KPPU Makassar Receives Information On Conditional Selling Practices Of Cooking Oil

The Regional Office VI of the Makassar KPPU and the South Sulawesi Trade Office while monitoring the availability of bulk cooking oil stocks on the market some time ago. ANTARA/Abriawan Abhe

MAKASSAR - Business Competition Supervisory Commission (KPPU) Regional Office (Kanwil) VI Makassar received information that there is a practice of "tying" or conditional sales in the sale and distribution of cooking oil.

Head of KPPU Kanwil VI Makassar Hilman Pujana said that his party is investigating information regarding the alleged conditional sales practices carried out by cooking oil distributors.

"Since the last few weeks, we have been intensively monitoring cooking oil sales due to problems in distribution and sales," he said as reported by ANTARA, Tuesday, February 7.

Hilman explained that tying practices are efforts made by sellers or distributors who require consumers/traders to buy a second product when they buy the first product, namely cooking oil, or at least consumers agree not to buy the second product elsewhere.

He explained that the practice of tying violated Law Number 5 of 1999 concerning the Prohibition of Monopoly and Unfair Business Competition.

Hilman mentioned Article 15 paragraph 2 of Law Number 5 of 1999, business actors are prohibited from entering into agreements made by business actors with other parties (business actors) which contain the requirement that the party receiving certain goods and/or services must be willing to buy goods and/or other services from supplying business actors.

Especially for monitoring the distribution of People's Cooking Oil (MGR) or known as OilKita, the results of the monitoring are suspected of violating business competition.

"Based on monitoring in the field, the KPPU Makassar Team received information regarding the behavior of distributors selling OilKita with the requirement that retail stores must buy other products from distributors," he said.

A conditional sale or "tying agreement" is a type of closed agreement in which a business actor enters into an agreement with another party that contains conditions that the party receiving certain goods and or services must be willing to purchase other goods and or services from the supplying business actor.

"We have received information from the parties involved, we will immediately summon them for questioning," he said.