Thugs Act of Community Organizations as a Cause of Unfair Business Competition in Procurement Tenders in Government Agencies

DOI

10.2991/assehr.k.220204.051How to use a DOI?

Keywords

Thugs; Tenders; Anti Monopoly

Abstract

Intenders for the procurement of goods/services at government agencies, it is often monopolized by invisible hands. In fact, there are already anti-monopoly and unfair business competition arrangements as referred to in Law no. 5 of 1999 concerning the Prohibition of Monopolistic Practices and Unfair Business Competition. The results of preliminary research, it was found that there were elements of mass organizations who carried out thuggery actions by “begging” for projects for procurement of goods/services from government agencies, such as offices in provincial and district/city governments. The problems in this paper are how individual mass organizations carry out acts of thuggery in participating in procurement tenders in government agencies, and how the competition law sees the fact that there are elements of mass organizations who “force” to get job projects to the heads of local government agencies. This paper uses a normative research method with a qualitative approach. The data are sourced from interviews with Youth Organizations in the city of Medan, and field observations at related agencies under the Provincial and District/City Governments, especially Medan City. The results showed that: It turned out that there were elements in youth organizations (community organizations) who “forced” the heads of services in local government agencies, both provincial and district/city in North Sumatra, especially Medan City to be given work packages (projects).) in the tenders to be implemented. After being given, it turned out that the work package (project) was not carried out, but was sold to another party. The aim is to secure the heads of these services from thuggery actions that will be carried out if they are not given. Furthermore, the business competition law considers that if the individual head of the agency commits a vertical tender conspiracy, then there is a strong suspicion that unfair business competition will occur which will lead to monopolistic practices.

Copyright

© 2022 The Authors. Published by Atlantis Press SARL.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Martuasah H. Tobing
AU  - Ningrum Natasya Sirait
AU  - Mahmul Siregar
PY  - 2022
DA  - 2022/02/15
TI  - Thugs Act of Community Organizations as a Cause of Unfair Business Competition in Procurement Tenders in Government Agencies
BT  - Proceedings of the Second International Conference on Public Policy, Social Computing and Development (ICOPOSDEV 2021)
PB  - Atlantis Press
SP  - 339
EP  - 344
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.220204.051
DO  - 10.2991/assehr.k.220204.051
ID  - Tobing2022
ER  -