their journalistic experience might materials for these two types of reports is very much different compared be relatively small, young journalists tend to have greater willingness to to straight news, for which statements of source persons are often learn compared to ‘well-established’ older ones. This consideration is also adequate. The process of writing in-depth and investigative reports needs important so that the fellowship benefits young talented journalists who extra effort. still have many opportunities to practice their knowledge and skills in in- depth or investigative reporting. Six journalists accepted in the selection of the proposal for the Fellowship of Indonesia Corruption Watch in 2017 have a valuable opportunity Third, related to communication during the mentoring process. In-depth to test and sharpen their skills in reporting and writing in-depth or and investigative reporting is usually written as a team, with multiple investigative reports. layers of editing. Thus, each fellow must maintain communications with team members, superiors and mentors. The fellow is the person with Through the site www.opentender.net, the ICW has provided information the greatest knowledge of the field conditions, indeed. However, they about government projects with indications of irregularities, giving still need someone else to discuss with when finding out new ideas or ideas for the report. Then, through training and mentoring, they also information, and especially when finding difficulties in the field. The receive transfer of knowledge and skills from anti-corruption activists, editor or the mentor, other than acting as ‘consultant’ can also act as auditors of government goods and services procurement, and journalists ‘sparring partner’ or even ‘devil’s advocate’ for the reporter. experienced in investigative report. Finally, we observe many important lessons to learn from the fellowship Unfortunately two of the fellows fail to uphold their commitment. Within program – for participants, mentors and the organizers as a whole. the allocated time of four months, both fellows have failed to finish the Of course we are open to feedback from anyone concerned of the article, as initially promised. Their behavior has been seriously noted improvement of journalistic practices and eradication of corruption in the by the organizers and mentors of this fellowship. On the other hand, country. despite limitations and obstacles, the other four fellows have finished their assignments on time, and write interesting reports illustrating the The Mentor Team misconduct in the procurement of goods and services in the regional government level. Anton Aprianto Jajang Jamaludin Mustafa Silalahi 8 9 Southeast Budget Cut of Sports Project Fund

The food and drinks for athletes in the Regional Training Centre for the 2016 National Sports Competition Week in Kendari were suspected to be misappropriated. The modus operandi was by reducing the number of meals, and reducing the number of days. The winner of the tender was suspected to be close to the organizing committee.

Photo Illustration

10 11 THE gray painted, two-storied The director of CV Bintang Griyatama out of the 12 bidders, only CV Bintang there were 22 fasting days during the shophouse on 143 MT Haryono Road, Erwin Riswantyo confirmed that his Griyatama submitted an offer. training center. When the training Kendari, Southeast Sulawesi, is now company implemented the project. There was indeed an accusation session was opened, the athletes and the Kimia Farma pharmacy. Before “We won the tender due to our that the project was set up to be trainers were only provided with one September 2016, when the pharmacy experience,” said Erwin. “Previously won by CV Bintang Griyatama. meal and one snack. According to the began operating in the shophouse, we won the tender for the provision However, Erwin Riswantyo denied schedule, there should have been according to the Southeast Sulawesi of snacks in the governor’s office, the the accusation. He stated that there three meals and two snacks. Electronic Procurement Services DPRD and the regional police.” was nothing irregular in the project (LPSE) Portal, it was recorded as the tender process. Erwin claimed that his Silat trainer Alimin experienced the office of CV Bintang Griyatama. Other than doing business in the company won, due to the equipment reduction of meals for his team. provision of food and drinks, the and experience. “We have a big During Ramadan, they received only The company has been recorded company also does business in office kitchen, and this is our business,” he one meal and one snack. “There to move to a restaurant in Mokoau stationery, electronics, motor vehicles, said. were two trainers and four athletes Subdistrict, Kambu District. While computers, printing and mining. receiving the reduced meals,” he said. having its premises in low-key The food and drinks were to be However, after the training was Sepak takraw trainer Heriansyah also locations, the company was not provided for athletes, trainers, concluded, the project left an complained about the same issue. He small fry. According to the records mechanics and task force members unpleasant taste. In the system of regretted the reduction in the amount of the LPSE, the company under the during the training center. According general procurement planning, the of food for his team, which was done leadership of Erwin Riswantyo has to the Decree of the Chairman of KONI project was to last between 14 June without his approval. “There has been won scores of projects tendered by Sultra No. 160 of 2016, the number 2016 to 15 September 2016, or 94 no money paid in lieu of the reduced the Southeast Sulawesi Provincial of athletes was 69, trainers 21, and days. However, based on documents meals,” he said. Government, with a value of billions mechanics 3. obtained by the reporter of Rakyat of rupiahs. Sultra, the training was concluded on The suspicion of misappropriation of However, there were different 14 September 2016, or one day early. the project funds was also raised in One of the projects won by the numbers for the task force. According This means that there is a one-day the case of several sports with try outs company is the provision of food and to the verification report of the difference between the plan and the or trainings outside the region. During drinks during the Regional Training sports teams for PON XIX in West implementation. the training center, several sports held Centre for the 2016 National Sports Java (2016), published on 16 February their trainings outside the region in Competition Week (PON). The project 2016, the number of the members This difference is suspected to be a preparation of the PON. These are was implemented by the Southeast of the task force was 30 persons. modus operandi for misappropriation chess, shooting, billiards, badminton, Sulawesi Sports Committee (KONI However, in the Decree of the of funds. Not only that, another way rowing and motorcycle racing. Sultra). The LPSE portal mentions Chairman of KONI Sultra, signed one to misappropriate was to reduce the that the project was funded by the month later, the number rose to 51. number of meals for the athletes. As the training was conducted out regional budget, with an amount When the project was tendered, as This, for example, happened when of the province, the meals budget of IDR 2.2 billion, of which IDR 468 recorded in the LPSE portal, there the opening of the training session for the athletes was given in cash million was for snacks and IDR 1.7 were 12 companies bidding for the coincided with nine days of the fasting form. However, the funds seemed billion for food and drinks. project. However, by the deadline, month (Ramadan). It is recorded that to have been misappropriated. The

12 13 just pay what is ordered to,” he said owner of the company winning the Eryckson Ludji, the deputy chairman tender. “But I am close to everyone in for finances, has not given his Kendari,” he said. Provision of Food and Drinks for Athletes comments regarding Kasman’s statement. Initially he was willing Erwin did not deny that he and IDR 2.2 billion to be contacted by Rakyat Sultra; Eryckson knew each other. However, however, he hang up on his phone he denied that he won the project due IDR 468 million for snacks and IDR 1.7 billion for food and drinks when asked about the procurement of to collusion. “If thereis a new similar food and drinks for the training center. project, I’m not going to bid on it. Cut Mechanical Previously, to a number of local my throat. The profits I gained are too team media, Eryckson claimed to be good small. friends with Erwin Riswantyo, the 3persons Athlete Trainers Task Force 69 21 30/51 persons persons persons

There are different versions on the number of the members of the task force. According to the verification report of the sports teams for PON XIX in West Java (2016), which was published on 16 February 2016, the number of the members of the task force was 30 persons. However, in the decree of the Chairman of the National Sports Committee, signed one month later, the number rose to 51.

money was received by several for 45 days; the remaining 5 days trainers, from Deputy Treasurer I of were not paid at all. There were Koni Sultra Kasman. It was during the two athletes and one trainer in the disbursement of the funds when the training. “The food was for two irregularity occurred. athletes and one trainer,” he said.

