Indonesia’s KPPU Fines Bogor Hospital Tender Participants $178K for Bid Rigging

construction workers erecting a steel frame

Jakarta, January 26, 2026 — Indonesia’s KPPU has found collusion in the tender for the construction of the Bogor Regency Regional General Hospital (RSUD) for the 2021 fiscal year, imposing total fines of IDR 3 billion (approximately $178,656) on two companies involved in the scheme.

In Decision No. 03/KPPU-L/2025, delivered on January 26, the commission concluded that the tender process was manipulated to secure a predetermined winner, in violation of Article 22 of Law No. 5/1999. The ruling followed hearings held in Jakarta and concerned collusion involving two bidders and the procurement working group responsible for the tender.

Findings of Collusion

KPPU determined that PT Jaya Semanggi Enjiniring and PT Permata Anugerah Yalapersada engaged in both horizontal and vertical collusion, coordinating with each other and benefiting from the inaction of the procurement working group of Bogor Regency’s Goods and Services Procurement Unit.

Investigators identified extensive similarities in the bidders’ tender documents, including identical typographical errors, uniform material and equipment support letters, and documents that were not recognized by their purported issuers. The commission also found that bid documents were uploaded from the same location and device, supported by matching IP addresses and document metadata.

Additional links between the two companies were established through shared notarial involvement in setting up branch offices in Medan and Makassar, reinforcing KPPU’s conclusion that the conduct was deliberate and coordinated rather than coincidental.

Sanctions and Recommendations

KPPU imposed a fine of IDR 2 billion on PT Jaya Semanggi Enjiniring and IDR 1 billion on PT Permata Anugerah Yalapersada. While the procurement working group was also found to have violated the law, the commission focused monetary sanctions on the corporate participants.

The commission further recommended that the government procurement policy agency, LKPP, review rules governing the participation of branch offices in public tenders. KPPU also urged the superior authority of the procurement officials involved to impose disciplinary sanctions in line with applicable regulations.

The decision underscores KPPU’s continued focus on safeguarding integrity in public procurement, particularly for strategic infrastructure projects. The commission emphasized that collusive tender practices undermine transparency, efficiency, and the delivery of quality public services, ultimately harming the public interest.

Source: https://kppu.go.id/wp-content/uploads/2026/01/Siaran-Pers-No.-04_KPPU-PR_I_2026.pdf

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