KPPU Fines Two Firms Rp4 Billion for Collusion in High-Speed Rail Procurement

Press Release

KPPU Fines Two Firms Rp4 Billion for Collusion in High-Speed Rail Procurement
Chairman of the Council Aru Armando, together with Council Members Budi Joyo Santoso and Gopprera Panggabean, read out Case Number 14/KPPU-L/2024. Photo: KPPU Public Relations Document
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Indonesia’s Competition Commission (KPPU) has fined PT CRRC Sifang Indonesia and PT Anugerah Logistik Prestasindo a combined Rp4 billion after finding them guilty of collusion in a Rp70.3 billion tender for land transportation services linked to the Jakarta–Bandung high-speed railway project.

The ruling was handed down at a decision hearing on Tuesday (July 22) at the KPPU office in Jakarta, chaired by Commission head Aru Armando with members Budi Joyo Santoso and Gopprera Panggabean.

The case stemmed from a public complaint alleging violations of Article 22 of Law No. 5/1999 on monopolistic practices and unfair competition. The two respondents were PT CRRC Sifang Indonesia, which also acted as tender committee, and PT Anugerah Logistik Prestasindo.

The procurement covered transport services for Electric Multiple Units (EMU), spare parts, and accessories from Jakarta’s Tanjung Priok Port to the Tegalluar Depot in Bandung, including customs clearance, unloading, land transport, and track placement.

Since hearings began in December 2024, both respondents were found to have engaged in dishonest practices, including open and covert cooperation to create “pseudo competition” in the tender process, facilitating collusion to ensure Respondent II’s victory.

The Commission concluded that the respondents’ actions violated Article 22 of Law No. 5/1999, constituting anti-competitive behavior. Their conduct resulted in closed, non-transparent, and discriminatory procurement—depriving the government of competitive pricing.

The panel determined that collusion occurred through; Creating artificial competition to manipulate and/or determine the tender winner; Facilitating Respondent II via improper evaluation of bid documents by Respondent I; Cooperation and early communication between Respondent I and Respondent II that gave undue advantage to the latter.

The Commission ruled that the respondents had failed to uphold the principles and ethics of the tender documents, privileging Respondent II to win the procurement.

Based on facts and evidence, the Commission declared both respondents legally and convincingly guilty of violating competition law.

Accordingly, the Commission ordered; PT CRRC Sifang Indonesia and PT Anugerah Logistik Prestasindo to each pay a fine of Rp2 billion to the State Treasury as penalty revenue. Payment must be made within 30 days once the ruling becomes legally binding (inkracht). Both respondents must also submit a bank guarantee worth 20% of the fine to KPPU within 14 days if they file an appeal.

This press release was issued on July 23, 2025 by Deswin Nur, Head of the Bureau of Public Relations and Cooperation, KPPU Secretariat General.