KPPU Makassar Summons 2 Distributors Of Minyakita Suspected Of Selling To Retailers With Obligation To Buy Other Products

ILLUSTRATION/ANTARA/Abdu Faisal/am.

MAKASSAR - The Commission for the Supervision of Business Competition (KPPU) region VI Makassar, South Sulawesi, summoned two distributors of packaged Minyakita to be asked for clarification regarding the alleged violation of the distribution of this commodity which was deemed inappropriate.

"Meanwhile, we are still scheduling (summoning) two distributors in advance and we do not rule out the possibility that we will develop them for other witnesses, depending on the development," said KPPU Head of Region VI Hilman Pujana in Makassar as reported by ANTARA, Thursday, February 9.

Apart from the two distributors, said Hilman, the KPPU has also scheduled to examine and take statements from three Minyakita retailers. The distributors who were examined were only around the Makassar City area.

Regarding whether the distributor controls the market in Eastern Indonesia, Hilman cannot explain in detail because it is still in the research process.

"Later we will check (the results) during the examination because at this time we cannot provide further explanation," said Hilman.

The distributors were summoned after KPPU conducted monitoring in the downstream or market regarding the prices of the Oilikita products. The government has set the price for the subsidized packaged cooking oil at IDR 14,000, but in the market, it was found that Minyakita products were being sold for up to IDR 17,500 per package.

After checking with the main distributors at Bulog, the Indonesian Trading Company (PPI) and PT Smart, stocks of the packaged oil products are available, but the market prices are higher than the government's stipulations, so it is suspected that large distributors have misused them at retail stores.

"As a follow-up, I sent down a team because an item is in great demand by consumers, there must be added value, and it turns out that there is a conditional sale. The distributor is selling it to stores, if you want to get Minyakita, you have to buy another product," said Hilman.

The terms of the offer are margarine or butter, soap, and others. In the provisions of Law Number 5 of 1999 concerning the Prohibition of Monopolistic Practices and Unfair Business Competition, the actions taken by distributors have the potential to violate regulations.

"So, it's not permissible for people selling to want to buy this because they really need it, like the Minyakita product coupled with other products. Those are some of our findings," he stressed.

Regarding the existence of the agreement, currently, it was found between the distributor and the retail store.

"So, in practice, if retail stores want to take Minyakita, they have to take other goods. The information was obtained, they took it and from the invoice (purchase receipt) they found, they took the Minyakita, they also took other goods," explained Hilman.

From this practice, he continued, there were losses and on the other hand, distribution was hampered.

"If it's like that, it will fall on the selling price and harm consumers. The effect is for retail stores to have to buy goods that are not needed so that large costs are incurred by dividing the two products at once," continued Hilman.