PLN objects KPPU ruling

State-owned electricity firm PT PLN has filed objection against a ruling of the Business Competition Supervisory Commission (KPPU) in relation to tender of technical services work at PLN Rantau Parapat Area in North Sumatra for the period of 2015-2020, Bisnis Indonesia reported on Tuesday.

The paper quoted Sutrisno, Public Relations Manager at PLN North Sumatra regional office as saying that the objection was filed with the Medan District Court and the Rantau Parapat District Court.

PLN declared PT Sumber Energi Utama and PT Mustika Asahan Jaya as the winning bidders in the tender. Sutrisno said that the two firms have met the qualification criteria set by PLN, and that there were no unfair practices in the tender process.

The KPPU has ruled that there was collusive practices in the tender for the projects held by PLN, and is thus in breach of Law No 5/1999 on monopoly and unfair business competition. The commission fined the two companies each with a penalty of Rp 1.23 billion. (*)