Najib Husen, billiard trainer, suffered Deputy Treasurer I Kasman confirmed from the irregularity in the funds that he only disbursed the amount for Top 10 Procurement is most at risk in Southeast disbursement. In the document 45 days for billiard. “Why the amount Sulawesi Province by 2015 requesting the disbursement, Najib given was reduced? Because, it’s a requested that the funds be provided policy. Not my decision. That was for a period of 50 days. However, the decision of Deputy Chairman III Kasman only provided the amount Eryckson Ludji. I am only a treasurer, I 14 15 Southeast Sulawesi The Star in the

The location of alleged office of Shophouse CV Bintang Griyatama

16 17 IN a period of only four years, CV their bids. This is also recorded in the No. 36 of 27 February 2012. In the government officials. For example, Bintang Griyatama has become a e-procurement portal. Other projects amendment, the position of Beppy he personally knows Deputy Head III strategic partner of the Southeast of CV Bintang Griyatama include eight Siahaya as limited partner was of Southeast Sulawesi KONI Eryckson Sulawesi Provincial Government. In construction projects and drinks for replaced by Muhammad Basry. The Ludji, who manages the finances of the period, according to opentender. athletes, and one procurement of act also recorded that Ms. Siahaya the organisation. Eryckson Ludji even net portal introduced by Indonesia goods. was no longer part of the company. attended the birthday party of Beppy Corruption Watch, the company has In the amendment, CV Bintang Siahaya, former partner of CV Bintang won eleven significant regional project According to the founding documents Griyatama was declared to be Griyatama. The presence of the tenders. of CV Bintang Griyatama, the company domiciled and premised on Jalan MT official in the birthday celebrations is was founded in Act No. 29 dated 9 Haryono No. 143, Kendari. Based on found in the photograph he uploaded From these eleven, ten of them were February 2011. The founders were the investigation of the reporter of on his Facebook account on 12 May projects of the Southeast Sulawesi Erwin Riswantyo, Mus, and Beppy Media Rakyat Sultra, there are three 2017. Provincial Government, and the other Siahaya (Erwin Riswantyo’s wife). shophouses with the number 143 was a project of the Konawe Utara In Act No. 29, Erwin Riswantyo was on the street. The first shophouse is Eryckson confirms that he knows Regency Government. The value recorded as the general director, Mus the Istana Listrik shop. Next to the Erwin Riswantyo. In relation to of each project reached billions of as director, and Beppy Siahaya as shop, there is another shophouse the birthday wish, he stated, “It is rupiahs. limited partner. with the same number, however, it is too personal. It is no business for the office of PT Prima Karya Sarana journalists,” he said on the phone on One of those was the provision The document also mentioned Sejahtera (PKSS) Kendari, which is a 7 June 2017. “Regarding whether I of food and beverages during the eight business areas of the labour management company. Both am friends with her, I am close with Regional Training Centre (Pelatda) company. These are general trade, shophouses are located in Bende everyone in Kendari.” for the National Sports Competition construction, industry, services, Subdistrict, Kadia District, Kendari. Erwin Riswantyo stated that in 2016. The project was held by printing, agriculture, transport and There is another document stating Eryckson Ludji is not his only contact the Southeast Sulawesi National mining. In general trade, CV Bintang the Erwin was once living on Jalan in Southeast Sulawesi KONI. He Sports Commission. The provincial Griyatama has businesses in computer MT Haryono No. 143 in Lalolara also mentioned a number of other e-procurement portal mentioned equipment, network elements, Subdistrict, Kambu District. Currently officials. “I do not only know Eryckson. that the project was funded by the office stationery, electrical goods, the shophouse is leased by Kimia I also know Tasman Taewa (Deputy provincial budget, with a value of Rp computerisation goods, mechanical Farma. Head I KONI), Elvis Basri Uno (Acting 2.2 billion. goods, motor vehicles, textiles and Secretary KONI) and also Lukman food & beverages. The frequency of which the (Head of KONI) I know them all,” he During the tender, the project was company wins major tenders from said. bid by 12 companies, including CV After its founding on 9 February the Southeast Sulawesi province Bintang Griyatama. However, only it 2011, CV Bintang Griyatama has is inseparable from Erwin’s role. Even though admitting that he knows submitted a bid. The other companies experienced an amendment of its Among businessmen, Erwin has the officials of Southeast Sulawesi only registered, but did not place articles of association, through Act the strongest network to regional KONI, Erwin confirms that he is 18 19 free from corruption, collusion and wish to Beppy Siahaya from Eryckson nepotism in the projects related to Ludji and his success in winning the the agency, such as provision of food tender for the project of provision of Provision of Food and Drinks for and beverages for athletes. “There food and beverages. “Why would you Southeast Sulawesi Athletes is no corruption in this project,” he connect these?” he asked. declared. *** Erwin also brushed off allegations of

the relations between the birthday Interested 12 companies

Company submitted offer 1(CV Bintang Griyatama)

11 other companies only registered, but did 11 not submit offers

The businesses of CV Bintang Griyatama are computer equipment, network elements, office stationery, electrical goods, computerisation goods, mechanical goods, motor vehicles, textiles and food &

List of Projects won by CV. Bintang Griyatama beverages.

20 21 one of the surviving aid cows in JenepontoSapi Bantuan untuk daerah Kabupaten Jeneponto

South Sulawesi Aid in the form of livestock in writer, who had just arrived at the hut, the cowshed,” Anton pointed at the often fails to whose floor was full of dry grass, on hut. achieve its objectives. Before it is 27 July 2017. Not a transferred to other farmers, the Anton invited the author to sit in a cow has died, or sold elsewhere. Call the man Anton. He is one of plastic chair. On the table were a glass Bullseye the recipients of livestock from of red syrup and a jar of chocolate THE three men were talking under the government in Turatea village, cookies. The afternoon sunlight broke the open roof of the wooden hut. Tamalatea district, , in from the gaps in the wooden wall of One of them rose up and greeted the in South Sulawesi. “This used to be the hut.

