IAW Reports Microsoft and Google to the KPPU, Chromebook Project Allegedly Key to Competition

ILLUSTRATION UNSPLASH/Alex Dudar

JAKARTA - Indonesian Audit Watch (IAW) has confirmed that it will report two global technology companies, Microsoft and Google, to the Competition Supervisory Commission (KPPU). This report relates to alleged unhealthy business competition practices in the Chromebook procurement project in the national education digitization program.

The complaint was filed in the form of a public report (DUMAS) with the number 001/IAW-DUMAS/KPPU/III/2026. IAW attached six documents, ranging from the facts of the trial, the findings of the Financial Audit Agency (BPK), to the legal analysis of business competition.

IAW assessed that this issue is not merely about procurement of goods, but concerns the design of the market which from the beginning is considered to lead to a certain ecosystem.

"This is no longer about buying the wrong thing or the wrong specifications. This is about the market structure that is formed to lock in one ecosystem," said IAW Founding Secretary Iskandar Sitorus in his statement, Friday, April 10.

According to IAW, the technical specifications in the Chromebook project systematically lead to the dominance of the Chrome OS ecosystem, including the Chrome Device Management (CDM) service. This condition is said to close the opportunity for other systems such as Windows or Linux to compete in the tender.

"If the specifications are locked from the beginning, then the tender is no longer a competition. It's just a formality," said Iskandar.

The allegation was strengthened by the fact of the trial at the Central Jakarta Corruption Court. During the trial, it was revealed that Microsoft had submitted an official objection to the procurement design, which was considered not to open up competition.

The issue was even said to have been discussed in the Cabinet Secretariat, but was not followed by a change in specifications.

"If a global player like Microsoft can't get in, it's not because it's losing out on competition. It's because it's not given the opportunity to compete," he said.

IAW assesses that this condition creates what is called illusory competition. Administratively, the tender continues and is followed by several participants, but all of them are in the same technology ecosystem.

"Who competes is only the distributor, not the technology. In fact, what determines the value is the technology," concluded Iskandar.

The BPK findings have also come under scrutiny. In a number of reports, it was found that devices were not used optimally, the distribution was not targeted, and dependence on repeated licenses was considered to burden the state's finances.

"In economic theory, if competition dies, the result will be expensive, ineffective, and unusable," said Iskandar.

In its report, IAW suspected that there were violations of a number of provisions in Law Number 5 of 1999, including Article 15 regarding closed agreements, Article 19 regarding the abuse of a dominant position, Article 22 regarding tender collusion, and Article 24 regarding market dominance.

IAW also highlighted the license-based business model in the Chromebook ecosystem, which is considered to create long-term dependence for the country.

"Once you get in, it's hard to get out. That's the essence of vendor lock-in," he explained.

IAW urges the KPPU to immediately conduct a preliminary examination by summoning all parties concerned, including Microsoft, Google, the relevant ministries, to distributors. In addition, the competition watchdog is asked to evaluate the design of the procurement policy for information and communication technology in a comprehensive manner.

IAW assessed that this case is a test for the KPPU in maintaining a healthy business competition climate in the midst of accelerating digitization of the public sector.

"If this is left unchecked, in the future all technology projects can be locked in the same way," said Iskandar.