Indonesia’s anti-graft agency uncovers parallel corruption schemes in Central and East Java

Indonesia’s Corruption Eradication Commission has unveiled the results of two major sting operations targeting regional leaders in Java, exposing alleged corruption schemes that span village-level appointments, infrastructure projects, and corporate social responsibility (CSR) funds.

At a press conference held on 20 January 2026 at the KPK’s Merah Putih Building in Jakarta, the anti-corruption body confirmed the suspect status of the Regent of Pati, Sudewo, and the Mayor of Madiun, Maidi, following separate operasi tangkap tangan (OTT) operations in Central Java and East Java.

The twin cases, announced together, underscore what investigators describe as entrenched patterns of rent-seeking at the local government level, involving both grassroots administration and large-scale public spending.

Pati: alleged extortion in village appointments

In Pati Regency, Central Java, the KPK alleges that Sudewo orchestrated a systematic extortion scheme tied to the recruitment of village administrative officials.

Investigators say the scheme was designed to monetise a policy opening village-level recruitment scheduled for March 2026.

KPK spokesperson Budi Prasetyo said investigators secured billions of rupiah in cash linked to the alleged handling of these appointments.

Subsequent examination led the KPK to name Sudewo and three village heads as suspects: Abdul Suyono (Head of Karangrowo Village), Sumarjiono (Head of Arumanis Village), and Karjan (Head of Sukorukun Village).

According to Asep Guntur Rahayu, Acting Deputy for Enforcement and Execution at the KPK, the suspects are alleged to have violated provisions of Indonesia’s Anti-Corruption Law relating to extortion by public officials.

Investigators allege that Sudewo formed what they describe as a “Team of Eight”, composed largely of village heads who were also part of his political campaign structure.

Acting as sub-district coordinators, the group allegedly served as intermediaries to approach prospective village officials and demand payments in exchange for appointments.

Under the scheme, candidates were allegedly required to pay between Rp125 million and Rp150 million (approximately US$8,000–US$9,500) per position.

These sums were then allegedly inflated by intermediaries to between Rp165 million and Rp225 million (around US$10,500–US$14,300). Investigators also allege that candidates who refused to pay were threatened with exclusion from future recruitment rounds.

Funds were reportedly collected by village heads acting as designated collectors. Asep said that, as of 18 January 2026, investigators had recorded the collection of around Rp2.6 billion (approximately US$170,000), originating from eight village heads in Jaken District alone.

The money, according to the KPK, was gathered in bulk and in some cases stored in sacks, one of which was displayed during the press conference as evidence.

Sudewo has denied the allegations, insisting he never discussed or authorised any such payments. “I am speaking honestly. Whether people believe it or not is up to them,” he told reporters, rejecting claims that he coordinated with village heads or sub-district officials.

Additional charges: railway procurement case

Compounding his legal troubles, the KPK also named Sudewo as a suspect in a separate corruption case involving alleged bid rigging and project fees linked to railway procurement under the Directorate General of Railways (DJKA) at the Ministry of Transportation.

Asep said the DJKA case had been formally elevated to the investigation stage and would be combined procedurally with the village extortion case so that both could be tried together. The allegations relate to railway projects in the Central Java and Solo Balapan area.

Madiun: bribery and CSR-related extortion

In a parallel operation in East Java, the KPK arrested and named as suspects the Mayor of Madiun, Maidi, his close associate Rochim Ruhdiyanto, and the Head of the Madiun City Public Works and Spatial Planning Agency, Thariq Megah.

The KPK alleges that Maidi was involved in extortion and gratification schemes connected to infrastructure projects, permits, and CSR funds during his first term in office from 2019 to 2022. Investigators say the total alleged gratification received by Maidi amounted to Rp1.1 billion (approximately US$72,000).

One case cited by investigators involved a road maintenance project valued at Rp5.1 billion (around USD 330,000). The KPK alleges that Maidi, through Thariq, demanded a fee equivalent to six per cent of the project value. The contractor reportedly agreed to provide four per cent, or around Rp200 million (approximately US$13,000).

Beyond public works projects, investigators allege that Maidi demanded fees from private-sector actors seeking permits to operate hotels, minimarkets, and franchise businesses.

In one instance, Maidi is accused of demanding Rp600 million (around US$39,000) from a property developer, with the funds channelled through intermediaries and private companies.

The KPK also cited an alleged demand made in July 2025 for Rp350 million (approximately US$23,000) from an education foundation.

The payment was framed as a long-term “rental” fee for road access over a 14-year period, but was publicly presented as CSR funding for Madiun City.

Maidi declined to comment when leaving the KPK building after being named a suspect, remaining silent as he was escorted by investigators