ICC DECIDES TENDER CASE IN SITUBONDO REGENCY.

Jakarta (19/8) – Indonesia Competition Commission (ICC) has read out its decision with regard to the Alleged Violation of Article 22 of Law Number 5 Year 1999 regarding the Procurement of Anchor Port Development Work Package in Situbondo Regency for Fiscal Year 2018. The Commission Panel decided that the Reported Parties were proven to have violated Article 22 and imposed a fine in a total amount of IDR3,250,000,000 (three billion two hundred and fifty million rupiah) on Reported Parties I, II, and III in Decision on Case Number 24/KPPU- I/2020.

This case had its origin from an initiative taken by ICC with regard to the construction work of the Anchor Port of Situbondo Regency for the 2018 Fiscal Year involving various business actors, namely PT Perkasa Jaya Inti Persada (Reported Party I), PT Kurniadjaja Wirabhakti (Reported Party II), PT Duta Ekonomi (Reported Party III), and the Working Group 110 of the Technical Implementing Unit of the Goods/Services Procurement of the Investment Service Office and One Stop Integrated Service (POKJA110 Unit Pelaksana Teknis Pelayanan Pengadaan Barang/Jasa Dinas Penanaman Modal dan PelayananTerpadu Satu Pintu) of the East Java Province (Reported Party IV).

Based on the various existing facts in the hearings, assessment, analysis, and conclusions, the Commission Panel eventually decided that the Reported Parties were proven to have violated Article 22 of Law Number 5 Year 1999 and imposed fines with different nominal values on the Reported Parties. PT Perkasa Jaya Inti Persada is subject to a fine of IDR1,250,000,000 (one billion two hundred and fifty million rupiah), PT Kurniadjaja Wirabhakti is subject to a fine IDR1,000,000,000 (one billion rupiah), and PT Duta Ekonomi is subject to a fine IDR 1,000,000,000 (one billion rupiah).

The Reported Parties must pay for the said fines based on the fine payment order by no later than 30 (thirty) days after the Decision has had a permanent legal force (inkracht). Delayed payment for the fines may be subject to a fine for delay of 2% (two percent) per month of the value of the fines. If the Reported Parties lodge an Objection, then they are obligated to hand over a bank guarantee of 20% (twenty percent) of the value of the fines to ICC by no later than 14 (fourteen) business days following the acceptance of the Decision.

The Commission Panel also suggests the Commission to give recommendations and considerationsto the Governor of East Java Province and/or the Personnel Development Official/Competent Official to impose disciplinary sanctions on the Working Group 110 of the Technical Implementing Unit of the Goods/Services Procurement of the Investment Service Office and One Stop Integrated Service of the East Java Province. The Commission Panel also makes a request to give recommendations to the National Public Procurement Agency (LKPP) to draft a regulation and/or guideline requiring the Committee for the Procurement of Goods/Services to compare bid documents among Providers and to the Head of Goods/Services Procurement Bureau of the Regional Secretariat of the East Java Provincial Government to attempt to make Reported Party IV better in goods and services procurement processes.