JAKARTA - The Commission for Supervision and Business Competition (KPPU) imposed sanctions of IDR 22.35 billion to PT Conch South Kalimantan Cement (CONCH) because it was proven to monopolise cement sales of Portland Composite Cement (PCC) in South Kalimantan. The case verdict was chaired by Commission Council Ukay Karyadi, and each member of commission panel, including Kodrat Wibowo and Harry Agustanto.
In a press release quoted on Monday (18/1), KPPU stated that CONCH sold PCC cement products at loss, in 2015. In addition, CONCH also set a lower average selling price compared to its competitors in 2015-2019. This conclusion was strengthened by evidence and 2015 Financial Statements.
KPPU Commission Council also mentioned that CONCH was controlled by Anhui Conch Cement Company Limited, which had the capital capacity to dominate cement industry worldwide. Financial support from the parent company gave CONCH the financial capacity to sell cement below cost of production in South Kalimantan.
According to KPPU Commission Council, CONCH's move led to an increase in market share of cement produced by CONCH and the withdrawal of 5 competitors from PCC cement market in South Kalimantan. (LK/VA)