The Business Competition Supervisory Commission (KPPU) has detected alleged collusion in the Jakarta-Bandung (Whoosh) high-speed train procurement project involving PT CRRC Sifang Indonesia, a China PR company; and PT Anugerah Logistik Prestasindo.
Deswin Nur, Head of the Public Relations and Cooperation Bureau at the KPPU Secretariat General, said investigators reported alleged violations of Article 22 of Law Number 5 of 1999 concerning Land Transportation Procurement for the Supply of Electric Multiple Units (EMU) in the Jakarta Bandung High Speed Railways Project.
“The case originated from a public report involving CRRC Sifang Indonesia as the first reported party (which is also the tender committee) and Anugerah Logistik Prestasindo as the second reported party,” said Deswin, on Tuesday, December 17, 2024.
KPPU revealed various findings that pointed to collusion:
- CRRC Sifang does not have standard written regulations regarding the procedures for selecting providers of goods and/or services;
- CRRC Sifang did not conduct open or transparent acceptance and/or opening and/or evaluation of tender documents;
- CRRC Sifang won tender participants who did not meet the qualification requirements.
Ineligibility to be tender winners
KPPU suspects that CRRC Sifang has discriminated and limited tender participants to win the Prestasindo Logistics Award.
Although the company is considered unfit to be the tender winner, because it does not meet the paid-up capital requirements of Rp10 billion (US$619,138).
“The company also does not have similar experience or work experience related to the specified object, and did not get the highest value or score in the tender,” he said.
As a result, the alleged conspiracy has hampered or closed the opportunity for other participants to become tender winners. In fact, tender winners should be selected through an assessment of form, qualifications and responsive assessments.
The KPPU Commission Assembly, after hearing the results of the presentation, gave the reported party the opportunity to submit a response at the next hearing on January 7, 2025 with the Agenda of the Reported Party’s Response to the Alleged Violation Report (LDP) and Examination of Evidence/Documents.
