Two senior officials in President Joko Widodo's cabinet are set to be reported to the Corruption Eradication Commission (KPK) over allegations of conflicts of interest in the nation's procurement of PCR test kits.
The gold standard COVID-19 diagnostic tool had been financially out of reach for many Indonesians throughout much of the pandemic. Amid plans for a more widespread adoption of the test in place of cheaper but less reliable alternatives, the government in recent weeks reduced the price ceiling for the PCR test on several occasions, with the latest reduction putting it at IDR275K (US$19).
This raised the question on whether it was necessary for the test to cost at least five times that amount throughout much of the pandemic. A recent report by local news magazine Tempo pointed at possible government price fixing, alleging business links between ministers and firms that manage PCR test labs.
Today, the Just and Prosperous People's Party (Prima), who is relatively new in the political scene, plans to report two ministers, namely Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan and State Owned Enterprises (SOE) Minister Erick Thohir, to the KPK for their alleged involvement in the scheme.
"Before this gets out of hand, it's better that we report this to KPK because they have the authority to investigate this," Prima Deputy Chairman Alif Kamal said.
The allegations center around a COVID-19 test service provider PT Genomik Solidaritas Indonesia (PT GSI). Two firms affiliated with Luhut reportedly own shares in PT GSI, while another firm headed by Erick's brother, Garibaldi Thohir, also owns a stake in the company.
Luhut has admitted to the business ties but stressed that he has never received any personal gain from PT GSI, which he said he helped establish in the spirit of social enterprise to help in Indonesia's struggle against COVID-19. An SOE Ministry spokesman also did not deny Erick's links to PT GSI, but said his involvement was so minuscule that there was no way he had any influence on the price of PCR tests.
Source: https://coconuts.co/jakarta/news/indonesian-ministers-under-scrutiny-over-alleged-pcr-test-business