Indonesia’s Minister of Public Works, Dody Hanggodo, revealed that recent leadership changes within the Directorate General of Water Resources and the Directorate General of Cipta Karya were prompted by findings of potential state financial losses uncovered by the Supreme Audit Agency (BPK). The revelations reach as the ministry faces scrutiny over project delays and financial irregularities.
Hanggodo stated he received two reports from the BPK detailing the alleged losses. The first, delivered in January 2025, indicated potential financial discrepancies totaling nearly 3 trillion Indonesian Rupiah.
“The BPK sent me two letters. One in January 2025 and another in August 2025. As I recall, the January 2025 letter cited financial losses to the state of almost 3 trillion Rupiah,” Hanggodo said in a statement Sunday, March 1, 2026.
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Following the initial report, Hanggodo directed the Secretary General and the Inspector General to investigate and resolve the issues by June 2025. However, a resolution was not reached within that timeframe.
“Then, a second letter arrived in August 2025. That report indicated the potential financial losses had been reduced to around 1 trillion Rupiah. Yes, it went from almost 3 trillion to almost 1 trillion,” he explained.
“We then formed an Ad-Hoc Committee and established teams within each work unit to expedite the recovery of state funds lost due to third parties. However, this also lacked further action from the Inspector General and Secretary General. That’s why I took over and formed new teams within each work unit to accelerate the recovery of state funds and avoid disrupting their daily operations,” he added.
Hanggodo also reactivated the ministry’s Audit Committee, stating it was a necessary step as not all personnel within the ministry could be considered entirely without conflict.
He noted that three individuals from the Attorney General’s Office assisted in forming these teams, which he described as “clean sticks.”
“The Attorney General provided three impartial individuals to assist me. So, it can’t be said that their resignations were sudden. There had been a process beforehand, and when I utilized these impartial individuals, they chose to resign. That’s roughly the situation,” he said.
Hanggodo affirmed that the audit process continues under his direct supervision. While acknowledging that not all auditors within the Inspectorate General are performing optimally, he emphasized the presumption of innocence. He also stated he has reported all actions to the President, both verbally and in writing.
“We continue to uphold the presumption of innocence, but since the President appoints and forms echelon one positions, I must obtain the President’s guidance and direction before making any decisions,” he stated.
(acd/acd)
