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Jakpro dismisses complaint over BMW Stadium tender process

City-owned developer PT Jakarta Propertindo (Jakpro) is set to proceed with the construction of the Jakarta International Stadium mega project in Tanjung Priok, North Jakarta, despite objections from losing bidder over the result of the tender

The Jakarta Post
Jakarta
Mon, September 16, 2019

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Jakpro dismisses complaint over BMW Stadium tender process

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span>City-owned developer PT Jakarta Propertindo (Jakpro) is set to proceed with the construction of the Jakarta International Stadium mega project in Tanjung Priok, North Jakarta, despite objections from losing bidder over the result of the tender.

Jakpro, which will oversee the Rp 4 trillion (US$ 281 million) project, officially declared on Aug. 21 that a joint operation scheme (KSO) led by PT Wijaya Karya Bangunan Gedung, a subsidiary of state-owned contractor PT Wijaya Karya (Wika), property developer PT PP Properti and construction firm PT Jaya Konstruksi had won the open tender for the construction of the project.

However, another KSO comprising state-owned construction companies PT Adhi Karya, PT Hutama Karya, PT Nindya Karya and PT Indah Karya, which lost the tender, sent an objection letter to the project owner, the National Public Procurement Agency (LKPP), as well as the Business Competition Supervisory Commission (KPPU).

Adhi Karya corporate secretary Ki Syahgolang Permata said the objection was based on the fact Jakpro had not initially invited Wika Gedung to participate in the bidding process.

Before the tender began, Jakpro reportedly invited PT Wijaya Karya but not its subsidiary.

Syahgolang also questioned the higher project value offered by the winning consortium.

The Adhi Karya-led consortium proposed Rp 3.78 trillion, Rp 300 billion less than the Wika Gedung-led consortium’s proposal of Rp 4.08 trillion.

“Therefore, we sent an objection letter to the project owner,” he said recently, as quoted by kontan.co.id.

In response, Jakpro’s project director for the stadium, Iwan Takwin, brushed off accusations of misconduct and stressed the tender process had been conducted transparently and in accordance with standard procedures.

He said Wijaya Karya delegated its authority to its subsidiary and had also informed Jakpro through a notification letter dated July 9.

Iwan explained that two things were assessed in the tender: a technical assessment that accounted for 70 percent of the final score and an assessment of the proposed price points, which accounted for the remaining 30 percent.

The technical assessment covered details pertaining to planning, designs, construction, technology, materials and the overall schedule.

“What we score first are the technical aspects because we want the project to be top quality and executed on time, or even faster,” he said as reported by kompas.com.

The tender committee gave the Adhi Karya-led KSO a technical score of 60.17 while the Wika Gedung-led KSO received 66.14. Iwan said the Adhi Karya-led KSO received a lower score as it had not fulfilled several requirements of the technical assessment.

As for assessing the proposed project cost, although the Adhi Karya-led KSO had proposed a lower figure, Iwan said the tender committee compared it with the owner’s estimate price of Rp 4.4 trillion.

“There are regulations on fair value. We don’t want tender participants to propose lower costs if it means they deliver substandard quality,” he added.

Jakpro corporate secretary Hani Sumarno said the company granted tender participants 20 days after the announcement to file any comments or objections regarding the tender process. However, she expressed regret that the losing bidder had sent a complaint letter to Jakpro’s board of directors instead of filing an objection.

Wika president director Tumiyana defended his side, saying the consortium won the tender by following all procedures, kontan.co.id reported.

The stadium, popularly known as BMW stadium, will stand some 70 meters high, equal to a 24-story building, on 22 hectares. The stadium, set to be the home ground of Jakarta-based soccer club Persija, is also expected to meet international standards and offer various facilities.

Unlike Gelora Bung Karno Stadium in Senayan, Central Jakarta, the 82,000-capacity stadium will have not have a running track.

The sporting complex will also be connected to public transportation via the LRT.

Jakarta Governor Anies Baswedan previously claimed the stadium would be similar in quality to world-class stadiums such as Manchester United’s Old Trafford and Real Madrid’s Santiago Bernabeu.

Despite the high expectations, the project has already had a long history of problems. Besides the current spat over the construction tender, the project has also faced hurdles amid ongoing legal disputes pertaining to land ownership.

BMW Park was originally designated as a green area during the city's Bersih, Manusiawi, Wibawa (Clean, Humane, Dignified), or BMW, program in the 1960s. However, since the early 1990s, squatters had occupied the land.

In 1994, the city administration claimed it had acquired the land by delivering consignment funds to the North Jakarta District Court, which established the administration as the legal owner of the land.

The city held a groundbreaking ceremony for the stadium in 2014, but a civil suit was filed by private developer PT Buana Permata Hijau (BPH) regarding two different certificates, which prevented the city from proceeding with the construction.

In 2015, the court ruled in favor of the city administration’s appeal over 10.7 ha of land under the certificates.

However, the North Jakarta State Administrative Court (PTUN) ruled in May in favor of BPH regarding 9.6 ha regulated under different certificates. The verdict annulled two separate land-use right certificates for the administration issued by the National Land Agency in 2017 for the location of the stadium.

The administration has filed an appeal against the ruling. (sau)

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