Rp8.5 Billion Government Car Returned by East Kalimantan Provincial Government, Tax of Nearly Rp1 Billion Still Being Processed

SAMARINDA - The East Kalimantan Provincial Government has ensured that it has completed all the processes for the administrative return of the governor's official car worth Rp8.5 billion, amid the spotlight on the issue of regional budget efficiency by the President of the Republic of Indonesia Prabowo Subianto.

Head of the East Kalimantan Communication and Information Service, Muhammad Faisal, said that in terms of numbers and administrative procurement processes had been considered complete because the vehicle had never been used.

"In terms of numbers and administrative procedures, the procurement process is considered complete, because the car has never been used in the field," said Faisal in Samarinda, Antara, Saturday, March 21.

He explained that from the total purchase value of Rp. 8.5 billion, the provider only received a net payment of Rp. 7.5 billion. The difference of almost Rp. 1 billion is a tax deduction in the form of Value Added Tax (PPN) and Income Tax (PPh) which has been deposited into the state treasury.

Along with the cancellation of the purchase, the East Kalimantan Provincial Government is now coordinating with the Directorate General of Taxes to process the return of tax funds, which is estimated to take two to three months.

Faisal added that the value of Rp8.5 billion includes various components, such as taxes, reverse name fees, inter-island shipping costs, insurance, and provider profit margins.

He also emphasized that the procurement process was carried out through a legitimate direct appointment mechanism, considering that there was only one distributor in the Jakarta region.

"Through the completion of administrative procedures and efforts to withdraw tax funds in a transparent manner, the East Kalimantan Provincial Government has proven its commitment to supporting budget efficiency in accordance with the firm direction of the central government," said Faisal.

The explanation was given following the re-emergence of the issue of the purchase of luxury cars, after President Prabowo highlighted the budget for official vehicles which was considered not in line with development priorities, especially village infrastructure.

In his statement in Hambalang, Prabowo even compared the budget with the domestically produced anti-bullet service vehicle of the Maung type that he used, which was said to have a price of less than Rp1 billion.