PLN defies court order, and maintains to re-tender the Java transmission project
Wednesday, August 2 2000 - 03:30 AM WIB
State-owned electricity company PT PLN defies the Jakarta Administrative Court's ruling and continues with its re-tendering of the Klaten (Central Java)-Tasikmalaya (West Java) 500 kilovolt (KV) transmission project.
Based on Bisnis Indonesia's observation, eight foreign or joint venture companies take part in the re-tendering of the project, that was initially won by a consortium led by PT Bukaka Teknik Utama but it was then revoked based on allegation of graft and financial incapability.
The eight companies participating in the re-tender include a consortium of Fujikoru-Wijaya Karya, Hyundai Construction, Siam Indische de La Mega Construction, a consortium of Saudi Cable-Samsung-LG-Twink-Simasindo, Sumitomo-BBSI, Alstom-Multifed-Jembo Construction, Energo Adidaya Construction and Asea Brown Bovery (ABB).
Those eight companies were selected by PLN on Tuesday.
The proceeding of the re-tendering is surprising considering that the Jakarta Administrative Court issued a verdict on Monday, ordering PLN to halt the re-tendering process while the case between PLN and Bukaka was still being heard in the court.
The verdict said that PLN should wait until a definite court decision before continuing with its next move over the project.
Bukaka Teknik president Ahmad Kalla regretted PLN's move of continuing with the re-tendering process.
"That re-tendering by PLN is very ironical. In time when we call for the supremacy of law, PLN totally ignores the court ruling," Ahmad Kalla said. "Such a court ruling must be respected."
The re-tendering of the Klaten-Tasikmalaya transmission project was based on a letter by Coordinating Minister for Economy, Finance and Industry Kwik Kian Gie addressed to PLN president Kuntoro Mangkusubroto. The letter, no S-126/M.EKUIN/05/2000, dated May 5, 2000, automatically annulled the previous tendering of the project that was won by a consortium of Bukaka-Mega Eltra-Wijaya Karya.
Bukaka then filed a legal suit against PLN and the office of the Coordinating Minister for Economy, Finance and Industry on July 6 after the government unilaterally annulled its earlier decision to award a Bukaka-led consortium to develop the power transmission project. (*)