KPPU to investigate JORR tender<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The Business Competition Supervisory Commission (KPPU) will
\nset up a team to investigate the retendering process of the Rp 4
\ntrillion (US$384 million) Jakarta Outer Ring Road (JORR) toll
\nroad project if there's evidence of any violation of the
\nantimonopoly law, according to commission chairman Mohammad
\nIqbal.<\/p>\n
Iqbal told The Jakarta Post on Monday that the commission had
\nbeen monitoring and collecting information about the long delayed
\ntendering process.<\/p>\n
\"We will form a team to investigate the tendering process if
\nit violates Antimonopoly Law No. 5\/1999,\" Iqbal said.<\/p>\n
He made the comments amid reports that the Financial Sector
\nPolicy Committee (FSPC) had given special treatment to a
\nMalaysian consortium, one of the bidders.<\/p>\n
FSPC, which groups together senior economic ministers, has
\ngranted three options to the Malaysian consortium as a preferred
\nbidder. The FSPC is in charge of handling major sales of assets
\nworth more than Rp 1 trillion implemented by the Indonesian Bank
\nRestructuring Agency (IBRA).<\/p>\n
The retendering process started on Monday.<\/p>\n
The other bidders include Gamuda, Torno Internazionale Spa and
\nthe Jakarta Consortium.<\/p>\n
Reports said that the three other bidders were only informed
\nabout the special treatment facility given to the Malaysian
\nconsortium on Friday by the tendering committee.<\/p>\n
Separately, a member of the House of Representatives
\nCommission IV on transportation and infrastructure, Enggartiasto
\nLukita, said that both the government and the bidding committee
\nshould give equal treatment to all bidders.<\/p>\n
JORR is a 56.87 kilometer toll road project that was initially
\ndeveloped by three investors, PT Cakra Bhakti Margatama Persada,
\nPT Citra Mataram Satriamarga Persada and PT Marga Nurindo Bhakti
\nunder a build-operate-transfer (BOT) system with Jasa Marga. The
\nthree firms are linked to the eldest daughter of former president
\nSoeharto, Siti Hardijanti Rukmana.<\/p>\n
The three investors borrowed around Rp 1 trillion from local
\nbanks to finance the project, but after the country was hit by
\nthe Asian financial crisis in the middle of 1997, the project was
\ncanceled and investors were unable to repay the banks.<\/p>\n
IBRA then took over the loans and the project. IBRA then
\nteamed up with Jasa Marga to set up a new company called PT
\nJalantol Lingkarluar Jakarta (JLJ) to proceed with the project
\nand find new investors.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/kppu-to-investigate-jorr-tender-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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