22 23 Anton recalled that he received a cow here. I’m overwhelmed,” said Anton. as aid from the local government in Possibly because of lack of food, May 2016. Initially, Anton knew there the cow became sickly. Anton called was a distribution of livestock from his a farmer support official from the cousin, who was the head of a farmer Animal Husbandry Department. group in Turutea Village. Initially, Anton hoped that the cow would be treated. “But, he asked for To obtain the cow, Anton had to gas money,” Anton said. “Because I provide copies of his ID card and had no money, I did not give any.” family card. These are the easy part Anton’s passion to keep raising the of the administration. Anton was cow began to falter. Moreover, some burdened by the obligation to pay Rp neighbours suggested that he sell the 1 million to obtain the aid. cow. The reasons are, if the cow did not die, it could be stolen. In addition, Anton wondered why he had to pay other farmer group members have to receive the aid. “Usually it’s free,” already sold their cows. Top 10 Most Risky Procurement in South Sulawesi Province in 2016 he said. However, with expectations of profit, Anton borrowed money from Anton had asked the opinion of the his neighbour. Even then Anton could head of the farmer group. He initially only obtain Rp 700,000. suggested that Anton keep the cow, Anton is not the only person who it has to be reported to the village in case there were an officer from the failed to take care of government aid head,” said Sappo. At that time, according to Anton, Livestock Service coming to check. cattle. On 29 April 2017, the author there were seven farmer group But, at the end of the conversation, met several residents of Bontomanai Bontomanai Village Secretary, Bustam, members who received cows. “I got the head of the farmer group made Village, Bangkala District, Jeneponto, confirmed that in 2014 a number of the smallest cow,” Anton said. “Maybe an offer to Anton for the cow, at a low who received cows as aid. One residents received aid in the form of it’s because I only paid Rp 700,000,” price. resident, call him Sappo, recalled cows from the government. The aid said the father of one child. that he received a cow from the was proposed in fiscal year 2013. In After some time, the officer from government in 2014. When received, 2015-2016, no villagers received any Anton only managed to keep the cow the Livestock Service did not come. the cow was about 1.5 years old. cows. The village of Bontomanai will for a year. According to him, the cow Finally, because he needed money, Like other farmers, Sappo also had receive more cattle this year, which was a picky eater. It only wanted to Anton sold his cow “Come to think of difficulty raising the cow because of was proposed in 2014. eat fresh green grass. The village of it, the effort and the cost of raising the the lack of fresh grass in his village. As cow are not worth the selling price,” Turatera is located in an arid region. a result, the cow became sickly, and Bustam explained that many villagers said Anton, who also had to share Fresh green grass cannot be found died about a year since the handover. have difficulty in raising livestock “profits” with the neighbour who lent anywhere. “It’s hard to find grass “The procedure is, if the cow dies, because most of Jeneponto is barren him money. 24 25 and rocky. Green grass for fodder is Provincial Government continues to director’s name is Rizal Effendy. On limited. “Moreover, there are many budget the procurement of cattle to 9 April 2017, the author visited CV livestock thieves,” said Bustam. be distributed to the community. The Procurement Kiswah’s address on Jalan Perintis The story from Turatea District, amount of the budget is increasing Kemerdekaan No, 7, , as Jeneponto, is equally gloomy. Tono, from year to year. of Cattle shown on the South Sulawesi LPSE not his real name, received an aid Aid in South website. Apparently, it is the address cow in 2015. Tono received the cow In Jeneponto Regency, for example, of the residence of Rizal’s mother. because he is related to the official of in 2015, the government allocated Rp Sulawesi, The office of CV Kiswah has moved to the livestock raising group. 219 million for cattle, whose tender Jalan Pelita Raya, Makassar, about 10 was won by CV Mawaddah. Then, in 2016 kilometers from its original address. Before receiving the aid, according 2016, the budget jumped to Rp 1,889 to Tono, every prospective recipient billion. This time, the tender was won received counseling from the Animal by CV Kiswah Ma’al Attar. Husbandry officer. They were taught how to make cages and raise cattle, Not only Jeneponto Regency received and were introduced with the artificial aid in the form of beef cattle. Based insemination technique. on data from the e-procurement Jeneponto Regency (LPSE) of South Sulawesi, in 2016, the Points noted by the In fact, according to Tono, raising government also provided budget for IDR 1,889 billion BPK: CV Kiswah Ma’al Attar cows in areas lacking fresh grass is beef cattle for , still difficult. Moreover, some of the worth Rp 1,880 billion and for Sinjai 1. The distribution of livestock Bulukumba Regency is often not accompanied distributed cows were unhealthy. Regency, worth Rp 1,316 billion. The by agreements. In fact, the IDR 1,880 billion Therefore, Tono also sold the cow. tenders for both regencies were also document is very important CV Kiswah Ma’al Attar According to him, he knew several won by CV Kiswah Ma’al Attar. to control and monitor the members of the farmer group who animals. 2. The proposal arrived after sold their cows only one month after In the same year, the Government of the decision of the Regional IDR 1,316 billion the distribution. “The habit here is South Sulawesi distributed beef cattle Revenue and Expenditure CV Kiswah Ma’al Attar Budget (APBD) was made. to sell aid cows, because they find it for , worth Rp 2,257 Enrekang Regency difficult to take care of the cows,” said billion and Takalar, worth Rp 1,318 3. In the 2014 APBD elaboration, there is no attached list of Tono. billion. The tender winner for both IDR 2,257 billion recipients of livestock, recipient CV. Pao Poerwosari regencies is CV. Pao Poerwosari. addresses, and the amount *** The author investigated CV Kiswah of value to be given to each Although there are many tales Ma’al Attar, which often wins tenders recipient. IDR 1,318 billion of the failure of the cattle aid in of procurement of cows. In the CV. Pao Poerwosari many locations, the South Sulawesi auction document, the company 26 27 When visited at her home, Rizal’s The author did not meet Rizal, points highlighted in the Supreme mentioned that the proposals of mother said that his son has worked because he was busy participating in Audit Agency (BPK)’s 2015 report. livestock aid request from community for CV Kiswah since 2014. After tenders in other areas. At the South According to BPK, the management of groups often do not follow the rules. CV Kiswah won the tender for the Sulawesi LPSE, CV Kiswah is not only livestock assets in the Livestock and In 2014, for example, the proposal procurement of cows in 2015-2016, listed as the winner of the cattle Animal Health Service Office of South arrived after the decision of the Rizal, who graduated from the Faculty tender. The company also has won a Sulawesi is “inadequate”. Regional Revenue and Expenditure of Animal Husbandry of Hasanuddin variety of auctions, from procurement Budget (APBD) was made. As a result, University, was appointed as one of of uniforms to sports equipment. The BPK noted that as of 31 December in the 2014 APBD elaboration, there the directors. “My son only follows 2015, there were 472 heads of cattle is no attached list of recipients of the orders of the bosses,” said the **** –worth Rp 1,853 billion – which were livestock, recipient addresses, and the mother. The distribution of cattle aid in South handed over to the community to be amount of value to be given to each Sulawesi is included among the raised under certain agreements. recipient. The official rule, according to the BPK, is that the livestock breeding Despite finding indications of should be based on agreement irregularities, BPK does not expressly documents between the Livestock state that there is a loss incurred to Service Office and the recipient group. the state in the distribution of cattle The documents stipulate that the aid. The Head of South Sulawesi BPK recipient of the cattle must report Representative, Endang Tuti Kardiani, the development of the cattle they said that the findings of the BPK about raise, and deliver the offspring of the the cattle are administrative in nature. animals to the Animal Husbandry The former Director General of Animal Department. The cattle will only be Husbandry and Animal Health of the the property of the farmers – based Ministry of Agriculture, Professor on a deed of grant – after they have Muladno, gave a special note on fulfilled their obligations. the livestock aid, which he called “charity-oriented”. According to In fact, according to BPK’s findings, the Muladno, similar programs are prone distribution of livestock is often not to corruption. “The beneficiaries accompanied by agreements. In fact, are party politicians and livestock the document is very important to traders,” he said.

