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MEDAN COMMERCIAL COURT WINS ICC IN ITS OBJECTION TO LANGSA HOSPITAL TENDER CASE

2021, Indonesia, Anticompetitive Agreeement

The Commercial Court at Medan District Court in its Decision No. 01/Pdt.Sus/KPPU/PN.Niaga.Mdn read out on June 22, 2021 has rejected the Petition for Objection lodged by PT Mina Fajar Abadi on Decision of ICC Number 04/KPPU-L/2020 regarding Alleged Violation of Article 22 of Law Number 5 Year 1999 regarding Langsa Regional Referral Hospital Construction Work Package Tender of the Aceh Health Service Work Unit of the 2018 Fiscal Year Aceh Provincial Government. This Decision constitutes the fourth Decision won by ICC in objection proceedings at Commercial Courts since the putting into effect of Law No. 11 Year 2020 regarding Job Creation and Government Regulation No. 44 Year 2021 regarding the Implementation of Prohibition of Monopolistic Practices and Unfair Business Competition.

ICC commenced to handle the said case involving various Reported Parties, such as PT Mina Fajar Abadi (Reported Party I), PT Sumber Alam Sejahtera (Reported Party II), PT Arafah Alam Sejahtera (Reported Party III), PT Betesda Mandiri (Reported Party IV), PT. Eka Jaya Lestari (Reported Party V), PT Adhi Putra Jaya (Reported Party VI), and the Construction Working Group (Pokja Konstruksi)–LXXXIX of the Bureau of Procurement of Goods and Services of the Government of Aceh for the Fiscal Year 2018 (Reported Party VII) based on public reports). The Commission Panel has proved the existence of conspiracy perpetrated by the Reported Party I to win the tender in the hearing proceedings. Based on such action, the Commission Panel in its Hearing for the Reading Out of the Decision on February 11, 2021 then decided that PT. Mina Fajar Abadi (Reported Party I) and the Construction Working Group–LXXXIX of the Bureau of Procurement of Goods and Services of the Government of Aceh for the Fiscal Year 2018 (Reported Party VII) were legally and convincingly proven to have violated Article 22 and handed down a penalty on Reported Party I amounting to IDR1,723,500,000 (one billion seven hundred and twenty-three million five hundred thousand rupiah). PT Mina Fajar Abadi then lodged an Objection Petition to the Commercial Court at Medan District Court on such Decision of ICC.