ICC DECIDES PACIRAN PORT CONSTRUCTION TENDER CONSPIRACY CASE IN LAMONGAN REGENCY.

Jakarta (30/7) – Indonesia Competition Commission (ICC) read out its decision with regard to Alleged Violation of Article 22 of Law Number 5 Year 1999 regarding the Procurement of the 2018 Fiscal Year Paciran Ferry Port Construction Package in Lamongan Regency today. The Commission Panel decided that the Reported Parties were proven to have violated Article 22 and imposed a total fine of IDR1,820,000,000 (one billion eight hundred and twenty million rupiah) on the tender participatinggg Reported Parties in Decision of Case Number 28/KPPU-I/2020.

This case had its origin from an initiative made by ICC by engaging various Reported Parties, namely PT Kurniadjaja Wirabhakti (Reported Party I); PT Dian Sentosa (Reported Party II); PT Mahakarya Tunggal Abadi (Reported Party III); and the Working Group 110 Construction I of the Technical Implementing Unit of the Goods/Services Procurement of the Investment Service Office and One Stop Integrated Service (Pokja 110 Konstruksi I Unit Pelaksana Teknis Pelayanan Pengadaan Barang/Jasa Dinas Penanaman Modal dan Pelayanan Terpadu Satu Pintu) of the East Java Province (Reported Party IV). The said initiative pre-investigation proceedings proceeded with the examination stage by the Commission Panel Hearing.

Based on the hearings, the Commission Panel judges that the type of conspiracy perpetrated by Reported Parties constitutes a combined horizontal and vertical conspiracy committed by Reported Party I, Reported Party II, and Reported Party III as business actors/providers of goods and/or services, wherein they constitute mutual competitors in the tender a quo with Reported Party IV being the tender committee or auction committee the purpose of which is to arrange and/or determine Reported Party I as the winner in the tender a quo. Therefore, Reported Party IV is judged to have been negligent in discharging its duties and obligations in accordance with the laws and regulations and was involved in the conspiracy of the Reported Parties.

The Commission Panel has assessed various instruments of proof as presented by the Prosecuting Investigator and this tender conspiracy case as fulfilled the element of conspiring as committed by the Reported Parties. Hence, in light of the existing various facts, assessment, analysis, and conclusion, the Commission Panel finally decides that the Reported Parties are proven to have violated Article 22 of Law Number 5 Year 1999 and imposes various sanctions on the Reported Parties. PT Kurniadjaja Wirabhakti constituting Reported Party I-cum-tender winner is subject to fine of IDR1,470,000,000 (one billion four hundred and seventy million rupiah), PT Dian Sentosa (Reported Party II) is subect to a fine of IDR200,000,000 (two hundred million rupiah), and PT Mahakarya Tunggal Abadi (Reported Party III) is subject to a fine of IDR150,000,000 (one hundred and fifty million rupiah). Furthermore, ICC will give recommendations and considerations, one of whom is to the Governor of East Java as the East Java Provincial Government Personnel Development Official to impose a disciplinary sanction on Reported Party IV.

The Reported Parties must pay for the said fines based on the fine payment order by no later than 30 (thirty) days after the Decision has had a permanent legal force. Delayed payment for the fines may be subject to a fine for delay of 2% (two percent) per month of the value of the fines. If the Reported Parties lodge an Objection, then they are obligated to hand over a bank guarantee of 20% (twenty percent) of the value of the fines to ICC by no later than 14 (fourteen) business days following the acceptance of the Decision.