KPPU Investigate Alleged Discrimination At Gas Station Digitization Project, Pertamina: We Are Cooperative

Illustration - The Pertamina gas station digitization project is currently under investigation by the Business Competition Supervisory Commission (KPPU). (ANTARA)

PT Pertamina Patra Niaga, a subsidiary of PT Pertamina (Persero), has spoken about the KPPU investigation regarding alleged violations of unhealthy business competition in the digitization project of the Public Fuel Filling Station (SPBU).

Pertamina Patra Niaga Corporate Secretary Heppy Wulansari said his party respects the ongoing process at KPPU. He also ensured that the company would cooperate.

"We respect the ongoing process at KPPU and will be cooperative," he told VOI, Sunday, July 6.

For your information, the Business Competition Supervisory Commission (KPPU) will investigate violations of unhealthy business competition in the digitization project of PT Pertamina's Public Fuel Filling Station (SPBU) (Persero).

The investigation was carried out after an indication of discriminatory practice was found in choosing the method of procuring service providers for the project worth Rp3.6 trillion.

Previously, Head of the Public Relations and Cooperation Bureau of KPPU Deswin Nur said the Pertamina gas station digitization project in general included the procurement of near-time monitoring systems for the distribution and sale of fuel at 5,518 Pertamina gas stations out of a total of around 7,000 gas stations spread throughout Indonesia.

The main objective is to carry out the project to monitor or supervise fuel consumption, especially diesel subsidies at each gas station throughout Indonesia.

In order to implement the project worth Rp3.6 trillion, Pertamina has directly appointed one of the State-Owned Enterprises on the grounds of BUMN synergy without considering various other business actors who have the potential and ability to carry out the project.

The KPPU assesses that the direct appointment action has the potential to lead to the practice of discrimination prohibited by Law Number 5 of 1999 concerning the Prohibition of Monopoly Practices and Unhealthy Business Competition, as Pertamina has also taken in direct appointment for a logo-making project that has been cut off by KPPU through KPPU Decision Number: 02/KPPU-L/2006, "he said in an official statement, Sunday, July 6.

Deswin said Pertamina's direct appointment was considered to close the space for healthy competitions, as well as create barriers to entry or entry barriers for other business actors.

The KPPU also noted that other business actors had previously expressed a willingness to take part in similar projects, but were not given room to compete. Thus, it raises allegations of discrimination in the procurement process.

"In other words, direct appointments that do not open opportunities for other business actors show allegations of discrimination," he said.

Daswin said the KKPU assessed that this digitalization project has a fairly large value and directly has a connection with state expenditure related to fuel subsidies. So Pertamina should first open up opportunities for all business actors in Indonesia to get the best price and quality offers.

Therefore, said Deswin, the KKPU assesses that the government is reviewing policies related to the synergy of SOEs because they have the potential for inefficiency and business barriers to occur as well as in the implementation of this project.

"Alternative regional-based procurement with an open tender mechanism should be a solution so that performance and efficiency can be measured, and business competitions are maintained because they reduce barriers to entry barriers (entry barriers) in the industry," he said.

Responding to the initial evidence, KPPU decided to start investigating the alleged violation of Article 19 letter d of Law no. 5/1999 concerning the prohibition of discrimination practices committed by Pertamina against certain business actors.

"This step is part of KPPU's commitment to maintaining a healthy, transparent, and accountable climate of competition, especially in national strategic projects involving large-scale public funds," he explained.