JICA reported to business supervisory commission
Desy Nurhayati, The Jakarta Post, Jakarta | Thu, 06/04/2009 12:51 PM
The Indonesian Procurement Watch (IPW) filed a report Wednesday to the Business Competition Supervisory Commission (KPPU), arguing the city's Mass Rapid Transit (MRT) project's bidding process was unfair.
IPW's program director Hayie Muhammad said there were indications of a conspiracy between the Japan International Cooperation Agency (JICA) - the MRT project adviser - and Nippon Koei Co. Ltd., one of the tender participants.
He said the JICA had intervened in the tender process and influenced the Transportation Ministry's railway division to select Nippon Koei over Katahira Engineers International, which had initially been selected by the ministry as the tender process' winner.
"We believe the JICA and Nippon Koei conspired to oust Katahira. This may lead to unhealthy business competition. That's why we reported this case to the KPPU," Hayie told reporters at the KPPU office.
"We want the KPPU to investigate this case because the long-delayed MRT project has disadvantaged the government and the public. We are concerned this unclear tender might delay the construction for one year."
The IPW accused the JICA and Nippon Koei of violating the 1999 Law on the prohibition of monopolies and unhealthy business competition.
Confusion over the prolonged bidding process started when the ministry's railway division in February 2008 held a tender for the MRT project, in which Katahira, Nippon Koei and Pacific Consultant International participated.
The ministry initially chose Katahira over Nippon Koei in the bidding process. Pacific Consultant later withdrew from the tender due to internal problems.
IPW said the JICA asked the ministry in July 2008 to re-evaluate the tender result. The ministry responded by re-issuing a similar result, choosing Katahira as the winner.
The ministry's director of railway division Wendy Aritenang, who was later replaced by new director Tunjung Indrawan, approved the result.
In March, the new director established a committee to once again re-evaluate the bidding result, choosing Nippon Koei as the winner this time.
Hayie said the bidding process had violated the 2003 presidential decree on fair procurement, stipulating the process should give similar opportunities to all participants.
