ICC DECIDES ROAD TENDER CASE (SEI SAREN–TELUK NILAU–SENYERANG–BTS. RIAU) IN JAMBI.

Jakarta (16/11) – Indonesia Competition Commission (ICC) read out its decision today regarding Alleged Violation of Article 22 of Law Number 5 of 1999 regarding the Procurement of the Sei Saren – Teluk Nilau – Senyerang – Bts. Riau Road Work Package within the Public Works and Public Housing Service Office of the Jambi Provincial Government for the 2017 Fiscal Year Regional Revenues and Expenditures Budget. The Commission Panel decided in Decision on Case No. 32/KPPU-I/2020 that Reported Parties were proven to have violated Article 22 of Law 5/99 and imposed a sancation in the form of ban on PT Sarang Tehnik Canggihand PT Cipayung Bakti Mandiri from participation in the Public Procurement of Goods and/or Services in the field of road construction services using State Revenues and Expenditures Budget (APBN) and Regional Revenues and Expenditures Budget (APBD) funds throughout Indonesia for 1 (one) year as from the decision has had a permanent legal force.

This case stemmed from an initiative taken by ICC by involving various Reported Parties, namely PT Sarang Tehnik Canggih (Reported Party I), PT Cipayung Bakti Mandiri (Reported Party II), and the Working Group (POKJA) for Construction Service Works in the Highways Division of the Public Works and Public Housing Agency of Jambi Province for the Construction of Jalan Sei Saren – Teluk Nilau – Senyerang – Bts. Riau  for the Fiscal Year 2017 APBD (Reported Party III). The said initiative pre-investigation proceedingscontinued up to the examination stage by the Commission Panel Hearing.

Based on the hearings, the Commission Panel judged that the type of conspiracy perpetrated by the Reported Parties was a combination of horizontal and vertical conspiracies committed by Reported Party I and Reported Party II as business actors/providers of goods and/or services constituting competitors with each other in the tender a quo, with Reported Party III constituting the tender committee or the auction committee aimed at arranging and/or determining Reported Party I as the winner in the tender a quo. ICC found various forms of coordination between the Reported Parties and the facilitation by the tender committee in the hearings.

The Commission Panel judged that the various instruments of proof presented by the ProsecutingInvestigator had met the existence of the element of conspiring by the Reported Parties. Therefore, with due observance of the various existing facts, assessments, analyses, and conclusions as well as given the impactsof the Corona Virus Disease 2019 (Covid-19) pandemic, the Commission Panel decided that the Reported Parties were proven to have violated Article 22 of Law Number 5 of 1999 and imposed a sanction in the form of ban on PT Sarang Tehnik Canggih and PT Cipayung Bakti Mandiri from participating in the PublicProcurement of Goods and/or Services in the field of road construction services using State Revenues and Expenditures Budget (APBN) and Regional Revenues and Expenditures Budget (APBD) funds throughout Indonesia for 1 (one) year as from the Decision of ICC has had a permanent legal force. Furthermore, the Commission Panel will also ask for the granting of advices and considerations to the Minister of Public Works and Public Housing of the Republic of Indonesia, the Governor of Jambi Province, and the Head of the National Public Procurement Agency (LKPP).