The Business Competition Supervisory Commission (KPPU) imposed a total fine of Rp4 billion on PT CRRC Sifang Indonesia and PT Anugerah Logistik Prestasindo for being proven to have conspired in the procurement of land transportation for the supply of Electric Multiple Units (EMU) in the Jakarta Bandung High Speed Railways Project with a procurement value of around Rp70.3 billion.

The verdict was read out in the Decision Reading Panel Session held on Tuesday (22/07) at the KPPU Office in Jakarta by the Panel led by Panel Chairman Aru Armando with Commission Panel Members Budi Joyo Santoso and Gopprera Panggabean.

Case Number 14/KPPU-L/2024 concerning Alleged Violation of Article 22 of Law Number 5 Year 1999 related to Land Transportation Procurement for the Supply of Electric Multiple Units (EMU) in the Jakarta Bandung High Speed Railways Project was sourced from a public report.

The case involved two Respondents, namely PT CRRC Sifang Indonesia as the 1st Respondent (who was also the tender committee) and PT Anugerah Logistik Prestasindo as the 2nd Respondent.

The object of the case is the procurement of land transportation for the supply of Electric Multiple Units (EMU) for the Jakarta Bandung High Speed Railways Project.

The procurement covers the entire service activities for EMUs, spare parts, EMU accessories (goods) after the goods arrive at Tanjung Priok Port Jakarta, via sea transportation, i.e. conducting customs liquidation, unloading, land transportation work to transport goods from Tanjung Priok Port, Jakarta to Tegalluar Depot, Bandung and conducting unloading until the goods are placed on the designated rail.

In the trial that began on December 13, 2024, the two reported parties were proven to have committed various dishonest acts, namely openly or secretly cooperating in creating false competition related to the procurement process of the case a quo, and facilitating the conspiracy in order to win the Reported Party II.

The two reported parties have been proven to have committed unlawful acts, namely conspiracy actions that violate the provisions of the applicable laws and regulations, namely Article 22 of Law Number 5 Year 1999 and hamper business competition by conducting closed, non-transparent and discriminatory procurement.

This results in the loss of potential to obtain competitive prices in accordance with the objectives of the procurement of goods and services.

The Commission Panel is of the opinion that there has been a conspiracy by the Reported Party I and the Reported Party II in various ways, including creating false competition to regulate and/or determine the winner of the tender through the procurement process, facilitation of the Reported Party I over the Reported Party II through the Assessment of Bidding Documents that are not in accordance with the Tender Documents, and the Reported Party II cooperating both directly and indirectly and benefiting from the conspiracy through early communication with the Reported Party I. The Commission Panel is of the opinion that there has been a conspiracy by the Reported Party I and the Reported Party II.

The actions of the Reported Parties are evidence that the Reported Parties did not apply the principles and comply with the ethics in the Tender Documents and there has been a conspiracy through a series of actions that privileged Reported Party II to win the procurement of the a quo case.

Based on the facts and evidence of the trial, the Commission Panel decided that the Reported Party I and Reported Party II were legally and convincingly proven to have violated Article 22 of Law Number 5 Year 1999.

For this reason, the Commission Panel decided PT CRRC Sifang Indonesia and PT Anugerah Logistik Prestasindo to pay a fine of Rp2,000,000,000 (two billion rupiah) each, which must be deposited into the State Treasury as revenue from fines for violations in the field of business competition.

Payment of the fine must be paid no later than 30 (thirty) days after the Decision has permanent legal force (inkracht). In addition, the Commission Panel also ordered the Reported Parties I and II to submit a bank guarantee of 20% (twenty percent) of the value of the fine to KPPU no later than 14 (fourteen) days after this decision is made, if they file an objection.

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