KPPU Says There Are Big Players Doing PCR Business, Who Are They?

Photo by Mufid Majnun on Unsplash

JAKARTA - The Business Competition Supervisory Commission (KPP) smells the signs of big players involved in the PCR test business in the country. This indication is in line with the potential for unhealthy business competition in the COVID-19 medical device business.

KPPU's Director of Economics, Mulyana Ranamanggala, said that this large group of players was formed by laboratory business actors who facilitate the practice of PCR testing. He admitted that he was studying how the strength of this business group in the business market share was.

Unfortunately, Mulyana doesn't want to reveal further about the involvement of the names in the PCR business.

"For the data on business actors that were circulating earlier, maybe I can say some of them are true, but we will continue to verify the information circulating and the data we have obtained so we are still investigating it," he said in a virtual press conference, Friday, 12 November.

KPPU sees indications of efforts to maximize profits and unhealthy PCR business, one of which is through PCR test packages or bundling.

"When there is a bundling of PCR rates, when the PCR test is in consultation with a doctor, the cost can be compared to almost double," he said.

Not only that said Mulyana, but the potential for business and other unfair business competition that was found also came from the PCR test with the results coming out within 6 hours or less than one day.

"Actually, we think that bundling appeals like this creates unfair business competition because the essence is to prove whether the person has COVID-19, whether it is necessary to self-quarantine or be treated in a hospital," he explained.

The government is asked to be transparent in calculating HET

With the indication of this unhealthy business competition, KPPU asks for the need for transparency from the government regarding the calculation of the highest retail price (HET) for the PCR test.

Furthermore, Mulyana said that with a transparent calculation the purpose of the PCR test is nothing more than business.

"We saw and the results of our recommendation were also that the government needed a bundled inspection test that was given a fast result label so that the purpose of PCR is not more for business, not there, more for testing," he said.

Luhut and Erick Thohir are suspected of being involved in the PCR business

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan and Minister of SOEs Erick Thohir is suspected of being involved in the PCR business in Indonesia.

The mention of Luhut's name in the PCR business originated from Agustinus' statement that a number of ministers were related to the PCR test business. Agustinus revealed this through his Facebook account.

Initially, Agustinus quoted mass media reports about the PCR laboratory owned by politicians and conglomerates. In his upload, he said the composition of shareholders of PT Genomik Solidaritas Indonesia (GSI) had an affiliation with Luhut Binsar Pandjaitan.

The companies are PT Toba Bumi Energi and PT Toba Sejahtera. Agustinus explained that Luhut has a small stake in the two companies, of which Luhut is also known as the founder.

He also linked Erick with the Adaro Bangun Negeri Foundation which is related to PT Adaro Energy Tbk (ADRO). The company is headed by Erick's brother, Boy Thohir.

"The minister turned out to be affiliated with PT Genomics Solidaritas Indonesia. The PT business unit is GSI Lab which sells all kinds of COVID-19 tests: Sameday PCR Swab (275 thousand), Antigen Swab (95,000), PCR Mouth (495 thousand) thousand), S-RBD Quantitative Antibody (249 thousand)," wrote Agustinus.