LEGAL OVERVIEW ON THE GOODS AND SERVICES PROCUREMENT PROCESS IN ELECTRICAL STATE-OWNED ENTERPRISE (BUMN) GROUP COMPANY FROM THE PERSPECTIVE OF BUSINESS COMPETITION LAW

Abstract

PLN is a State-Owned Enterprise (BUMN) in the form of a limited liability company which carries out business activities in providing electricity for the needs of the people in Indonesia. PLN is a Holding Company in the PLN Group, which consists of several Subholdings, Subsidiaries and Affiliated Companies under PLN. To be able to provide electricity reliably, PLN certainly cannot be separated from the process of procuring goods and services. This research, will take an overview of the process of procuring goods and services within the PLN Group as one of BUMN Group Companies, and study whether the provisions for procurement of goods/services within the PLN Group has fulfilled the principles of fair business competition. The research method used is a normative legal research method using a constitutional approach and a conceptual approach. The results of this research indicate that the provisions related to the process of procuring goods and services in the BUMN Group Company, especially the PLN Group, do not fully comply with the principles of the fair business competition, especially those related to the permissibility of Direct Appointments to PLN Subsidiaries/Affiliated Companies without going through an open and competitive tender process. For this reason, the Government needs to enact statutory regulations that specifically regulate Group Companies, apart from the general provisions contained in the “Company Law” and the “UU BUMN”, because of the existence and business processes of BUMN Group Companies, especially those related to procurement of goods and services, as there is a high risk of violating laws and regulations related to the unfair business competition.