Indonesia’s Corruption Eradication Commission (KPK) has exposed a decade-long bribery scheme operating within the Ministry of Manpower. At the heart of the case lies the misuse of the Rencana Penggunaan Tenaga Kerja Asing (RPTKA) system – a mandatory prerequisite for companies seeking to hire foreign workers in Indonesia.

According to preliminary findings revealed on 5 June 2025, KPK estimates that around Rp53.7 billion (US$3 million) was extorted between 2012 and 2023 from agents facilitating foreign manpower plans. In plain terms, money changed hands for approvals that should have followed due process.

Decade of deceit

What makes the case particularly troubling is its endurance. For more than ten years, staff within the Ministry allegedly collected illegal payments from agents seeking RPTKA approvals. The Acting Director of Investigation at KPK, Budi Sukmo Wibowo, said ministry personnel demanded payment under the guise of bureaucratic necessity.

“The process involved demanding a sum of money from agents on the pretext that the foreign manpower plan (RPTKA) could only be approved if the payment was made,” Budi explained.

The system reportedly worked like a well-oiled machine. Payments ensured expedited approvals, while silence and complicity were maintained through regular pay-offs distributed across a wide internal network.

Key players and cascading benefits

Among the eight individuals formally named as suspects, the spotlight has fallen on Haryanto (HY) – former Director of the Foreign Worker Utilisation Control Directorate (PPTKA) and later Expert Staff for International Affairs. He allegedly pocketed Rp18 billion, making him the biggest beneficiary of the illicit stream.

But the rot appears to have run deep. Budi also confirmed that approximately 85 ministry personnel from the PPTKA and the Directorate General of Employment Placement and Job Opportunity Expansion (Binapenta and PKK) had a piece of the pie. Funds were reportedly channelled biweekly under labels like lunch allowances and miscellaneous expenses – even extending to office boys.

In total, around Rp8 billion was distributed internally in this fashion. Some assets were also allegedly purchased using family members’ names, hinting at attempts to cover tracks.

Money returned, but justice still unfolding

In a rare show of cooperation, some lower-ranking staff have begun returning their share of the tainted money. To date, roughly Rp5 billion has been handed back to the authorities. However, KPK has signalled it is far from finished.

The agency is now tracing all beneficiaries and pledged to bring everyone involved to book, regardless of rank or role. Legal proceedings are ongoing.

Ministerial clean-up and operational continuity

Manpower Minister Yassierli, speaking back in May, confirmed that several officials implicated in the scandal had been relieved of their duties. The dismissals took place between February and March this year, although exact figures were not disclosed. Yassierli maintained that foreign worker services continued uninterrupted, as those involved had already been sidelined.

“Please note that we have dismissed officials who were suspected of being involved in the case,” he said, while underlining that the ministry had formally handed over the case to the KPK.

The RPTKA document plays a critical role in Indonesia’s labour landscape. It outlines the need for hiring foreign talent, the roles to be filled, and how the company plans to transfer skills to local staff. Without it, companies cannot proceed to apply for the Izin Mempekerjakan Tenaga Kerja Asing (IMTA) – the permit required to obtain working and stay visas for foreign nationals.

Raid, red bags, and reputation

The investigation reached a new gear on Tuesday, when KPK conducted a high-profile search at the Manpower Ministry’s headquarters. Between 2:50 p.m. and 4:00 p.m., investigators swept Building A – home to the minister’s and deputy minister’s offices, the finance bureau, and several directorates.

At the end of the raid, four KPK officers were seen departing with two black bags, a large red plastic bag, and a white cloth bundle – a sight that has become symbolic of the Commission’s zero-tolerance stance.

“That’s correct. The raid is related to bribery or gratuities regarding foreign workers,” KPK deputy chairman Fitroh Rohcahyanto confirmed.

While the identities of all suspects have not been made public, Budi Prasetyo, the KPK spokesperson, stated that eight individuals had been formally named in the investigation.

A commitment to clean governance

The Ministry has since gone into damage control, pledging full cooperation with investigators. According to Public Relations Bureau Head Sunardi Manampiar Sinaga, the Ministry’s internal probe dates back to 2019. However, KPK’s own inquiry gained momentum only after receiving public complaints in July 2024.

“The Manpower Ministry remains committed to collaborating with all relevant parties to enhance accountability and uphold the principles of good governance,” Sunardi said, echoing a sentiment that has become increasingly common in recent anti-graft efforts.

Indonesia’s anti-corruption drive: optics or overhaul?

This latest scandal is just one of several that have surfaced in recent years, casting long shadows over Indonesia’s civil service. Yet, it also signals a shift. The KPK, once feared but recently thought to be losing teeth, is clearly making a renewed push to tackle entrenched corruption.

In business terms, corruption acts like a hidden tax – increasing the cost of doing business, deterring investment, and corroding public trust.

The scandal reinforces the importance of compliance, due diligence, and ethical engagement with local authorities.

The government’s public handling of this case – from raids to removals – suggests an intention not just to contain reputational damage but to dismantle the entire scaffolding of corruption. Whether this is a turning point or a temporary clean-up remains to be seen. But the old ways of greasing palms under the table are becoming harder to keep under wraps.

In a world where transparency is currency, Indonesia’s ability to take a stand against corruption will determine its attractiveness not just to foreign investors, but to its own citizens seeking honest work and fair governance.