Pasar Jaya's not a monopoly: KPPU

The Jakarta Post ,  Jakarta   |  Sat, 05/17/2008 11:15 AM  |  City

The Business Competition Supervisory Commission (KPPU) announced Friday its verdict in the monopoly and anti-competition case involving PD Pasar Jaya and four companies in a Melawai market revitalization project in Blok M, South Jakarta.

The supervisory commission was unable to prove any monopolistic practices occurred during the project, which involved PT Melawai Jaya Realty, PT Wijaya Wisesa, PT Cipta Gemilang Sejahtera and PT Santika Tirtautama.

"We are still not sure who reported this case to the supervisory commission. No legal documents have been sent to us stating who filed the report," said Listiyo Wismono, the legal representative of Pasar Jaya.

According to Listiyo, during the first phase of the project in 2005, Pasar Jaya did not hold a tender process.

Instead of establishing a tender, Pasar Jaya directly signed a contract with Wijaya Wisesa, which invested Rp 15 billion (US$1.6 million) in Pasar Jaya upon signing the deal.

The city-owned company said no tender was mandatory for the project, as regulated by a 2002 gubernatorial decree on guidelines for cooperation between city-owned enterprises and a third party.

"We didn't organize any tender because the regulation didn't say we should have," said Listiyo, referring to the decree.

Under the contract, the newly renovated market will be run by a private company for five years and will then be returned to Pasar Jaya.

"However, we need to make clear Wijaya Wisesa has already finished 80 percent of the project and has proven itself financially capable of carrying it out," he said.

The supervisory commission for the case, headed by Anna Maria Tri Anggraini, stated the gubernatorial decree the project used as a legal basis was weak.

It also suggested the decree be revised to accommodate a 2007 Home Ministry regulation on technical guidance for the development of regional assets, which states a tender is mandatory for such projects.

Under the new regulation, a tender should involve at least five interested companies, unless the project is considered urgent, in which case the developer can be directly appointed. (lva)

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