It has been a while since we conveyed our concern on the first phase construction of the Kalimantan-Java gas pipeline (Kalija I), a multi billion dollar project that the Bakrie Group won from PT Perusahaan Gas Negara Tbk (PGAS). Several years passed without any progress. Eventually, PT PGAS Solution, a subsidiary of PGAS, was tasked with continuing the project. The complex deal behind this, however, led to many problems, including allegations of unhealthy business practice in the auction of services, engineering, procurement, and construction (EPC) project for the pipeline. The Business Competition Supervisory Commission (KPPU) has been conducting a preliminary examination on the allegations since December 2018 and the latest hearing was held this week.
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