ASIATODAY.ID, JAKARTA — Indonesia’s Audit Board (BPK) has uncovered the misuse of funds from a Japan International Cooperation Agency (JICA) loan in the construction of the Patimban Port Project in Subang, West Java. The irregularities, amounting to around USD 476,000, add to a series of findings that caused state losses worth millions of dollars.
The findings were detailed in the BPK’s Second Semester Audit Summary (IHPS II) for 2024, which reviewed government spending on the Patimban Port development between 2023 and mid-2024.
JICA Loan Funds Diverted for Office Use
According to BPK, loan funds provided by JICA—intended exclusively for civil works, consultancy services, and project-related costs—were instead used to purchase vehicles and electronic equipment worth USD 476,000 for the operational needs of the Patimban Class II Port Authority (KSOP).
This spending violated the JICA Loan Agreement, as the funds were not utilized for direct construction activities.
“As a result of this misuse, the state suffered financial waste equivalent to USD 476,000,” the BPK report stated, as quoted from the agency’s official website on Monday, Nov 10, 2025.
BPK recommended that the Minister of Transportation impose sanctions on the Budget User Authority (KPA) of KSOP Patimban and ensure all future operational expenses comply with the approved loan terms.
Overpayments and Technical Non-Compliance
Beyond the JICA loan misuse, BPK also identified technical discrepancies and overpayments in construction packages funded through State Sharia Securities (SBSN).
These include issues with AC-Base pavement quality and volume calculations in the port’s backup area, leading to overpayments of about USD 140,000.
BPK urged the Minister of Transportation to direct project officials (PPK) to recover these losses and ordered the Inspectorate General to verify the reimbursement process.
Consultancy Contract Waste
The audit also found another USD 183,000 in unnecessary spending from the addition of supporting staff for employer within the design and supervision consultancy contract.
These roles were filled by existing KSOP Patimban personnel, who were already part of the project’s government implementation team and should not have been paid under the consultancy budget.
Total Financial Impact
In total, BPK recorded nine findings and thirteen issues in the audit of Patimban Port’s spending.
The issues include:
Weak internal control systems,
Non-compliance with laws and regulations worth approximately USD 280,000, and
Inefficiencies and effectiveness problems totaling USD 660,000.
The Patimban Port Project is one of Indonesia’s National Strategic Projects (PSN), established under Presidential Regulation No. 47/2016.
Managed by the Directorate General of Sea Transportation under the Ministry of Transportation, the project is financed through a combination of JICA loans, SBSN bonds, the state budget (APBN), and non-tax revenues (PNBP). (AT Network)
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