Friday, March 5, 2021

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ICC managed to prove the existence of bid rigging and handed down a Decision on Phase II Swimming Pool Construction work procurement case in Kandangan, Hulu Sungai Selatan, South Kalimantan. ICC decided that the business actors being the Reported Parties were guilty of comitting a conspiracy through pseudo-competition and imposed penalty and prohibition for participating in procurement on the Reported Parties in a hearing for the reading out of Decision held yesterday on January 28, 2021.

The case deriving from the initiative of ICC and registered under Case Number 05/KPPU-I/2020, involved some 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) of Hulu Sungai Selatan Regency for the Implementation of the Phase II Swimming Pool Construction Work in Kandangan District (Reported Party IV).

The Commission Panel proved the existence of pseudo-competition committed by all business actors being the Reported Parties engaged in the procurement as well as proved the existence of acts of omision committed by the Tender Committee despite knowing various indications of conspiracy in the procurement in the trial proceedings.

The Commission Panel declared in its Decision pertaining to such case that the Reported Parties had legally and convincingly violated Article 22 of Law Number 5 Year 1999 regarding Prohibition of Monopolistic Practices and Unfair Business Competition. The Commission Council handed down a sentence in the form of a penalty to Reported Party I in the amount of IDR1,350,000,000 (one billion three hundred and fifty million rupiah) and imposed a penalty in the shape of prohibition from participating in procurement financed by the State Revenues and Expenditures Budget (APBN)/Regional Revenues and Expenditures Budget (APBD) for 2 (years) to Reported Party II and Reported Party III for the said breach. Reported Party I is obligated to pay for a penalty by no later than 30 (thirty) days after the decision has had a permanent legal force (inkracht) and is obligated to report and submit a copy of the penalty payment receipt to ICC.

The Commission Panel also gave recommendations to the Commission to provide suggestions and considerations to the Personnel Development Official/Head of the Procurement Service Unit of the Hulu Sungai Selatan Regency as the superior of Reported Party IV to impose an administrative sanction on the personnel at the Reported Party IV, namely the Working Group (Pokja) of the Procurement Service Unit (ULP) of Hulu Sungai Selatan Regency in the form of prohibition from being engaged in the Working Unit for the Procurement of Goods or Services (UKPBJ) for 1 (one) year due to having been derelict in performing its duties and owing to acts of omission with regard to the indications that had given rise to unfair business competition.