KPPU Ready To Summon And Sanction Business Actors Who Violate Drug And Oxygen Price Rules

JAKARTA - The Business Supervisory Commission (KPPU) is following up on the increase in the price of COVID-19 drugs by conducting an inspection process in the realm of law enforcement. Including, will summon business actors who sell drugs above the highest retail price (HET).

Deputy Chairperson of KPPU Guntur Syahputra Saragih said that after seeing indications of the unreasonable price of COVID-19 drugs, his party decided to carry out further examinations through summons.

Furthermore, Guntur said, KPPU will determine whether the price disparity is due to high demand, production supply problems or due to business competition at the producer, supplier and distributor level.

"Regarding violations, every business actor is reminded that due to the Government Regulation, fines apply as a derivative of the Job Creation Act, the maximum fine given by KPPU is 10 percent of the sales of the relevant market or 50 percent of the profits of the relevant market," he said in a virtual press conference, Wednesday, July 7th.

In addition, Guntur hopes that there will be an active role from the public and consumers by helping to provide information to KPPU if they see any indications of violations of the high price of COVID-19 drugs. Including if you see a violation of competition in the pharmaceuticals and medical device industry.

"We hope this doesn't happen. We support the government's efforts to make COVID-19 medical devices and drugs available at reasonable prices, their availability is also affordable," he said.

"Although we understand that there is a policy to prioritize hospitals, we will see if there are violations or not," he continued.

The Business Competition Supervisory Commission (KPPU) conducted a survey of oxygen prices during the implementation of the emergency community activity restriction (PPKM) in DKI Jakarta. As a result, it was found that the selling price of oxygen rose sharply by up to 900 percent.

Head of Regional Office III of KPPU Aru Armando explained the problem of price and scarcity of oxygen cylinders in his working area. He said, oxygen, either portable or tube, the price of oxygen has increased significantly.

"If we survey the marketplace, it's 16 percent to 900 percent," he said at a virtual press conference, Wednesday, July 7.

From the results of a marketplace survey of several stores in the DKI Jakarta area, said Aru, there are 11 stores that sell Oxycan 500 cc portable oxygen with a price range of IDR 58,000 to IDR 450,000 with an average price of IDR 275,000.

"For shops that sell below average Oxycan, the stock or availability of goods is not more than 10 pieces. Meanwhile, those that sell above the average price, stock or availability of goods are 17-280 pieces," he said.

There are also 11 shops that sell oxygen cylinders measuring 1 M3 (one cubic meter) with a trolly and a full set of regulators with a price range of Rp. 800,000 to Rp. 1,594,000 with an average price of Rp. 1,045,000.

"The average stock or availability of goods is empty. Meanwhile, those who sell above the average stock price are 4 to 99 units in each store," he said.

Meanwhile, said Aru, in West Java, there are 8 shops selling 500 cc Oxycan brand portable oxygen in the price range of Rp. 185 thousand to Rp. 328 thousand. Even though the average price is IDR 253 thousand.

Then there are 7 shops that sell 1M3 oxygen cylinders with trolly and full set regulators with a price range of Rp. 775 thousand to Rp. 1.26 million.

"There is a store behavior that takes advantage of the high demand opportunity to increase the price of portable oxygen," he said.