KPPU Brings Good News: Finding Evidence Of Alleged Cooking Oil Cartel, And Ready To Take Legal Actions For Investigation

Illustration. (Photo: Doc. Antara)

JAKARTA - The Business Competition Supervisory Commission (KPPU) has found one piece of evidence in the law enforcement process related to the sale or distribution of national cooking oil that leads to the alleged cartel.

Director of Investigation Gopprera Panggabean said through these findings, this week the status of law enforcement has been able to be upgraded to the investigation stage. Especially for alleged violations of Article 5 (pricing fixing), Article 11 (cartel), and Article 19 letter “c” (mastery of the market through restrictions on the circulation of goods/services).

"With these findings, the investigation process is carried out within a maximum period of 60 working days and can be extended," he said in an official statement, Monday, March 28.

For information, KPPU has started the law enforcement process since January 26, 2022 in order to find evidence of alleged violations of Law Number 5 of 1999 regarding the increase in cooking oil prices since the end of 2021 in accordance with the recommendation of a study carried out by KPPU.

In the initial process of law enforcement, the investigation team has invited and requested data/information from around 44 related parties, particularly producers, distributors, associations, government, packaging companies and retail players.

Through this process, said Gopprera, the investigative team has found one piece of evidence that strengthens the alleged violation of the law, particularly on the articles on price fixing, cartels, and market domination.

"The investigation will focus on fulfilling the alleged elements of the article being violated, determining the identity of the reported party, and searching for at least one additional piece of evidence," he said.

In the event that the Investigation concludes that the alleged elements of the article have been violated and obtains at least two pieces of evidence, the law enforcement process may be continued to the Preliminary Examination stage by the Commission Council Session.

"Through the Assembly Session process, KPPU can impose administrative sanctions in the form of a fine of up to a maximum of 50 percent of the profits obtained by the reported party from the violation, or a maximum of 10 percent of the reported sales in the relevant market," he said.