KCIC Denies Involvement in Alleged Collusion in Jakarta-Bandung High-Speed Rail Project

1 month ago 42

December 16, 2024 | 09:07 pm

TEMPO.CO, JakartaPT Kereta Cepat Indonesia-China (KCIC) has denied any involvement in the alleged collusion found by the Business Competition Supervisory Commission (KPPU) regarding the procurement process for Electric Multiple Unit (EMU) transportation services for the Jakarta-Bandung High-Speed Rail or Whoosh project.

“KCIC was not involved in the procurement process for the transportation service provider, and respect the investigative process conducted by the KPPU,” stated Eva Chairunisa, Corporate Secretary of PT KCIC, in a written statement issued on Monday, December 16, 2024.

The KPPU has issued a finding of collusion against PT CRRC Sifang Indonesia, the tender committee (Reported Party I), and PT Anugerah Logistik Prestasindo (Reported Party II) in the procurement of EMU transportation services. The KPPU alleges that PT CRRC Sifang Indonesia manipulated the tender process to favor PT Anugerah Logistik Prestasindo, awarding them the contract valued at Rp70.3 billion.

Eva clarified that the procurement process for EMU transportation, which involved transporting the EMUs from Tanjung Priok Port to the Tegalluar Depot between September 2022 and June 2023, was conducted internally by PT CRRC Sifang Indonesia as part of the High-Speed Rail Contractor Consortium (HSRCC). During that period, a total of 12 EMUs were transported in several batches to the Tegalluar Depot.

“According to the Engineering, Procurement, and Construction (EPC) contract between KCIC and the HSRCC consortium, KCIC received the EMUs from the CRRC Sifang manufacturer in a ready-to-operate condition, certified by the authorized institution,” Eva explained.

Eva emphasized that KCIC is committed to ensuring that all company activities adhere to the highest ethical and legal standards, including principles of good corporate governance.

Deswin Nur, Head of the Public Relations and Cooperation Bureau at the KPPU Secretariat General, clarified that the KPPU's findings fall within the realm of administrative law. Thus, this is not a criminal matter or an act of corruption. 

“If any criminal offenses are identified during the investigation, the matter will be referred to the authorized law enforcement agencies,” Deswin stated in a statement issued on Monday, December 16, 2024

The KPPU investigation was initiated based on a public report alleging collusion between PT CRRC Sifang Indonesia and PT Anugerah Logistik Prestasindo. The KPPU investigators identified several irregularities, including the lack of standard written regulations regarding the procedures for selecting goods and/or service providers within PT CRRC Sifang Indonesia, lack of transparency in the tender process, including the opening and evaluation of tender documents, and awarding the contract to a tender participant that did not meet the required qualification criteria, including the minimum paid-up capital of Rp10 billion.

The KPPU investigators concluded that PT CRRC Sifang Indonesia had discriminated against other potential bidders and manipulated the tender process to favor PT Anugerah Logistik Prestasindo. The KPPU suspected that the actions of the reported parties violated Article 22 of Law Number 5 of 1999 concerning tender collusion.

Following the presentation of the investigative findings, the KPPU Commission Assembly granted the Reported Parties an opportunity to submit their responses at the next hearing, scheduled for January 7, 2025, with the agenda of the Reported Parties' responses to the investigative findings and the examination of relevant evidence and documents.

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