Ensuring Compliance with the Principle of Business Competition, PRPP cooperates with KPPU to Oversee the Procurement of EPC's Work

Jakarta, December 14, 2022 - One of the important milestones of the PRPP in 2022 is initiate the Engineering, Procurement, Construction (EPC) procurement prequalification phase for the Grass Root Refinery (GRR) Tuban project which was marked by the announcement on October 4, 2022. As part of an effort to ensure that the procurement of the EPC works well based on applicable regulations and fair to all parties, PRPP runs an initiative to create a collaboration with several parties to oversee these activities.

On Tuesday (6/12/2022) PRPP held a Workshop on the Procurement Procedure for the EPC Works in GRR Tuban at the Borobudur Hotel in Jakarta in collaboration with the Business Competition Supervisory Commission of the Republic of Indonesia (KPPU). This activity is a follow-up activity after PRPP held similar activities with the National Public Procurement Agency and the Attorney General of the Republic of Indonesia which was held in October 2022.

Chairman of KPPI RI, Afif Hasbullah in his speech insists the importance of the concept of procurement in goods and services from the perspective of business competition and international procurement of goods and services. “The implementation of the procurement of the EPC work package on the GRR Tuban project must be carried out carefully and PRPP needs to strive for the correct procurement in order to avoid litigating with KPPU RI due to reports submitted by its tender participants feel aggrieved", said Afif. Afif also said that PRPP should carry out a self-assessment of the procurement regulations that have been made to comply with Indonesian regulations.

Furthermore, Afif said that the implementation of the EPC package procurement on the GRR Tuban project must be non-discriminatory. “We must enforce and implement fair, transparent, and process execution regulations that avoids asymmetric information by referring to the Regulation of Law no. 5 of 1999", he said it again.

At the workshop, PRPP also explained the contractor procurement strategy and the implementation of the GRR Tuban project EPC, it is planned that there will be 12 work procurement packages in the project.

On a separate occasion, President Director of PRPP, Reizaldi Gustino confirmed the company's commitment in implementing the principles of prudence in the procurement of EPC work for the Tuban GRR project. “As one of the National Strategic Projects that has received the spotlight from many parties, the implementation of EPC procurement work on the GRR Tuban project must be carried out carefully. All internal parties are obliged to ensure the implementation of all relevant statutory provisions on the implementation of procurement", said Reizaldi.

Reizaldi expresses appreciation to the entire PRPP team for organizing a series of workshops related to the procurement of the EPC Project for the GRR Tuban Project in 2022. This is part of the strategic efforts to build trust among stakeholders regarding the continuity of this national strategic project and also emphasizes that 2023 will pose increasing challenges as the GRR Project approaches the crucial phase of EPC work implementation. Therefore, strengthening and expanding stakeholder support for the sustainability of this project is essential.

“Apart from being part of an effort to ensure the compliance aspects of legislation in the procurement of EPC work, a stage of workshop activities with stakeholders related to the implementation of this EPC work is part of the company's efforts to get support from stakeholders in the GRR Tuban project. We cannot carry out this work only by ourselves and we expect support from all stakeholders so that this megaproject runs smoothly”, Reizaldi continued.

The event was held in an informal way was attended by the Chairman of KPPU RI, Afif Hasbullah, S.H., M.Hum. accompanied by Secretary General of KPPU RI Ir. Charles Pandji Dewanto, M.A.P. and Director of Investigation KPPU Gopprera Panggabean, S.E., Ak.. To represents PRPP, Reizaldi Gustino as President Director was also attended with other related functions in PRPP.*