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Indonesia's KPK probes regional grant fraud and high‑cost politics
Indonesia's Corruption Eradication Commission (KPK) announced on 10 October 2025 that 21 people were named as suspects in a large‑scale grant‑fraud case tied to East Java’s Pokmas (regional grant) program. The investigation builds on a 2022 sting operation that caught former Deputy Chair of the East Java Regional People’s Representative Council (DPRD) and now includes former DPRD chair Kusnadi, former deputy chairs, and several field coordinators. Prosecutors allege the suspects diverted roughly Rp 398.7 billion in grant funds between 2019 and 2022, with fees of 15‑20 % taken by the senior officials and the money distributed through a network that prepared proposals, budgets and accountability reports.
The scandal is presented as a symptom of Indonesia’s “high‑cost politics”, where the expense of billboards, banners and other campaign media creates incentives for corruption. An opinion piece argues that KPK should push for the state to finance campaign materials or shift campaigning to digital platforms, which could reduce the need for costly physical advertising and lower the drive for illicit financing.
Entities
Corruption Eradication Commission (KPK) · East Java · Kusnadi · Pokmas (regional grant) program