Fadia Arafiq case, KPK assessed progressive to apply conflict of interest article

Pekalongan Regent Fadia Arafiq (Pekalongan Regency Government photo)

JAKARTA - The steps taken by the Corruption Eradication Commission (KPK) to trap the Regent of Pekalongan Fadia Arafiq with Article 12 letter i of the Tipikor Law are considered progressive. The operation of the hand arrest is now not only targeting bribe and gratification perpetrators but also conflicts of interest.

"The application of Article 12 letter i in the event of being caught in Pekalongan shows that law enforcement by the KPK is no longer solely focused on the pattern of 'kickback' but also conflicts of interest in the procurement of goods and services," said former KPK investigator, Praswad Nugraha through a written statement quoted Friday, March 6.

"The use of this article should be appreciated as a progressive step because until now OTT has more often been associated with bribery or gratification construction which places the existence of the giver and the receiver," he continued.

Praswad said that conflicts of interest by state organizers were not necessarily the result of corruption. "However, in the context of procurement of goods and services by the government, the Tipikor Law explicitly criminalizes the actions of officials who participate directly or indirectly," he said.

Furthermore, he also mentioned Article 12 letter i of the Corruption Law specifically placing conflicts of interest as a formal delict. There is no need for state losses but there must be fulfillment of the element of involvement.

Thus, the silent operation that resulted in the establishment of Fadia as a suspect must be a serious alarm for state organizers.

"Both at the regional and national levels that involvement in the procurement process, even without visible cash flows, can have criminal implications," explained Praswad.

The implementation of Article 12 letter i of the Corruption Law, continued Praswad, should be a trigger for strengthening integrity and legal compliance in every procurement process.

"It's not about a new modus operandi, but this article confirms that the form of corruption is increasingly complex and often hides in relationships of apparent reasonable interests," he said.

"Therefore, strengthening integrity and legal compliance in every procurement process is a must."

As previously reported, the KPK named the Regent of Pekalongan Fadia Arafiq as a suspect for allegedly arranging PT Raja Nusantara Berjaya (PT RNB) to monopoli outsourcing service projects in 17 regional devices, 3 RSUD, and 1 sub-district in Pekalongan Regency. He was caught in a hand-in-hand operation (OTT) on Tuesday, March 3.

PT RNB itself is known to have been founded by Fadia's husband and son, whose leadership was then handed over to his trusted employees.

Regional devices are forced to win this "Parent Company" even though there are other vendors offering lower prices.

Throughout 2023 to 2026, there were transactions into PT RNB worth Rp. 46 billion sourced from contracts with regional devices in the Pekalongan Regency Government. Of that amount, Rp. 22 billion was used to pay the salaries of outsourcing employees.

Meanwhile, the rest or about 40 percent flowed into the pockets of Fadia, her husband and her children. Here are the details:

1. Fadia Arafiq as the Regent of Pekalongan enjoyed Rp5.5 billion; 2. Mukhtaruddin Ashraff Abu who is Fadia's husband enjoyed Rp1.1 billion.

Ashraff currently serves as a member of the Indonesian House of Representatives for the 2024-2029 period from the Golkar Party Faction which serves on Commission X. At PT RNB, he holds the position of commissioner.

3. Muhammad Sabiq Ashraff as the regent's son enjoyed Rp. 4.6 billion;

Sabiq is a member of the Pekalongan Regency DPRD from the Golkar Party Faction (Dapil V). He also served as the Director of PT RNB for the period 2022-2024.

4. Mehnaz NA as the regent's son enjoys Rp2.5 billion; 5. Rul Bayatun as the Director of PT RNB 2024 - now / Regent's Trust Person: Enjoying Rp2.3 billion; and 6. Other cash withdrawals of Rp3 billion.

For his actions, Fadia Arafiq was then detained for the next 20 days at the KPK Red and White Building Branch Detention Center. The extension of detention will be carried out as needed by investigators.

In this case, he is suspected of violating Article 12 letter i and Article 12 B of the Corruption Eradication Law in conjunction with Article 127 paragraph (1) of the Criminal Code regarding conflicts of interest and abuse of authority in the procurement of goods and services.