Value of procurement package of beef cattle control and monitor the animals. The for Jeneponto Regency document is also important for when Party politicians, according to the animals die or have offspring. Muladno, could influence local The Supreme Audit Agency also governments to distribute the 28 29 livestock to the constituents of the The problem is, according to Rusdin, politician or the party. “The basis for after receiving assistance, some selection is not the professionalism farmers do not fulfill their promise. of the breeders, but their political They do not take care of cattle well, loyalty,” Muladno said. so many cattle died. When the cows died, according to Rusdin, many As for the traders, said Muladno, farmer groups delayed their reports. get a profit not only as the winner “Hence, according to the findings of the tender. They can also reap of BPK, many cows have not been profits when the breeders resell the recorded,” said Rusdin. animals at low prices. “The trader enjoys profits in both sides of the #### transaction. While the breeders cannot improve their lot, “said the professor from the Bogor Agricultural Institute.

The Public Relation Officer of Animal Husbandry and Animal Health, Rusdin, denied that the cattle aid has been wrongly targeted. According to him, the procurement of the cows took place in an open manner. The Livestock Service Office distributes All Projects Ever Won by CV. Kiswah Ma’al Attar cattle aid based on the needs and proposals of farmer groups.

Before distributing the aid, Rusdin said, the Livestock Service Office also conducted field visits to assess whether the group sending the proposal is worthy of assistance or not. “Usually, when our teams review the location, the farmer group officials promise to make cages and to care for the cattle well,” said Rusdin. 30 31 Sulawesi Selatan The Case of the Missing Hand Tractors

Aid in the form of 75 hand tractors from the South Sulawesi regional budget has been unclear in the distribution process. It has been problematic since the bidding process.

Photo Illustration

32 33 THE 30 meter-long stony path to obtain various documents at the not know about the tractors from the of scores from 1 to 20 on corruption, connects the warehouse to Perintis Food Security Office. “Only when they province,” said M. Asri, member of the hand tractor procurement scored Kemerdekaan road in Makassar. It was approve, you can take the item from Andalan farmer and fishermen group an ‘18’. The higher the number, the 11.30 when Makassar Terkini visited the warehouse,” he said. in . higher the possibility of corruption. the warehouse where the farming “A score above 15 is a warning light implements were stored, on Friday 30 Our conversation came to an end **** of potential violation,” said Kes June 2017. when the call to prayer was sounded. The tale of the hand tractors began Tuturoong, ICW researcher. The warehouse guard departed to the on 25 August 2015. At that time, the There was only one man, claiming to mosque, riding the motorbike he was Farming, Food Crops and Horticulture Makassar Terkini traced the hand be the guard of the warehouse owned cleaning as we talked. Office of South Sulawesi – now tractor tender at the South Sulawesi by the Food Security, Food Crops and the Food Security, Food Crops and LPSE website. Several irregularities Horticulture Office of South Sulawesi Makassar Terkini visited the Horticulture Office – held a tender could be observed. Among other Province. warehouse to trace the existence of for the procurement of hand tractors things, out of the total of 27 the hand tractors, provided by the through the Procurement Services companies registering for the tender, From the gap between the doors of South Sulawesi Provincial Government Unit. The value of the agreed contract only three companies presented their the warehouse, two two-wheeled from the 2015 budget year. was Rp 2.39 billion, compared to a bids. Of the three companies, only hand tractors were visible. “Those self-estimate cost of Rp 2.4 billion and one completed the required files, belong to farmers in Pinrang,” said Two years after the bidding for the a budget ceiling of Rp 2.625 billion. namely CV Wisama Cahaya Rezky. the guard, who have worked since procurement of the hand tractors, The South Sulawesi Electronic Further, CV Manunggal Jaya, which 2008 and lived in the official residence farmer groups in various regencies Procurement Service System (LPSE) offered a lower price than CV Wisama in the warehouse premises. His in South Sulawesi continue to be announced the winner of the tender failed in the tender, as it did not duties include taking out the farming unaware about the assistance in the on 8 September 2015. Of the 27 provide an offer letter. CV Manunggal implements from the warehouse form of tractors, funded by the South companies competing in the tender to Jaya was recorded to have registered when farmer groups arrive carrying Sulawesi Provincial Budget. “I don’t provide the goods, CV Wisama Cahaya in South Sulawesi LPSE’s tenders for letters from the Food Security know there is a distribution of tractors Rezky was declared the winner. CV several times, however, the company Office allowing them to take their from the province,” said Tallasa, head Wisama made an offer valued at Rp never submitted their bids. implements. of the Ashabul Yamin farmer group 2.39 billion for the procurement of 75 from Moncongloe district in Maros units of hand tractors. Another company offering a slightly Makassar Terkini asked him how to regency. lower price than CV Wisama was CV get the tractors as aid. “That would be According to www.opentender.net, Putra Jongaya. The company did not difficult. Even I cannot get one. Even Faisal Daeng Rurung, head of managed by the Indonesia Corruption win the tender because its technical though I am also in a farmer group,” Tompobalang 1 farmer group from Watch (ICW), procurement of hand bidding documents were incomplete. said the guard. According to him, Barombong district in tractors is included in the “Top 10” Two other tender participants, CV to obtain the hand tractor or other also said the same thing. “There is corruption prone procurement of Alam Mutiara and PT Wahana Abadi farming implements, the farmer has no information,” Faisal said. “We do goods in South Sulawesi. In the range Pratama, had the same address for 34 35 their ‘offices’: a shophouse on Jalan Makassar Terkini then investigated the Terkini, Azhar claimed to be the owner Azhar explained that based on the Skarda N, Kompleks Mangasa No. 4, winning company. Based on data in of CV Wisama. official report, the 75 hand tractors Makassar. Two other companies have LPSE, CV Wisama was located at Jalan were distributed to 47 farmer groups. similar names, namely CV Permata Karunrung Raya No. 27, Makassar. The When CV Wisama won the hand However, Azhar claimed that he Wisama and CV Wisama Cahaya director of the company was listed as tractor tender, according to Azhar, did not know the continuation of Munawar. When visited, the address Rezky. Makassar Terkini found that the he was still serving as the company the hand tractor distribution. “My was that of a residence. There was no owners of both companies are in fact director. Munawar was only appointed company was only assigned for signboard marking that the location is related. director of CV Wisama after the procurement. The distribution to a corporate office. change of deed in front of a notary on farmer is part of the authority of the 26 July 2016. Agriculture Office,” said Azhar. The Head of Administration, A number of neighbors told us that Registration and Verification Section the owner of the house was named Azhar still remembered when CV of South Sulawesi LPSE, Herbudhie Alif, a retired civil servant in the Public Azhar also initially promised to Ristanto, said that agency only has Works Department of South Sulawesi. Wisama won the auction of 75 units provide contract documents for the the responsibility to bring together When Makassar Terkini knocked of Yanmar brand hand tractor in 2015. hand tractor procurement. But, later the providing companies and the on the door, Alif came out to greet. “At that time, I was the one who made he withdrew his promise. “I have no procurement committee to make However, he was puzzled when asked the offer,” he said. right to provide data. Please go to the the bidding process transparent. if the house was the office of CV Agriculture Office,” he said. According to him, LPSE does not Wisama, whose director was named Azhar’s claim was confirmed by interfere with the bidding process. Munawar. data from the procurement plan At the end of the talks, Azhar said that What determines the schedule information system on the LKPP site: the person ‘borrowing’ his company Alif then entered again and called and the winning bidder is the https://sirup.lkpp.go.id/sirup/rup/ was Andi Pahlevi, the nephew of his wife. The wife confirmed that the working group in the South Sulawesi pencarian. In the site it was noted Governor Syahrul Yasin Limpo. “The house was indeed once the office of Procurement Services Unit. “Our that the hand tractor package has the person using the company as a front CV Wisama. However, the company’s procurement number ID of 3861283 was Andi Pahlevi, nephew of Mr. responsibility is limited to facilitating,” director was a Haji Muhammad Azhar, and numbered 75 units. Herbudhie said. not Munawar. “He already moved Syahrul (Governor of South Sulawesi),” to Maros,” said the woman who said Azhar. Similarly, the head of South Sulawesi claimed to be Azhar’s elder sister. Despite winning the tender, Azhar PSU Urgamawan did not explain in After his brother married and moved claimed to never have seen the hand Azhar then believed his company detail the bidding process. “If you to Maros, the house was still used as tractors directly. “My company’s would not be used for illegal things. want to find out about that (the hand the correspondence address of CV name was borrowed,” he said. As Because the dignity and nam e of tractor bidding process), ask the Wisama. the Director of CV Wisama, Azhar the Governor of South Sulawesi are Agricultural Office,” said Urgamawan. admitted signing the goods handover, at stake. “I believe in Pope (Andi “What is clear is that we have been After several phone calls, Azhar finally complete with photos of farmer Pahlavi’s nickname). The governor’s agreed to meet in Maros. The meeting audited.” groups mentioned as the recipients of dignity is on table, Pak Syahrul never took place at a cafe near the Maros the hand tractors. taught us anything bad,” said Azhar. bus terminal on 18 May. To Makassar 36 37 Andi Pahlevi was now registered as a **** Member of the Makassar DPRD. He Makassar Terkini repeatedly requested sat in Commission C representing the an explanation from the Office Gerindra Party for the period of 2014 of Food Security South Sulawesi. - 2019. However, no official was willing to Hand give explicit information. The Chief of Tractor Met at the Commission C meeting Food Security, Fitriani, was reluctant room in Makassar on 10 July 2017, to comment on the hand tractor Aid Pahlevi denied ever borrowing CV assistance. “I do not want to discuss Wisama to participate in the tender. the tractor again, it’s done. All has “I do not know a Haji Azhar, let alone been distributed,” she said. borrow his company,” said Pahlevi. units “I have not been taking care of such Fitriani suggested Makassar Terkini Yanmar activities for a long time.” met the Head of Facilities and brand Given the physical features of Haji Infrastructure of Food Security 75 Azhar and his home address, Pahlevi Office, Arfain. Makassar Terkini had keeps shaking his head. “If I meet previously met Arfain in his office on Budget ceiling: IDR 2.625 billion directly I may know it. Obviously, I 16 May 2017. However, at that time, Self-estimate cost: IDR 2.4 billion do not know about borrowing the Arfain claimed not to know about the company,” Pahlevi said. hand tractor project. “I’m new here,” Contract: IDR 2.39 billion said Arfain. The Executive Director of the Irregularities: Indonesian Legislative Monitoring A week later, on 23 May 2017, 1. Out of the total of 27 companies registering Committee, Syamsuddin Alimsyah, Makassar Terkini returned to meet for the tender, only three companies said that the practice of borrowing Arfain. He still does not want to presented their bids. companies violate the rules and are provide data receiver tractor hand 2. CV Manunggal Jaya, which offered a lower prone to corruption. “The borrowed assistance funded APBD 2015 it. price than CV Wisama failed in the tender. company must ask for commission However, this time Arfain paved the 3. Two tender participants, CV Alam Mutiara money,” said Syamsuddin. “If it’s way. “Please contact Mr. Hermanto,” and PT Wahana Abadi Pratama, had their true that the company’s borrower is he said. offices in the same shophouse on Jalan a member of the DPRD, that’s a big Skarda N, Kompleks Mangasa No. 4, mistake.” Hermanto was the former Head of Makassar. Facility and Infrastructure, who was

