Minister of Energy and Mineral Resources Bahlil Lahadalia has addressed concerns regarding the tender process for the second phase of the Cirebon-Semarang (Cisem) gas pipeline project. The Business Competition Supervisory Commission (KPPU) is currently investigating alleged collusion in the tender.
Former Minister of Energy and Mineral Resources Arifin Tasrif recently testified as a witness on December 18, 2024, as part of the investigation.
In response to the allegations, Bahlil emphasized that the Ministry has adhered to established regulations, asserting that the claims must be backed by concrete evidence.
“I urge the KPPU not to create perceptions without clear proof. Allegations shouldn’t be made recklessly. We’ve worked properly and transparently. If KPPU wishes to investigate, they should provide evidence,” Bahlil stated at the BPH Migas office in Jakarta on Thursday, December 19, 2024, as reported by CNBC Indonesia.
Bahlil further clarified that an internal review within the Ministry of Energy and Mineral Resources confirmed that its team had acted in compliance with regulations. “KPPU should only speak once they have findings. Don’t talk prematurely while the investigation is ongoing,” he added.
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KPPU is investigating reports of suspected collusion in the tender for the Phase 2 Cirebon-Semarang Gas Transmission Pipeline Project (Batang-Cirebon-Kandang Haur Timur segment) under a multi-year contract valued at nearly Rp 3 trillion.
The tender, announced on April 23, 2024, involved activities such as detailed design, procurement of materials/components, manufacturing, construction, and installation of a 245 km gas pipeline network. It also included building metering stations and conducting commissioning tests.
The project, featuring 20-inch carbon steel pipes, aims to transmit 183 MMscfd of natural gas from Batang in Central Java to Kandang Haur Timur in West Java. The tender was awarded to the consortium of PT Timas Suplindo and PT Pratiwi Putri Sulung on July 14, 2024.
Alleged violations
The tender is reportedly suspected of violating Law No. 5 of 1999 on the prohibition of monopolistic practices and unfair business competition. As a result, the KPPU initiated an investigation on September 4, 2024, scheduling multiple summonses to gather at least two types of evidence.
These summonses have been directed at various related parties, including former Energy and Mineral Resources Minister Arifin Tasrif. In the near future, KPPU will also seek testimonies from other individuals connected to the tender.
Editing by Reiner Simanjuntak
