Jakarta, July 29, 2025 – Indonesia’s Business Competition Supervisory Commission (KPPU) has ruled that four construction companies colluded in the tender for the Sintong Bridge project in Rokan Hilir Regency, Riau Province.
The decision was announced on July 28 during a hearing in Jakarta on Case No. 17/KPPU-L/2024. The panel, chaired by Mohammad Reza with members Hilman Pujana and Eugenia Mardanugraha, found PT Arkindo, PT Fatma Nusa Mulia, CV Sarana Chaini, and CV Aska Jaya Kontraktor guilty of violating Article 22 of Law No. 5/1999 on the prohibition of monopolistic practices and unfair business competition.
As a result, PT Arkindo was fined IDR 1 billion (around USD 64,500), while the other three companies were barred from participating in government-funded construction tenders (both state and regional budgets) across Riau Province for the next two years.
The case stemmed from a public complaint about the 2023 procurement process for the bridge project, which had a budget allocation of IDR 54 billion (about USD 3.5 million). KPPU investigators found strong evidence of “pseudo competition,” including similarities in bid documents, matching IP addresses among bidders, and identical pricing calculations. The tender process opened on April 4, 2023, and PT Arkindo was declared the winner just two weeks later with a bid of IDR 51.56 billion (approximately USD 3.3 million).
According to the commission, the scheme involved PT Arkindo setting up a branch office in Pekanbaru and enlisting the three other companies merely to meet the minimum number of bidders. These companies intentionally submitted flawed documents designed to be disqualified at the administrative stage, giving the appearance of competition.
While the tender committee (Pokja Pemilihan I of Rokan Hilir) was found negligent, there was insufficient evidence to prove direct involvement in the collusion. KPPU has recommended disciplinary action by the relevant authorities against the committee members.
KPPU stated that the ruling serves as a warning to deter similar practices in future government procurement.
Source: https://kppu.go.id/wp-content/uploads/2025/07/Siaran-Pers-No.-054_KPPU-PR_VII_2025_sign.pdf
