ICC DECIDES PROCUREMENT CASE IN INDRAGIRI.

Jakarta (24/8) – 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 School Facilities and Infrastructure Rehabilitation and Renovation Packages in Indragiri Hilir Regency 1 and 2 today. The Commission Panel decided in Decision on Case Number 36/KPPU-I/2020 that the Reported Parties were proven to have violated Article 22 and imposed a total fine of IDR4,030,000,000 (four billion and thirty million rupiah) to the tender participating Reported Parties.

This case had its origin from an initiative taken by ICC by involving various Reported Parties, namely PT Adhikarya Teknik Perkasa (Reported Party I), PT Kalber Reksa Abadi (Reported Party II), and the Working Group (Pokja) for the Selection 14.1 of the Procurement of Government Goods/Services within the Implementing Work Unit of Settlements Infrastructure of Riau Province for Fiscal Year 2019 (Reported Party III). The said initiative pre-investigation proceedings proceeded with the examination stage by the Commission Panel Hearings.

Based on the hearings, the Commission Panel judges that the type of conspiracy committed by the Reported Parties constitutes a combined horizontal and vertical conspiracy perpetrated by Reported Party I and Reported Party II as business actors/providers of goods and/or services and they constitute mutual competitors in the tender a quo, with Reported Party III serving as the tender 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 III is deemed to have been negligent in performing its duties and obligations in accordance with the laws and regulations and is involved in the conspiracy of the Reported Parties.

The Commission Panel has assessed various instruments of proof presented by the Prosecuting Investigator and this case fulfilled the element of conspiring committed by the Reported Parties. Therefore, considering the existing various facts, assessment, analysis, and conclusion, the Commission Panel finally decided that the Reported Parties were proven to have violated Article 22 of Law Number 5 Year 1999 and imposed various sanctions on the Reported Parties. PT Adhikarya Teknik Perkasa serving as Reported Party I-cum-tender winner is subject to a fine of IDR2,050,000,000.00 (two billion fifty million rupiah) and PT Kalber Reksa Abadi (Reported II) is subject to a fine of IDR1,980,000,000 (one billion nine hundred and eighty million rupiah). Furthermore, ICC will give recommendations and considerations, one of whom to the Minister of Public Works and Public Housing of the Republic of Indonesia as the Personnel Development Official of the Riau Province to impose disciplinary sanction on Reported Party III.

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 amounting to 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.