"Maxus?s tender does not violate anti-monopoly law"

The monitoring commission for business competition (KPPU) has found no violation in the tender for the procurement of barite and bentonite held by oil company YPF Maxus Southeast BV (now known as CNOOC Southeast Sumatra BV).

The anti-monopoly commission said that no proofs had been found that the company had been engaged in monopolistic and unfair practices in its recent tender, which was won by PT Macobar Inco Indonesia. However the commission said that in the tender for the procurement of the substance used in offshore exploration activities, the company had been involved in practices that could lead to unfair business practices.

According to the commission, the practices that could lead to unfair business practices included the requirement that the barite and bentonite products should carry American Petroleum Institute (API) monogram and good track record in offshore oil exploration. The requirement was only met by one of the bidders, which then won the tender.

The commission gave no sanction and only warned the company to revise its tender procedure according to the existing regulation. (*)