TPJ appeals against verdict, Rp 1b fine

The Jakarta Post, Jakarta

PT Thames PAM Jaya (TPJ) has appealed against a verdict made by the Business Competition Supervisory Commission (KPPU) and the South Jakarta District Court, requiring the foreign water company to pay Rp 1 billion (US$111,111) in fines for collusion.

TPJ president director John Trew said in a press statement on Wednesday that his company had done nothing wrong during the recruitment of over 300 security officers for the company.

"TPJ has shown transparency and goodwill toward all stake holders in the open tender," according to the statement, which was also signed by the company's lawyers -- Humphrey R. Djemat and Darwin Aritonang.

KPPU fined TPJ Rp 1 billion on Dec. 13, 2004, accusing it of collusion with PT Interteknis Surya Terang (IST) in deciding the winner of the tender. The KPPU decision was further strengthened by a verdict at the South Jakarta District Court on Feb. 28, 2005.

According to the KPPU, TPJ and IST were guilty of violating Article 22 of Law No. 5/1999 on monopolies and healthy business competition because they colluded to determine the outcome of the Rp 5 billion tender.

Investigators concluded that the case came about after TPJ held an open bid to hire some 307 security officers, in which 16 companies made it past the prequalification stage. The tender committee later announced that only 12 of the companies fulfilled all necessary requirements.

But TPJ insisted that IST be included in the next stage of the tender process even though it did not submit documents for prequalification.

TPJ demanded that the Supreme Court annul the verdict, saying that Article 22 of the law No.5/1999 on monopolies and healthy business competition could not be used as a basis for deciding the case.

According to the statement, presidential decree No. 18/2000 on tender mechanisms could only be used in the procurement of goods/services that are fully or partly funded by government money.

Trew said TPJ was a company whose financial sources are foreign investors, mostly owned by British-based Thames Water Overseas Limited.

The appeal was submitted to the Supreme Court on March 14.

TPJ has been a partner of city-run water operator PD PAM Jaya since 1998. It serves tap water consumers in eastern Jakarta.