Alleged Tying Practices In Purchasing Cooking Oil In Yogyakarta Rises To Investigation

Illustration of bulk cooking oil. (Between)

YOGYAKARTA - The tying agreement practice with the alleged PT Lestari Berkah Sejati (PT LBS) in the sale of bulk cooking oil continues to be investigated by the Business Competition Supervisory Commission (KPPU).

The practice of tying agreements requires the purchase of certain brands of cooking oil in order to obtain cheap cooking oil from distributors.

"The commission meeting has decided to raise the status to the investigation stage and form an Investigation Task Force Number 04-52/DH/KPPU.Lid.I/IV/2022," said Head of Law Enforcement Division of KPPU Regional Office VII Kamal Barok in Yogyakarta, Tuesday 24 May.

According to him, this task force is tasked with conducting an investigation into alleged violations of Article 15 paragraph (2) of Law Number 5 of 1999 related to the practice of tying in the sale of bulk cooking oil by PT Lestari Berkah Sejati in Sleman Regency.

"In law enforcement related to the issue of the increase in cooking oil prices carried out by the KPPU since the end of 2021, the Investigation Team of the KPPU Regional Office VII found a tying practice carried out by PT LBS in the sale of bulk cooking oil," he said, as reported by Antara.

In the process, he said, the team has collected information from the public, media, surveillance, and field inspections.

"We also invite several parties to obtain materials and information related to the behavior of PT LBS which requires buyers (consumers) of bulk cooking oil to buy other products worth a minimum of Rp. sold by PT LBS)," he said.

Kamal said that the increase in the status of law enforcement is also a strong warning step by the KPPU to business actors that after the re-opening of cooking oil export permits, there should be no business actors violating Law no. 5 of 1999 by tying in the sale of cooking oil.

"Upgrading the status to the investigation stage is a serious step for KPPU as an effort to support the government in solving the problem of selling cooking oil in the country," he said.

After the export of cooking oil is opened, there are business actors who practice tying, the KPPU will immediately enforce the law.

"Investigation in this case will take a maximum period of 60 working days and can be extended. The investigation is focused on fulfilling the elements of the articles that have been violated and the investigation team has sent a summons and a letter requesting data and information to PT LBS," he said.