38 39 replaced by Arfain. Hermanto is now However, until the 10-business day and NGOs contacted by Makassar In the end, until this report was retired while being an onion farmer in deadline stipulated by the Public Terkini in Sidrap, Maros, Bone, and written, the 75 hand tractors bought Enrekang Regency. Information Disclosure Act, the Food Takalar also mentioned their lack of using the regional budget of South Security Office has not provided knowledge of where the hand tractors Sulawesi in 2015 continue to be Hermanto’s name was also mentioned the requested information. “Please were distributed. What exists are missing. by Amin Manurung, Chairman of the communicate with Mr. Hermanto,” aid from the national government,” ULP Working Group on hand tractor Arfain repeated the suggestion he said Ilham Lahiya, member of Bumi procurement in fiscal year 2015. received. Mentari, an NGO, in Maros. According to Amin, all hand tractor auction processes are in accordance Hitting the “wall” with the Office, with the procedure. “Whether the Makassar Terkini tried to investigate goods exist or not, only Mr. Hermanto in some areas in South Sulawesi. In knows,” said Amin. addition to requesting data from farmer groups, the media’s journalists On 5 June 2017, Makassar Terkini also sought information from farmer met Hermanto in the Office of Food group networks. Security Department. At that time, Hermanto invited us into a room in From a number of agencies and front of the hall. “This project does farmer groups in the regencies and exist. However, it is a secret. Only municipalities, Makassar Terkini investigators can request the data,” received data of hand tractor said Hermanto. recipients from the government in 2015. The lists of farmer groups In the project, Hermanto claimed to receiving the aid were collected serve as Committing Officer. However, from the Agriculture Office of Barru when asked again the number and Regency, Bulukumba Regency and recipients of hand tractor assistance, . However, the Hermanto again fell silent. “I forgot,” tractors given as aid to these three

he said. regions did not come from the South Top 10 Most Risky Procurement in Sulawesi regional budget. “We South Sulawesi Province in 2015 Not receiving the list of hand tractor received them from the national recipients, on 26 May 26 2017, budget,” said the head Makassar Terkini submitted a letter of office, Aminullah Arsyad. requesting public information to the Head of Food Security Office. The network of farmer groups 40 41 Sulawesi Utara Collusion in the Executive Minibus Tender

Car procurement projects in the North Sulawesi Provincial Government are allegedly controlled by one company since seven years ago. Detailed specifications in each tender are allegedly set to win the company. Opentender.net concludes there is potential for Minibus VVIP untuk tamuExecutive Pemerintah minibus of a province corruption in the tender. Provinsi Sulawesi Utaraparked at Samratulangi Airport Minibus Khusus TamuNorth SulawesiVIP Pemerintah Provinsi Sulawesi Utara

