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An outline of bid-rigging dangers from the attitude of Indonesian competitors regulation
Briefly
Detecting rigged bids as soon as dominated the workload of KPPU (the Indonesian competitors authority), and whereas which will now not be the case, the variety of bid-rigging instances being dealt with by the KPPU at any given time stays comparatively excessive. Latest enforcement instances have targeted on development and public procurement initiatives. By these instances, KPPU has confirmed that it’s adept within the space of expertise – scrutinizing metadata and IP addresses of defendants to uncover proof of collusion.
Colluding to rig bids is an Article 22 violation beneath the Indonesian Competitors Legislation (Legislation No. 5 of 1999, as amended), for which KPPU could impose a high quality of IDR 1 billion or extra.
Development and public procurement initiatives are consistently beneath the highlight, not just for bribery and corruption dangers, but in addition for competitors dangers.
Companies taking part in a young, together with tenders organized by a authorities authority to acquire sure items and/or companies or organized by different events which are linked to public funding (e.g., within the case of value restoration), should keep vigilant to identify and mitigate the dangers related to Article 22 violations.
When taking part in a young, concentrate on the next crimson flags:
- Too many, too few, or common (recurring) individuals
- Very narrowly outlined scope of labor or product specification
- A number of individuals represented by the identical, associated, or affiliated representatives
- Contributors passing sure phases within the tender showing to have completely different ranges of data of the tender (together with scope/specification or proprietor’s estimate)
As a growing nation, Indonesia presents an abundance of infrastructure and procurement initiatives deliberate yearly by completely different establishments and backed by public funding. So if your organization intends to take part in these kinds of tenders, we might suggest a mix of:
- An enhanced compliance program that encompasses antitrust and competitors dangers, along with bribery and corruption dangers and different regulatory compliance
- Particular compliance coaching for the related personnel attending to tender issues to extend their sensitivity if something is amiss
- Common check-ups, yearly or bi-annually, to make sure that your organization’s coverage and compliance program is carried out to the suitable customary
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© 2022 HHP Legislation Agency. All rights reserved. HHP Legislation Agency is a member agency of Baker & McKenzie Worldwide. This may increasingly qualify as “Legal professional Promoting” requiring discover in some jurisdictions. Prior outcomes don’t assure the same consequence.
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