The Head of the Bali High Prosecutor's Office, Ketut Sumedana, said that the Head of the Buleleng I Made Kuta Investment and One Stop Integrated Service (DPMPTSP) allegedly withdrew tens of millions per permit for the construction of subsidized houses to investors.

Sumedanadi Denpasar, Monday, said I Made Kuta, who has now been named a suspect, allegedly asked for money from developers who applied for a subsidized house construction permit, namely that each housing unit was charged an additional fee of Rp. 10-20 million by the suspect. If calculated from the total 419 houses that have been built, the extortion value reaches billions of rupiah.

"Developers apply for permits, one permit can be up to 419 houses. Each house is asked for Rp10-20 million. This is clearly detrimental to the community, because the subsidy funds that should have been taken for them are for personal gain," said Ketut Sumedana, Monday, March 24.

He explained that the price of subsidized houses, which should have been around Rp. 200 million, had been subsidized to Rp. 140 million by the government, with 50 percent of the funds being given through banks, but the extorted money from developers finally reduced subsidies that should have been received by low-income people.

In addition to the case of licensing extortion, Kajati Bali also revealed irregularities in the distribution of subsidized houses. A number of houses that should have been intended for low-income people (under Rp. 7 million per month), were actually purchased by people who did not meet the requirements.

The results of the investigation in the field found that one person could own up to three houses. Some even buy subsidized houses but not residents who live there, even though this subsidized house should be given to people who really need it," he said.

The former Head of the Indonesian Attorney General's Office said investigators also found that nearly 300 ID cards belonging to low-income people were rented by developers to take care of the administration of subsidized houses, but the houses were actually occupied by unauthorized parties.

If they can buy more than one house and even repair their houses for the better, it means they are not a group of people who cannot afford it. That means they don't deserve subsidies," he said.

Regarding this finding, the Bali Attorney General's Office Special Crime investigators have taken firm steps by confiscating unoccupied houses. However, for houses that have been occupied by the community, his party is still considering further policies while still prioritizing the humanitarian aspect.

This extortion case, said Sumedana, has been going on for quite a long time, since the construction of subsidized houses began in 2019. Work was stopped due to the COVID-19 pandemic, then resumed in 2022-2023. Since then, extortion has been carried out on more than one developer.


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