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| East Kalimantan completes administrative return of Rp8.5 billion official car, ensuring transparency and responding to President Prabowo Subianto’s budget efficiency concerns. |
Samarinda – The Government of East Kalimantan has confirmed that the administrative process for returning the governor’s official car valued at Rp8.5 billion has been fully completed. This move comes amid renewed scrutiny of regional budget efficiency by President Prabowo Subianto.
“From both calculation and administrative perspectives, the procurement process is considered complete since the car was never used in the field,” said Muhammad Faisal, Head of East Kalimantan’s Communication and Information Office (Diskominfo), in Samarinda on Friday.
Faisal explained that from the total purchase price of Rp8.5 billion, the fleet provider actually received a net payment of only Rp7.5 billion. The nearly Rp1 billion difference was purely due to state tax deductions, including Value Added Tax (VAT) and Income Tax (PPh), which East Kalimantan Province directly transferred to the central government.
Since the official purchase was canceled, East Kalimantan is now coordinating with the Directorate General of Taxes to process the tax refund, which typically takes two to three months according to procedures.
“The Rp8.5 billion price tag was fully calculated, including taxes, vehicle registration fees, inter-island shipping costs, insurance, and the supplier’s profit margin,” Faisal added.
The official vehicle procurement was originally conducted through direct appointment, as there was only one distributor in the Jakarta area.
Faisal emphasized, “Through completing the administrative process and transparently retrieving the tax funds, East Kalimantan demonstrates its commitment to supporting budget efficiency in line with the central government’s directives.”
This explanation responds to renewed attention on the luxury car purchase after President Prabowo Subianto criticized the Rp8 billion allocation for official vehicles, arguing it overlooked village infrastructure priorities. The President even compared it to his locally-made armored Maung car, which costs less than Rp1 billion.
FAQ
Q: Has the Rp8.5 billion official car ever been used?
A: No, the car has never been used in the field.
Q: How much did the supplier actually receive?
A: The supplier received Rp7.5 billion after tax deductions.
Q: How long will the tax refund process take?
A: The tax refund process is estimated to take 2–3 months.
Q: How was the official car procurement conducted?
A: The car was procured through direct appointment, as there was only one distributor in Jakarta.
