ICC Commission Imposes A Fine of IDR 1.5 Billion on Lai Bui Min In Road Tender Case in Bogor District.

Friday, January 5, 2024

Tags :

Decision | Tender | ICC

Jakarta (8/12) – The Indonesia Competition Commission (ICC) imposed a fine of IDR 1.500.000.000 (one billion five hundred million rupiah) on Lai Bui Min in a case of conspiracy in the tender or procurement of a work package for the improvement of Kandang Roda-Pakansari Road in Bogor Regency for the 2021 fiscal year. The sanction was read out by the Commission Panel in the Decision Reading Session on Case Number 15/KPPU-L/2023 concerning Alleged Violation of Article 22 of Law Number 5 of 1999 related to the Procurement of Kandang Roda-Pakansari Road Improvement Work Package for Bogor Regency for the 2021 Budget Year, which was held today, Friday, December 8, 2023, at ICC Head Office in Jakarta. Acting as the Commission Panel in the hearing, Commissioner Ukay Karyadi as Chairman of the Commission Panel, accompanied by Commissioner Guntur Syahputra Saragih and Commissioner Harry Agustanto as Members of the Commission Panel.

The case, which originated from a public report, involved four reported parties, namely Lai Bui Min (Reported Party I), PT Lambok Ulina (Reported Party II), PT Tureloto Battu Indah (Reported Party III), and the Special Election Working Group II – 2021 Bogor Regency Goods/Services Procurement Work Unit (Reported Party IV). The Reported Party I, also known as Anen, is alleged to have been directly or indirectly involved in and/or related to the procurement as the executing contractor. Reported Party II is the winner of the tender, which is registered as having business activities in the construction sector. While the Reported Party III, the reserve winner of the tender, is registered with business activities in trade, services, agriculture and plantations, industry, construction, and printing, among others, The procurement, which was announced on February 1, 2021, has a project value of IDR 97.974.310.650.

In the hearing, the Commission Panel found that the Reported Parties I, II, and III were proven to have designed, prepared, and planned by means of cooperation between two or more parties openly or secretly adjusting documents with other tender participants with the aim of eliminating other business actors as competitors and/or to win certain tender participants, thus creating false competition. The conspiracy was proven, among others, through various electronic evidence and adjustments in the bid documents. Furthermore, the Commission Panel found a significant role of the Reported Party I in organising quasi-competition in the procurement. Particularly in finding a companion company, as well as making and submitting the offering documents of the companion company to participate in the tender. On the other hand, the tender committee, or Reported Party IV, due to its limitations, allegedly did not evaluate and clarify the indications of conspiracy in the procurement process.

By considering various facts and evidence in the hearing, the Commission Panel decided that the Reported Parties I, II, and III were legally and convincingly proven to have violated Article 22 of Law Number 5 Year 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition. For the violation, the Commission Panel imposed a fine on Reported Party I in the amount of IDR 1.500.000.000 (one billion five hundred million rupiah), which must be deposited to the State Treasury no later than 30 (thirty) days after the decision has permanent legal force (inkracht), and report and submit a copy of proof of payment of the fine to ICC. For the Reported Party II and Reported Party III, the Commission Panel imposed sanctions in the form of a prohibition for the two Reported Parties to participate in the procurement of goods and/or services sourced from the APBN/APBD for (one) 1 year in all regions of Indonesia since the decision has permanent legal force.

The Commission Panel also decided that the Reported Party IV was not proven to have violated, but recommended to the Commission to provide advice and consideration to the Personnel Supervisory Officer/official at the authorised Bogor Regency Government agency in West Java Province so that the Reported Party IV is given an increase in competence as a Goods and Services Procurement Officer, including an understanding of business competition law.