JAKARTA – The Supreme Court backs the Indonesian Competition Commission’s (lit. Komisi Pengawas Persaingan Usaha/KPPU) petition to sanction PT Sinar Ternak Sejahtera (STS), an affiliate of PT Charoen Pokphand Indonesia Tbk (CPIN) with IDR 10 billion fine.
M. Hadi Susanto, Director of Prosecution of KPPU, confirmed that the Supreme Court has granted KPPU’s appeal regarding the sanction of IDR 10 billion fine and business license revocation due to neglect of partnership contract. “KPPU’s appeal was granted by MA last week (6/12). This decision has a legal permanent force and is mandatory,” he said in the press release quoted Monday (12/12).
According to Susanto, STS violated Article 35 Paragraph 1 of Act No.20/2008 regarding the Nucleus-Smallholder Partnership Scheme in the Chicken Farming Sector with 117 of its smallholders.
STS then filed an appeal for said decision, which had been granted by the Commercial Court of Central Jakarta District Court on September 19, 2022. In response, KPPU advanced the case to the Supreme Court on November 14, 2022.
STS is located in Bandar Lampung. It is listed as a subsidiary of PT Prospek Karyatama (PKT), a subsidiary of CPIN. As of September 2022, STS recorded total assets of IDR 1.36 trillion. (LK/ZH)