Pekalongan Regent Fadia Arafiq Family Allegedly Profited Rp 19B from Outsourcing Projects

Jakarta, Indonesia – A widening corruption investigation in Pekalongan Regency, Central Java, has revealed that the family of Bupati (Regent) Fadia Arafiq allegedly profited by Rp 19 billion (approximately $1.2 million USD) from outsourcing contracts awarded by the local government between 2023 and 2026. The allegations, announced Wednesday by Indonesia’s Corruption Eradication Commission (KPK), center on PT Raja Nusantara Berjaya (RNB), a company founded by Arafiq, her husband, and her son, and its dominance in securing government projects.

The KPK alleges that while only Rp 22 billion of the Rp 46 billion in transactions with PT RNB was used to pay outsourcing employees, the remaining Rp 19 billion was distributed among members of Arafiq’s family, representing roughly 40% of the total funds. This revelation comes as Arafiq has been named a suspect in the corruption case, accused of intervening in the procurement process to favor her company. The case highlights concerns about conflicts of interest and the potential for abuse of power within local governance in Indonesia.

Family Ties and Company Formation

According to the KPK, the scheme began shortly after Fadia Arafiq assumed office in 2021. She, along with her husband, Mukhtaruddin Ashraff Abu – a member of the Indonesian House of Representatives – and their son, Muhammad Sabiq Ashraff, established PT RNB. The company quickly became a key vendor in procurement projects within the Pekalongan Regency government. Muhammad Sabiq Ashraff initially served as a commissioner and director of PT RNB, before being replaced by Rul Bayatun in 2024, described by the KPK as a close confidante of Arafiq.

The KPK’s investigation indicates that PT RNB’s success wasn’t simply due to competitive bidding. Deputi Penindakan dan Eksekusi (Deputy for Investigation and Execution) Asep Guntur Rahayu stated that Arafiq allegedly used her position to influence the awarding of contracts, ensuring PT RNB consistently won bids for outsourcing services across numerous government departments, hospitals, and even at the Kecamatan (sub-district) level. The company reportedly secured projects in 17 Perangkat Daerah (regional government units), 3 RSUD (regional public hospitals), and 1 Kecamatan.

Breakdown of Alleged Profits

The KPK has detailed how the alleged illicit funds were distributed among Arafiq and her family members. Fadia Arafiq herself is accused of receiving Rp 5.5 billion, while her husband, Mukhtaruddin Ashraff Abu, allegedly benefited by Rp 1.1 billion. Their son, Muhammad Sabiq Ashraff, reportedly received Rp 4.6 billion, and another individual identified as MHN received Rp 2.5 billion. Rul Bayatun, as director of PT RNB, allegedly received Rp 2.3 billion, and an additional Rp 3 billion was reportedly withdrawn in cash.

The Role of Outsourcing Contracts

The investigation focuses heavily on the outsourcing of services within the Pekalongan Regency government. The KPK alleges that PT RNB dominated this sector, winning a disproportionate number of contracts. This allowed the company to inflate costs and divert funds, ultimately benefiting Arafiq and her family. The scale of the alleged corruption raises questions about oversight mechanisms and the effectiveness of procurement regulations within the local government.

Detention and Ongoing Investigation

Fadia Arafiq is currently in KPK custody, having been detained for an initial 20-day period starting March 4, 2026. She is being held at the KPK’s detention center in Jakarta. The KPK has indicated that the investigation is ongoing and may lead to further arrests. Asep Guntur Rahayu confirmed that the agency is examining the potential involvement of other individuals who may have facilitated the alleged corruption scheme.

Arafiq is being charged under articles 12 letter i and 12 B of Law Number 31 of 1999 concerning the Eradication of Criminal Acts of Corruption, as amended by Law Number 20 of 2001, in conjunction with Article 127 paragraph (1) of Law Number 1 of 2023 concerning the Criminal Code. These charges carry significant penalties, including imprisonment and substantial fines.

The KPK’s investigation into the Pekalongan Regency outsourcing scandal underscores the challenges Indonesia faces in combating corruption at the local level. The case serves as a stark reminder of the importance of transparency, accountability, and robust oversight mechanisms in ensuring public funds are used for their intended purpose. The next scheduled action in the case is a hearing to determine the continuation of Arafiq’s detention, expected within the next 20 days. Further updates on the investigation will be released by the KPK as they become available.

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