ICC DECIDES TENDER CASE IN NORTH HALMAHERA.

The Indonesia Competition Commission (ICC) decided the Case of Alleged Violation of Article 22 of Law Number 5 Year 1999 regarding Tender for the Development of the Ngajam – Apulea Segment III Road (Ngajam Village – Apulea) at the Working Unit of the Public Works and Spatial Planning Office of North Halmahera Regency for the 2018 – 2020 Fiscal Year Regional Revenues and Expenditures Budget (Tender Code: 1455233) at the Head Office of ICC in Jakarta today.

Decision Number 30/KPPU-I/2019, which also constitutes the first decision of ICC at the onset of 2021, involved 5 (five) reported parties, namely:

1. Reported Party I, PT Ikhlas Bangun Sarana;
2. Reported Party II, PT Hapsari Nusantara Gemilang;
3. Reported Party III, PT Cipta Aksara Perkasa;
4. Reported Party IV, PT Alfa Adiel; and
5. Reported Party V, Working Group I of the 2018 Procurement Service Unit of the North Halmahera Regency (Pokja I ULP).

After going through the pre-investigation and hearing stages, the Commission Panel decided that Reported Parties I, II, III, and V were proven to have violated Article 22 of Law Number 5 Year 1999, meanwhile Reported Party IV was found not to have violated the article being charged. For such violation, the Commission Panel handed down a sentence in the form of administrative fine to the Reported Parties as follows:

1. Reported Party I, PT Ikhlas Bangun Sarana, was fined in the amount of IDR1,100,000,000.00 (one billion and one hundred million rupiah); and
2. Reported Party II, PT Hapsari Nusantara Gemilang was fined Rp. 1,000,000,000.00 (one billion rupiah).

The two Reported Parties are ordered to pay for the fine by no later than 1 (one) year from the said Decision has had a permanent legal force.

In the meantime, the Commission Panel handed down a sentence in the form of prohibition of Reported Party III, PT Cipta Aksara Perkasa, from participating in the procurement of goods and/or services deriving from the State Revenues and Expenditures Budget (APBN)/Regional Revenues and Expenditures Budget (APBD) for 1 (one) year throughout Indonesia as from this Decision has had a permanent legal force. The Commission Panel also ordered the three Reported Parties not to repeat such tender conspiracy with any party whatsoever in the procurement of the Government goods/services.

The Commission Panel also gave recommendations to the Commission in the Decision of the Case to grant recommendations and considerations to the North Halmahera Regency Government so as to establish coordination with the Regional Office VI of ICC in Makassar, South Sulawesi in the performance of the procurement of Goods and Services as well as the Personnel Development Official/Head of the Procurement Service Unit of the North Halmahera Regency as the superior of Reported Party V to impose administrative sanctions on the personnel in Pokja I of the Procurement Service Unit in the form of prohibition from being engaged in the Goods or Services Procurement Working Unit (UKPBJ) for 2 (two) years for having failed in performing their duties and having ignored the indications that have resulted in unfair business competition.