JAKARTA – The Indonesian Competition Committee (lit. Komisi Pengawas Persaingan Usaha/KPPU) discovered evidence that indicates a cartel practice that monopolise the market by restricting the distribution of cooking oil. This important trace drove KPPU to further proceed with the investigation phase.
“The investigation will be focused on the confirming the supposedly violated article and the suspect’s identity, as well as finding more evidence,” Goppera Panggabean, Investigation Director of KPPU, clarified in the press release quoted Monday (28/3).
According to Panggabean, this investigation of cooking oil price surge will take place 60 days onwards. Should any additional evidence come up, KPPU will continue to the preliminary investigation by the Committee Assembly Hearing. The hearing will then impose an administrative sanction in the form of a fine of 50% of the total profit gained from the illicit practice of a maximum of 10% of total sales in the cooking oil markt.
It was mentioned that the evidence search regarding this cooking oil price surge case began on January 26, 2022. In the said process, KPPU asked for the statements of 44 related parties in the distribution channel. They incude manufacturers, distributors, government’s associations, packaging companies, and retailers.
The cooking oil manufacturer presumably violated three articles, including price-fixing, cartel practices, and restricting the distribution of goods listed in the Law No.5/1999 regarding Monopolistic Practice and Unhealth Business Competition. (LK/ZH)