KPPU rules Kelsri, PGN to pay penalty
Monday, March 7 2011 - 10:53 AM WIB
The Business Competition Supervisory Commission (KPPU) ruled on Monday PT Kelsri and state-owned gas distribution company PT Perusahaan Gas Negara (PGN) to pay financial penalty respectively worth Rp 4 billion and Rp 6 billion to the state for conducting an unfair business practice.
The KPPU said that PGN had given exclusive opportunity for PT Kelsri to join in a tender to build a gas pipeline two years about although the bidding document submitted by the latter company did not meet the tender requirement.
The KPPU ruling, however, did not require the tender to be annulled. Kelsri and PGN have the rights to file for an appeal within the next 14 days. Kelsri lawyer Iqnatus Supriyadi said that he would discuss the ruling with his client. But he added the would advise his client to field for an appeal as there is no evident that Kelsri and PGN had been engaged in a collusive practice to win the tender. (Giok)