Massive Corruption Uncovered in Indonesia’s Covid-19 PPE Procurement

Jakarta, Xweb.biz.id – A large-scale corruption scandal has emerged from the Indonesian government’s emergency procurement of Personal Protective Equipment (PPE) during the Covid-19 pandemic in 2020. The scandal, involving key ministries and private sector entities, has caused state losses amounting to hundreds of billions of rupiah.

At the center of the case are irregularities in the procurement process led by the Ministry of Health (Kemenkes) and the National Disaster Management Agency (BNPB), under the leadership of then BNPB Head Lieutenant General Doni Monardo. The process, intended to expedite PPE availability during the health crisis, turned into a fertile ground for corrupt practices.

Questionable Pricing and No Documentation

The Ministry of Health initially purchased PPE from PT Permana Putra Mandiri (PPM) at a price of IDR 379,500 per set. However, after the inclusion of PT Energi Kita Indonesia (EKI) as a middleman, the price soared to nearly IDR 1 million per set.

Investigations revealed that PT PPM and PT EKI entered into a pricing agreement, granting PT PPM an 18.5% profit margin, without adhering to procurement regulations. No official purchase orders or supporting payment documents were submitted, raising major red flags.

Even more concerning, PT EKI lacked a Medical Device Distributor Permit (IPAK), and PT PPM failed to submit proof of fair pricing—a violation that strongly indicates intent to inflate costs and conceal misconduct.

Non-Transparent Deals and Weak Oversight

BNPB’s Budget User Authority (KPA), Harmensyah, negotiated directly with Satrio Wibowo, Director of PT EKI, outside official procedures. This lack of transparency, combined with the urgency of the pandemic response, allowed a series of unchecked transactions.

“The absence of standard procurement procedures and the use of unauthorized suppliers led to severe vulnerabilities and opened the door to corruption,” said a legal expert following the case.

State Losses and Key Figures Indicted

An audit by the Financial and Development Supervisory Agency (BPKP) estimated state losses at Rp319 billion, while other estimates reached Rp625 billion, indicating the scale and complexity of the fraud.

Three key individuals have been charged:

• Budi Sylvana, former Head of the Ministry of Health’s Health Crisis Center,

• Satrio Wibowo, Director of PT EKI,

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• Ahmad Taufik, Director of PT PPM.

On May 16, 2025, KPK prosecutors officially read out the indictment. Satrio Wibowo is accused of pocketing Rp59.9 billion, while Ahmad Taufik allegedly received Rp224.1 billion. The use of fake checks in the transaction process has also been discovered, further complicating the case.

A Wake-Up Call

The PPE corruption case underscores critical flaws in Indonesia’s emergency procurement system. It highlights the urgent need for increased transparency, proper due diligence, and stricter enforcement of procurement laws, especially during national crises.

Experts say the case should serve as a turning point for the government to reform procurement protocols and ensure that emergency funds are protected from exploitation.

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