JAKARTA – The Yogyakarta branch of Indonesia Competition Commission (lit. Komisi Pengawas Persaingan Usaha/KPPU) is investigating the alleged illicit exclusive agreement regarding cooking oil purchase that was initiated by a distributor named PT Lestari Berkah Sejati (LBS).
Hendry Setiawan, Head of the Regional Office VII of KPPU, claimed that LBS listed some prerequisites for its users before they were allowed to acquire bulk cooking oil back in March 2022. “Each consumer that purchases cooking oil must purchase other products as well, such as flour, with a 1:1 ratio, and sets a minimum purchase of IDR 400 thousand per transaction,” he explained in a press release quoted Wednesday (2/11).
In March 2022, LBS controlled 73% of cooking oil supply, amounting to 415,680 kg, in Sleman, Yogyakarta. Meanwhile, the cooking oil demands in said area clocked up to 770,590 kg. “LBS controlled all the cooking oil supply for said region, excluding the lack of supply of 335,270 kg of cooking oil,” Setiawan further added.
According to Setiawan, LBS did not offer other choices for its consumers except to comply with said terms and conditions. On top of this, other prerequisite goods might go to waste as they need the cooking oil more than anything.
Therefore, LBS is said to allegedly violate Article 15 Section 2 Act No.5/1999 regarding the Prohibition of Monopolistic Practices and Unhealthy Business Competition. (LK/ZH)