Indonesia’s Competition Commission (KPPU) has raised concerns over a recent ministerial regulation that it says could stifle competition in State-Owned Enterprise (SOE) procurement. The regulation in question, Minister of SOEs Regulation No. PER-2/MBU/3/2023, allows for direct appointment of goods and services providers, limiting these appointments to SOEs, their subsidiaries, or affiliated companies.
KPPU argues this policy, particularly Article 155(2)(j), restricts other businesses from competing fairly in SOE procurement, limiting opportunities for companies outside of the SOE ecosystem. KPPU Chairperson Ifan emphasized that this restriction contradicts competitive neutrality principles and “effectively stifles fair competition.”
In response, KPPU has recommended that the Ministry of SOEs remove this clause and ensure that direct appointments prioritize open and fair competition. KPPU has also requested ongoing consultation on policies impacting SOE procurement. A letter outlining these recommendations was sent to the Ministry on 25 October, underscoring the importance of transparency and competitiveness in public procurement.
Source: https://kppu.go.id/wp-content/uploads/2024/11/Siaran-Pers-No.-94_KPPU-PR_XI_2024.pdf