THE latest minibus owned by the Wilfred was the driver chosen to drive highly polished exterior. The North cars with a score of 19, from a scale North Sulawesi Provincial Government the Toyota Hiace Commuter minibus. Sulawesi Provincial Government of 1-20. The higher the score, the is practically a mobile entertainment He is an experienced driver who was has three similar cars. All three higher the possibility that the project venue. There is a refrigerator, once trusted to drive the car of the have been budgeted in the Regional indicates corruption. karaoke set and high end stereo, plus Deputy Governor of North Sulawesi. Government Budget (APBD) of North automatic massagers in the chairs. He felt lucky to be trusted to drive the Sulawesi Province in 2016 through Tender Participants Everything is completely automated, car. “It has nice brakes,” said the man the General Bureau with a value of Rp The bidding for the minibus was including the doors. “The comfort also known as Apet. 2 billion. The winner was PT Hasjrat unusual. Several companies listed equals a first-class airline seat. All the Abadi. Indonesia Corruption Watch as participating in the tender have guests were satisfied,” said Wilfred A luxury car, indeed, but its inception (ICW) through opentender.net listed known that they lost the tender Bororong, in early July 2017. is not necessarily as smooth as its the procurement of these luxurious from the outset. “We took part 42 43 in the tender, but did not send an procurement of three minibuses. It She insisted she never signed any committee was formed. “Basically, offer, because the specification has used the simple e-auction method documents related to the project. though, the procurement process of already led to one company,” said with post-qualification by the Working The employee, she said, used to be three minibus units, if not through the Fanda, a representative of PT Kana Group of Procurement Services Unit: a trusted person who managed the e-catalog, was carried out in a bidding Surya Lestari, one of ten companies Pokja ULP 132 of North Sulawesi company’s account in the Electronic process, especially with special participating in the tender. The Province, General Bureau of the Procurement Service (LPSE). “Probably specifications,” she said. company referred to is PT Hasjrat Regional Provincial Secretariat of he registered, but did not continue Abadi, Toyota’s main distributor in Fiscal Year 2016. the process, because we did not sign Although many companies were eastern Indonesia. the documents of the tender process,” registered, she said, only a few were The bidding process was followed by she said. interested in providing the offer Fanda added that PT Hasjrat indeed 10 participants. They were PT Hasjrat documents and completing the often wins tenders of vehicles Abadi, CV Multi Tekhnik, CV Nomat The Head of Procurement of Goods required files. “Although there was in the North Sulawesi Provincial Jaya, CV Trigil, PT Isuzu Mobilindo and Services Unit of North Sulawesi only one offer from one provider, Government. PT Hasjrat, he said, Plaza, CV Kana Surya Lestari, CV Bumi Provincial Government, Conny according to the rules of Presidential always win because it can always Inti Nusantara, CV Race, CV Artika, Tidayoh, admitted that she cannot Regulation No. 4 of 2015, the process meet the specifications requested by and CV Wisanggeni. Other than PT explain the procurement process for can continue. The tender process is the tender committee. “So we chose Hasjrat, the nine companies did not the three minibus units. She reasoned legitimate even if there is only one to step down and did not submit an submit offers and several withdrew that she only held the position since offer,” said Tindayoh. offer. It was certain our company from the tender process. January 2017, after the bidding would not win,” said Fanda. There is another irregularity. The Fanda and other participants could owner of CV Bumi Inti Nusantara, not do much. The tender was Vonny Watung-Lasut, admitted that considered to be not in violation of her company did not participate in Presidential Regulation No. 4 of 2015. the tender. She was searching for They could not accuse that there was information about her company’s a monopoly behind the tender. “The involvement. “It is possible that CV presidential regulation allows it,” Bumi Inti Nusantara was registered by Fanda said dejectedly. a ‘rogue’ employee. Unfortunately the employee is now no longer working in The project worth Rp 2,030,600,000 our company. We do not know where was contained in the procurement he is now, and lost his contact,” Vonny document numbered 01/POKJA said. ULP 132-RO. UMUM/X/2016, Top 10 Most Risky Procurement in dated 25 October 2016. It contains North Sulawesi Province in 2015 44 45 The Presidential Regulation referred conditioner, new combination meter, one unit with standard specifications. Hiace Commuter Executive costing to by Tindayoh is regarded to open three point seatbelts. Also vibrating However, in the realization of the Rp 760 million per unit. The total cost the possibility for a monopoly. Article massage facilities in every passenger project, the Bureau purchased one was Rp 2,029,000,000. “One car is 109 paragraph (7) mentions “If the seat, first row passenger seats can Toyota Hiace Commuter and 2 Toyota parked behind the governor’s office, incoming number of offers is less be rotated to face backwards. In the Hiace Commuter Executive units with one at the airport and another at the than three participants, the selection second row passenger seats, the special modifications. governor’s residence. These three of the provider is continued through armrests should function as tables. minibuses are used to pick up guests,” technical and price negotiations.” This While the last row seat should be According to the former Head of he said. condition allegedly occurred in the foldable to expand the luggage. Public Bureau of North Sulawesi, tender for the minibuses. There are also automatic cylinder Jimmy Ringkuangan, there were 3 Differences between the Realization doors, reading lights in every seat, minibuses purchased. Those were and the Regional Budget Specifications lead to a single brand mini TV and refrigerator, and 220-volt one unit of Toyota Hiace Commuter From the beginning, there was a The nine companies withdrew electrical outlet. Executive costing Rp 509 million, and striking difference between the because they thought the two units of specially modified Toyota Amended 2016 Regional Budget specifications led to a single In addition, the specification also and the realization of the minibus company’s product. It seems like mentioned that the minibus must be project. The Amendment of the a conspiracy. With the requested equipped with a separate audio video specifications, the required car was system between the driver’s cabin and definitely a Toyota Hiace Commuter. passenger’s cabin. The audio video Other bidders did not have cars system in the driver cabin is equipped that could fulfill the specifications with a GPS system and a rear camera requested by the bidding committee. when reversing the car. Audio video for the passenger cabin is integrated The specifications mentioned an with the karaoke system containing executive minibus, similar to a Toyota more than 10 thousand licensed Hiace Commuter minibus. In fact, in songs. the detailed Amendment of the Direct Expenditure Budget of the General All the specifications requested by Bureau in the Amended 2016 Budget, the General Bureau were almost ‘Hiace Commuter’ was explicitly certainly filled by PT Hasjrat Abadi. In written. the Standard Electronic Procurement Document (SDPSE), the procurement The specifications of the minibus are: of the 14-passenger minibus consisted leather sofa seats for 9 passengers, of 2 types of specifications. It climate control, real ceiling air consisted of two executive units and Package Provision of Minibus Commuter Government of North Sulawesi Province 46 47 Direct Expenditure Budget of the Sulawesi Province to get the necessary General Bureau in the Amended approval. The proposal was also 2016 Budget is referred to as capital submitted to the Provincial Finance expenditure in the form of passenger Board as well as to establish the motor vehicles (executive bus with budget shift according to the available 30 seats) and Hiace Commuter portion. “However, the budget can minibus (with less than 14 seats). only be shifted if the new utilization is In fact, the General Bureau opens a in the same program. We have met all tender for the purchase of one Toyota applicable procedures in this project,” Hiace Commuter Executive, and said Ringkuangan. two specially modified Toyota Hiace Commuter Executive units. In relation to this budget shift, member of Commission II of North Procurement Package Ever Win Many questions came up. Is this Sulawesi Provincial DPRD Billy by PT Hasjrat Abadi difference acceptable? Former Lombok said that Permendagri No. Head of the General Bureau Jimmy 13 of 2006 Article 154 paragraph Ringkuangan, who now serves as (1), last amended by Permendagri between activities and between longer needs to be discussed in Head of Bureau of Infrastructure and Number 21 of 2011, gives room types of expenditure, and as meant the DPRD, the action is legitimate. Goods and Services Procurement of for the shift. Changes in the APBD in Article 160 paragraph (1) which “However, the General Bureau as the North Sulawesi Province, said that it may be made in the event of: justifies the shift between purchased spearhead for the infrastructure of was normal. He explained that the (a) developments that are not in objects and types of expenditure and the government leadership must be budgeting requirements could be accordance with KUA assumptions, between detailed types of purchased mature in planning. In the future, the shifted according to the needs. The (b) circumstances forcing budget objects. General Bureau needs to be more mechanism is to propose a shift with shifts between organizational units, alert, improve its planning and takes due regard to needs. between activities and between types Furthermore, Article 160 also grants into account the needs of protocol of expenditures, (c) circumstances and limits the authority to make and other operational needs,” said the “We need vehicles to carry guests causing excess budget from the shifts. Article 160 paragraph (2), gives Democratic Faction member. at the state official level and foreign previous year having to be used in the the space and limits the authority for guests. This resulted in the budget current year, (d) emergencies and (e) shifting budget between the detailed Motive of the Tender Winner shift. From 2 units of bus, into 3 units exceptional circumstances. types of purchased objects, to be The practice of monopoly is suspected of Hiace Commuter (2 executive made on the approval of the PPKAD to have been longstanding in every units with special modification and 1 The budget shift is allowed as (regional finance manager). tender of North Sulawesi Provincial executive unit),” said Ringkuangan. intended in Article 154 paragraph Government vehicle. Such fraud is The proposal for the shift was (1) letter b, namely budget shifts So, Billy said, if it is in accordance allegedly still happening to date, submitted to the Secretary of North between organizational units, with the rules and apparently no because the position of PT Hasjrat 48 49 Abadi remains unbeatable as the the Provincial Government of North Abadi continuously wins its tenders. has been risk analyzed based on winner of the tenders. PT Hasjrat Sulawesi in the 2016 budget year They reasoned that PT Hasjrat’s assessment indicators. ‘ “Because together with the North Sulawesi was initially handled by PT Hasjrat’s products are always in accordance it is a potential risk, the results Provincial Government are like Airmadidi branch. At that time Ferry with the required specifications. The found in Opentender have not been inseparable partners. Taroreh was the Toyota Head Outlet government mentioned that it has named as a corruption case. But in North Minahasa. The company, given opportunity to local providers, with Opentender, law enforcers, Aware that they are in the spotlight, he said, put Fransine as a sales but the after sales service was not as internal supervisors and the public the management of PT Hasjrat claims counter in North Sulawesi provincial good as expected. “Other providers can determine the most prioritized to have improved the project tender government. have not opened up to adapt to the risky procurement for further mechanisms since seven years ago. government’s tender process,” said investigation,” Agus said. They mention that they refrain from Fransine, he said, has always taken Head of Procurement of Goods and providing additional gratuities in the care of official vehicle procurement Services of North Sulawesi Provincial Finding out more about the tenders. They learn from experience, projects. But Fransine has resigned, Government, Conny Tidayoh. mishandling of the tenders as after having been repeatedly following her husband who works identified by Opentender, said Agus, summoned by the prosecutor’s office in Palu. Her position in the project Opentender Database must be done through investigation. related to alleged corruption of was later replaced by Ferjie. “I do The potential for fraudulent tender For example, by searching and government vehicle tender process. not really know what happened of these three minibuses has been tracking procurement contract data next because before the realization recognized from the beginning by and the track record of companies PT Hasjrat Abadi is the largest Toyota of the project in September 2016, I opentender.net. This site is managed participating and winning in the dealer and distributor in North have moved to the Toyota branch in and developed by ICW. This site often tenders. This includes investigation Sulawesi. One of its marketing officers, Tendean,” said Ferry. detects various irregularities in the to find out whether the project is Christian Ferry Taroreh, acknowledged electronic procurement of goods and fictitious or not,” he said. *** that local government service vehicles Ferjie said that she did not understand services (e-procurement) process. procurement projects are part of the the details of the tender information, “Procurement data are now all open, sales target of PT Hasjrat Abadi. such as the price offered by PT accessible via LPSE. ICW makes this In order to achieve this objective, Hasjrat. She also did not remember method online by linking national PT Hasjrat Abadi puts the best the exact amount of money paid procurement data in LKPP on an sales counter officers in every by the North Sulawesi Provincial ICW-made Opentender system, so government unit. The goal is to Government for the procurement that the public can access for free establish good relations and monitor of the three minibuses. “The price through opentender.net,” ICW Deputy the procurement plans for official was around Rp 700 million. I do not Coordinator Agus Sunaryanto stated. vehicles. remember and all the files I have The data available at opentender. submitted to my bosses,”’ said Ferjie net, he said, have been processed. The Hiace Commuter procurement The North Sulawesi Provincial The public can directly utilize them project in the General Bureau of Government is aware that PT Hasjrat because every existing procurement 50 51 The Road to Victory Projects won by • The specification of the minibus procurement at the North Sulawesi Province General Bureau leads to one brand, Toyota Hiace PT Hasjrat Abadi Commuter minibus • The other 9 bidders retreated and did not submit the bidding documents as they certainly could not meet the tendered car specifications. • The Standard Document of Electronic Procurement (SDPSE) for the procurement of the minibus referred to minibuses with a maximum number of seats for 14 persons with 2 types of specifications i.e. 2 Procurement of cars for department heads – Executive units and 1 Standard unit. However, in the realization of Gorontalo Province – November 2012 the project, the General Bureau purchased 1 Toyota Hiace Commuter Executive unit and 2 specially modified Toyota Hiace Commuter Executive units. Procurement of sedans – Tomohon City – September 2013 Luxurious to the door The facilities present in the Toyota Hiace Commuter of the North Procurement of motorbikes – Bolaang Sulawesi Provincial Government are as follows: Mongondow Regency – October 2013

