KPPU Considers Taking Legal Paths If You Find Rice Cartels

Rice (photo: Doc Antara)

JAKARTA - The Business Competition Supervisory Commission (KPPU) is considering taking legal action if later it is found that the cartel that causes domestic rice prices has soared.

KPPU member Hilman Pujana said his party had summoned the National Food Agency to the Indonesian Rice and Rice Milling Entrepreneurs Association (Perpadi) for discussions related to rare and expensive extortion problems.

Hilman said that his party had also formed a special investigation team consisting of a study team and a law enforcement team. The team will conduct an in-depth investigation based on the movement of rice prices in the market.

"If the context is that the output will be law enforcement, it means the law enforcement process," he said at the KPPU office, Jakarta, Wednesday, February 28.

Even so, Hilman said that he did not rule out the possibility of the results of the KPPU investigation in the form of suggestions or considerations for the government to evaluate policies.

"If later the context is a suggestion of consideration for the government, of course we will do it," he said.

Currently, continued Hilman, his party has not been able to conclude any indications of cartels in rare cases and high rice prices. This is because the process of gathering information and data is still ongoing.

"We are talking about indications that the cartel cannot be concluded at this time. The process of collecting information data is our basis, we cannot conclude at the beginning," he said.

Hilman said that the KPPU could only analyze the deficit in rice supply. Therefore, Hilman said that his party would deepen the demand side.

"In contrast to the initial analysis that we have from this result, of course the first is from the supply deficit. This was also confirmed by the Ministry of Agriculture that there was a decrease in last production from the demand, we are still investigating it," he explained.

"From the demand side yesterday, we also experienced several big days, Chinese New Year, then the democratic party also certainly increased the demand in the market a little," he continued.