The Supreme Court Upheld ICC Decision on Bid Rigging in The Construction of A Swimming Pool in South Kalimantan.

Jakarta (4/2) – The Supreme Court of Indonesia upheld ICC’s Decision regarding the case of bid rigging of the Phase II Swimming Pool construction work in Kandangan, South Hulu Sungai, South Kalimantan. With the Supreme Court Decision Number 1265 K/Pdt.Sus- KPPU/2021 issued on November 17, 2021 and published in the case information system on January 6, 2022, the ICC’s Decision number 05/KPPU-I/2020 is declared permanently legally binding and the Reported Parties are obliged to implement the Decision. In particular, PT Cahayahikmah Jayapratama is obliged to pay a fine of Rp. 1,350,000,000. (one billion, three hundred and fifty million rupiah) no later than 30 (thirty) days from the receipt of the verdict.

This case was an initiative case and involved several Reported Parties, namely PT Cahayahikmah Jayapratama (Reported Party I), PT Karya Kandangan Nasional (Reported Party II), PT Diang Ingsun Mandiri (Reported Party III) and the Working Group (Pokja) of the Procurement Service Unit (ULP), Hulu Sungai Selatan Regency in the Implementation of Phase II Swimming Pool Building Construction Work, Kandangan District (Reported Party IV). In this case, ICC found that there was a pseudo-competition carried out by all business actors who became the Reported Party in the procurement, as well as the existence of omission actions carried out by the Tender Committee despite knowing various indications of conspiracy in the procurement.

In this case, the Commission Panel decided that the Reported Parties have legally and convincingly violated Article 22 of Law Number 5 of 1999 concerning the Prohibition of Monopolistic Practices and Unfair Business Competition, and imposed a fine to the Reported Party I with the amount of IDR 1,350,000,000 (one billion, three hundred and fifty million rupiah), as well as a two-year ban on participating in procurement funded by the state revenues and expenses budget (APBN) or regional revenues and expenses budget (APBD) to Reported Parties II and III. Meanwhile, ICC also recommends the Guidance Officer/Head of the Procurement Service Unit of Hulu Sungai Selatan Regency as the supervisor of the Reported Party IV to impose administrative sanctions to the officers of the Reported Party IV in the form of prohibition from being involved in the Goods or Services Procurement Work Unit (UKPBJ) for 1 (one) year.

The Reported Party IV then appealed the ICC’s Decision to the Commercial Court of Surabaya. On April 5, 2021, The Commercial Court through Decision Number 1/Pdt.Sus- KPPU/2021/PN-Niaga Sby granted the objection in part, particularly for the decision which stated that the Reported Party IV was legally and convincingly proven to have violated Article 22 of Law Number 5 of 1999.

ICC then submitted a cassation request on April 19, 2021, with a memorandum of cassation received on May 3, 2021. Based on its decision, the Supreme Court of the Republic of Indonesia is of the opinion that there are sufficient reasons to grant the ICC’s appeal and cancel the Commercial Court’s Decision of Surabaya.