Jakarta. Indonesia’s Corruption Eradication Commission, Komisi Pemberantasan Korupsi (KPK), is reviewing a Rp 27 billion ($1.55 million) procurement plan for student shoes under the government’s People’s School program following public scrutiny over a reported price of Rp 700,000 ($40) per pair.

KPK spokesperson Budi Prasetyo said the review is part of the agency’s corruption prevention efforts tied to priority programs under President Prabowo Subianto.

“As part of supporting the People’s School program, KPK, through its Monitoring Directorate, is currently conducting a study,” Budi said at the agency’s headquarters in South Jakarta late Monday.

The assessment aims to map potential corruption risks, particularly in public procurement, a sector long considered vulnerable. Budi outlined common irregularities, including misaligned planning, abuse of the e-purchasing system, manipulation of the owner's estimate pricing, and bid-rigging practices.

KPK data shows that between 2004 and 2025, 446 out of 1,782 corruption cases were linked to goods and services procurement, making it the second-largest category after bribery and gratuities, which accounted for 1,100 cases.

The agency has also stepped up oversight through instruments such as its Integrity Assessment Survey (SPI). The Social Affairs Ministry’s SPI score declined from 79.16 in 2024 to 75.79 in 2025, placing it in the “alert” category. While procurement management scores improved slightly, expert assessments remained relatively low.

The controversy centers on a shoe procurement plan under the Social Affairs Ministry, which oversees the People’s School program. Social Affairs Minister Saifullah Yusuf, also known as Gus Ipul, has clarified that the Rp 700,000 figure is an initial estimate and not a final price.

“Every budget starts with a plan and then goes through an open tender process. The final result is usually lower than the initial estimate,” he said during a visit to a People’s School construction site in Surabaya on Sunday.

He added that the final procurement price is likely to drop significantly after the tender process.

Separately, local footwear brand Stradenine denied involvement in the procurement after its products were linked to the controversy. Images circulating online showed one of its models allegedly priced at Rp 700,000, while the company said the actual retail price is Rp 179,900 per pair.

“The product shown in the reports is indeed ours, priced at Rp 179,900,” the company said in a statement posted on its official Instagram account on Tuesday.

Stradenine stressed it has neither participated in nor received any orders related to the government’s procurement. The Surabaya-based brand added that its products typically retail between Rp 100,000 and Rp 300,000 per pair.

The People’s School initiative, launched in October 2025, is a free boarding education program aimed at children from low-income and vulnerable families. It provides fully funded accommodation, meals, and school supplies, with beneficiaries selected from the government’s social welfare database.

Saifullah said the government targets 97 permanent school buildings across the country to begin operations by July 2026 to expand access to education.

Add as a preferred source on Google +