CENTRAL JAKARTA DISTRICT COURT CONFIRMS DECISION OF ICC ON BID RIGGING IN THE PROCUREMENT OF DRINKING WATER SUPPLY SYSTEM IN BANDAR LAMPUNG CITY.

Central Jakarta District Court upholds Decision of the Indonesia Competition Commission (ICC) and turns down the application for Objection lodged by Reported Parties on Decision of ICC No. 14/KPPU-L/2019 regarding Alleged Violation of Article 22 of Law Number 5 Year 1999 (Law 5/1999) in Tender of Public Private Partnership Projects (PPP) with regard to the Drinking Water Supply System (SPAM) in Bandar Lampung City. The Panel of Judges at the Central Jakarta District Court in its decision read out today (27/1/2021) defended the Decision of ICC.

Such alleged conspiracy in the procurement of the implementing business entity over the PPP project for the Bandar Lampung City Drinking Water Supply System was sourced from public reports and ICC began hearing the case in the middle of 2019. This case involved various Reported Parties, namely PDAM Way Rilau Bandar Lampung City/Way Rilau Regional Water Utility of Bandar Lampung City (Reported Party I), PT Bangun Cipta Contractor (Reported Party II), and PT Bangun Tjipta Sarana (Reported Party III). ICC found various proofs of conspiracy by way of the granting of exclusive opportunity by Reported Party I to the other Reported Parties to win the procurement in the hearing of the Commission Panel of ICC chaired by Ukay Karyadi, S.E., M.E., and consisting of Dr. Drs. Chandra Setiawan, M.M, Ph.D. and Dinni Melanie, S.H., M.E.,as members.

The Commission Panel of ICC handed down a Decision on February 26, 2020 and declared that the Reported Parties were legally and convincingly proven to have violated Article 22 of Law 5/1999 and sentenced the Reported Parties to a total fine of nearly IDR8 billion, with the following breakdowns: Reported Party I (amounting to IDR1,747,000,000), Reported Party II (amounting to IDR3,843,000,000), and Reported Party III (amounting to IDR2,358,000,000) for such breach.

The Reported Parties subsequently lodged Objection to the Decision of ICC in various District Courts, namely Tanjung Karang District Court, South Jakarta District, and Central Jakarta District Court. In line with Regulation of Supreme Court No. 3 Year 2019 regarding Procedures for Lodging Objections to Decisions ofICC, in the event that an Objection is lodged by a Reported Party in various legal domiciles, then, it is necessary that the Supreme Court (MA) designate which District Court will examine the Objection. The Supreme Court appointed the Central Jakarta District Court to examine the Objection of the Reported Parties on May 27, 2020. After going through various processes of transferring of Objection briefs, the hearing undercase register number 161/Pdt.Sus.Online.KPPU/2020/PN.Jkt.Pst. was commenced by the Central Jakarta District Court on December 8, 2020.