PGN's pipeline tender reported to anti-corruption commission

The tender for the construction of state owned gas distribution company PGN's 37-kilometer pipeline linking Muara Bekasi and Rawa Maju, West Java has been reported to the anti-corruption commission (KPK) for an indication of frauds in the bidding process, Bisnis Indonesia reported on Thursday.

The chairman of the State Enterprises (BUMN) Watch, Naldy Nazar Haroen, said in Jakarta on Wednesday that his organization reported the case to the anti-corruption comission due to an indication of unfair practices in the selection of the winner of the tender.

He said that PGN had named PT Citra Panji Manunggal (CPM) as the winner of the tender despite the fact that the company offered the highest bid in the tender. He added that another bidder PT Rabana-Hutama Karya JO which offered a lower bid was edged out of the tender.

Naldy said that PT Rabana-Hutama Karya bid the project for Rp 53.3 billion, much lower than Rp 99.3 billion offered by CPM. "It means that if Rabana was given the contract, it could save the state funds of up to Ro 40 billion," he added.

The 37 kilometer pipeline project is part of the second phase of the South Sumatra-West Java gas pipeline networks which are now under construction. (*)