Electronic Television Procurement of car for DPRD head – North massager in each Sulawesi Province – June 2016 seat Procurement of VIP service cars – Gorontalo Karaoke with hi-fi Refrigerator Province – August 2016 speaker plus 10 thousand licensed Procurement of police cars – North songs Halmahera LPSE – October 2016 Automatic door Procurement of sewage truck – North Climate control in Halmahera Regency – October 2016 each cabin Procurement of garbage dump truck – North Sophisticated Reading lights on suspension Halmahera Regency – October 2016 every seat Procurement of minibus – North Sulawesi Province – October 2016 Easily adjustable seats Procurement of jeep for Deputy Governor – North Sulawesi Province – March 2017

52 53 The company was then successful Toyota and Yamaha brand products. as an importer of plastic, industrial They also have PT Hasjrat Multifinance glass, and agricultural implements and (HMF), which deals with the financing products. Over the next two decades, of PT Hasjrat products. HMF also PT Hasjrat expanded its business to serves advising services up to the meet new opportunities and lines specific analysis of the financing of in the market and shaped its core each product, as well as competitive business image. The products supplied packages to meet customer needs in during the early years were cement, purchasing vehicles efficiently and

Showroom Toyota Owned by wooden doors, electronic appliances, easily. “HMF started operations in PT. Hasjrat Abadi and four-wheeled vehicles. 1995, and opened offices in almost all of our sales outlets,” Novi said. North Sulawesi PT. Hasjrat Abadi is a private In 1965, PT Hasjrat Abadi became company in Manado, North Sulawesi, the exclusive distributor of Yamaha Judging from its activities, the office Starting from working in general trading. Formerly it motorcycles in Manado. Their of PT Hasjrat Abadi in Manado is Construction was called CV Hasjrat Abadi, founded market was extended to Maluku and the largest branch. That is why the on 31 July 1952 in Jakarta, under Papua. In 1979, cooperation with Manado branch is the parent of Materials Notary Sie Kwan Djien Deed No. 12 Toyota began. In the same year, PT almost all branch offices in Eastern of 1952. Initially, the company traded Hasjrat established a sales service Indonesia. PT Hasjrat Abadi also has Almost 90 percent of the official in construction materials, such as partner, CV Combos in Manado. The several subsidiaries, among others PT vehicles of the North Sulawesi cement, iron, plywood etc. establishment of this company aimed Perkonsuma engaged in construction, Provincial Government are to complete the sales facility. Now, CV Combos engaged in car repairs, PT. Toyotas supplied by PT Hasjrat As it grew rapidly, CV Hasjrat Abadi with a staff of over 2,200, PT Hasjrat Samudera Purnablie Abadi engaged Abadi. This company wins various transformed into a limited liability Abadi focuses its business on vehicle in services, CV. Yosparine, CV Harpa, tenders in Eastern Indonesia due company (PT), based on Notarial sales, service and financing. CV Autonusa, CV Hasjrat Multifinance to their ownership of 273 Toyota Deed No. 124 of 1956 at Jalan and PT Mauru Permata Abadi. outlets. Yet, car sales are not part Sisingamangaraja No. 09 Calaca of their initial business. The Head of General Section of Manado, with Decree of the Minister PT Hasjrat Abadi, Manado Branch, Tender for Official Vehicles of Justice of the Republic of Indonesia Novi Koba, said that the company Tender of government official vehicles dated 2 November 1981 No 5/43/13. is currently providing innovative is one of the sales targets of PT Two founders were recorded, namely products such as Yamaha outboard Hasjrat, especially with the Toyota Albert Hendrik Palar on behalf of motors, distribution of Dunlock tires brand. In order to achieve this target, Rakhel David and Willy Lontoh. and Yanmar hand tractors, Mitico the management of PT Hasjrat Abadi zinc and Alduron zinc. These products continues to make breakthroughs as accompany their main sales, namely the exclusive distributor of Toyota 54 55 and Yamaha, in eleven provinces in tender for the official car of the official car had been budgeted and not only Toyotas, but also Suzukis, Central and Eastern Indonesia region, Chairman of North Sulawesi DPRD all the processes were handed over Daihatsus and others. “Yet the including North Sulawesi Province. and procurement of 3 units of Hiace to the relevant agencies. “In my governor himself used a Toyota, and Excellent service through post-sale commuter minibuses. In 2017, they experience, Toyota is a middle class so did the later governors,” he said. care, vehicle inspection, tune ups, and managed to win the tender for car, though actually as expensive as a *** customer maintenance are the main the car of the Deputy Governor of premium class car. Unfortunately, this focus of their business. Mechanics are North Sulawesi. In tenders of official other brand is not used as much by trained in accordance with Toyota and vehicles in East Indonesia, PT Hasjrat officials,” said Ai. Yamaha standards, with specialized Abadi is also unbeatable, as in North computerized workshops equipped Halmahera, Gorontalo, Tobelo, Papua He stated that procurement projects to serve consumers. They also always and other provinces. of official cars do not only focus on use original Toyota and Yamaha parts, the comfort aspect of the vehicle. and ensure availability and timely Champions of Aftersales Service Each tender should also note the delivery of spare parts. The chairman of the North Sulawesi readiness of the post-sale facility. branch of the Indonesian Offroad Each sole agent (ATPM) should have “PT Hasjrat Abadi’s products follow Federation (IOF), Harley Alfredo a qualified infrastructure in North Toyota and Yamaha standards, Benfica Mangindaan (‘Ai’), recounted Sulawesi. Related to this, Ai thinks enabling them to respond to customer his experience related to official Toyota is the best. needs quickly and accurately. Our vehicles while serving as Deputy integrated sales and service facilities Mayor of Manado in the 2010-2015 “In addition, the uniformity of choice are modern, with access to high- period. “ I would have preferred a from all regions (regencies and cities) tech workshops,” said Christian Ferry Rubicon as my official vehicle, but that also affect the tender committee. How Taroreh, marketing staff of Toyota was not possible as the Manado City could another brand win in a region Tendean Branch Showroom. Government has prepared a Toyota. when other regions choose Toyotas? Their reasoning was that Toyota met There is the opinion that Toyota is the They also claim to be the best. all the standards of procurement of best at this time. This later will raise “This is why almost all tenders for official vehicle projects,” said Ai. questions with the BPK,” said the man government service vehicles are won who would prefer a jeep. by PT Hasjrat Abadi. In our opinion, For the man who also hold the for customers, the process of choosing position as the chairman of the The love affair with Toyota has existed and buying should be fun, by our Indonesian Transportation Society for a long time. When the position of offering fast service, tailored financing (MTI) in North Sulawesi, the level of Governor of North Sulawesi was held options, competitive pricing as per comfort and satisfaction with Toyota by E.E. Mangindaan in 1995-2000, customer requirements,” Ferry added. was actually mediocre, however the official cars in North Sulawesi In 2016, PT Hasjrat Abadi won the there was no other choice. The Provincial Government included 56 57 Profile of the Fellows

Seplin Bachrir Jeane Bernetje Rondonuwu Place/date of birth: Kolaka, 5 September 1989 Place/date of birth: Lembean, 05 August 1974 Email: [email protected] Email: [email protected] Work Experience: Work Experience: 1. Reporter of Rakyat Sultra (Kendari Ekspres) Daily, Kendari 1. Editor in chief of sulutdaily.com (2012-present) (2013-present) 2. Journalist of IdManado.com (2011-2012) 2. Journalist of Media Sultra Daily, Kendari (2012) 3. Journalist of Manado Post Daily (1998-2000) 4. Head of Representation of Komentar Daily (2003-2005) 5. Editor and Journalist of Komentar Daily (2001-2005)

Muhammad Yunus Aqilah Nurul Khaerani Latif Place/date of birth: Oesapa, 20 May 1984 Place/date of birth: Jakarta, 2 April 1994 Email: [email protected] Email: [email protected] Work Experience: Work Experience: 1. Editor of Makassar Terkini (2016-present) 1. Journalist of Fajar Daily, 2015-present 2. Contributor of Tempo (2011-2016) 3. News program producer of CELEBESTV (2011) 4. Video journalist (VJ) of Metro TV (2008-2011) 5. Production staff of Discover Indonesia program of Metro TV (February-April 2011) 6. R&D for Research and Polling of Identitas Campus Magazine of Hasanuddin University (2007-2008) 7. Editor of Identitas Campus Magazine of Hasanuddin University (2006-2007) 8. Reporter of of Identitas Campus Magazine of Hasanuddin University (2004-2006)

58 59 60 Through the inves�ga�on of the journalists par�cipa�ng in the fellowship, the e-tender ‘game’ can be discovered in full view. Their findings also confirm the validity of the opentender.net instrument made by ICW to help the people monitor the work of the government, especially in the public procurement sector. Besides journalists, CSOs, students, researchers and the public in general can benefit from the opentender.net tool for monitoring, due to the ease of Investigating which the tool is used.

Adnan Topan Husodo Public ICW Coordinator Procurement using OpenTender