KPPU opens trial over alleged bid-rigging in CISEM II gas pipeline project
Monday, October 6 2025 - 10:01 AM WIB
Business Competition Supervisory Commission (KPPU) began the trial on alleged bid-rigging in the Phase II Cirebon–Semarang (CISEM II) gas pipeline project, a 245-kilometer, Rp 2.98 trillion (about USD 179 million) pipeline under the Ministry of Energy and Mineral Resources (MEMR). The project, fully funded by the state budget under a 2024–2026 multi-year contract, aims to transport gas to industrial areas in Central and West Java.
KPPU’s investigation, concluded in June 2025, found indications of both horizontal collusion among bidders and vertical collusion involving the MEMR’s tender committee. Five entities were named as alleged violators: PT Timas Suplindo, PT Pratiwi Putri Sulung, PT Pembangunan Perumahan (Persero) Tbk, PT Nindya Karya, and the MEMR Selection Working Group 7. Evidence included repeated addenda in tender documents, system disruptions, submissions outside the electronic procurement platform, and similarities in technical documentation among participants.
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During the first hearing on Oct. 2, the panel, led by KPPU Chair M. Noor Rofieq with members Rhido Jusmadi and Gopprera Panggabean, reviewed procedural and documentary matters. The initial tender attracted seven participants, narrowing to two consortia in the final selection stage. The contract was ultimately awarded to a consortium of PT Timas Suplindo and PT Pratiwi Putri Sulung.
KPPU noted that the findings suggest possible coordination that may constitute a violation of Article 22 of Law No. 5 of 1999 on collusion in public procurement. The agency said the case could have implications for state efficiency and investor confidence in strategic national projects.
The next trial session is scheduled for Oct. 22, 2025, when the respondents are expected to present statements and supporting evidence.
Editing by Alexander Ginting