KPPU Reminds Entrepreneurs In North Sumatra Not To Play Prices Ahead Of Christmas-New Year

The price of broiler chickens survives expensively in Medan due to increasing demand (ANTARA/Evalisa Siregar)

The Business Competition Supervisory Commission (KPPU) of Regional Office I reminded entrepreneurs in North Sumatra not to play with prices, especially food commodities, during the Christmas 2023 and New Year 2024 periods.

"Don't take advantage of the situation to carry out practices that violate the Business Competition Law (Law Number 5 of 1999 concerning the Prohibition of Monopoly Practices and UnHealthy Business Competition-ed)," said Head of KPPU Regional Office I Ridho Pamungkas to ANTARA in Medan, quoted by ANTARA, Tuesday, November 28.

Ridho said one of the actions that violated regulations was a cartel. In this practice, companies agree with each other to control production or prices.

According to him, this is very detrimental to the community. "With the cartel, they hold the supply together," said Ridho.

For example, broiler meat, which is currently falling in price.

In the event of a cartel, chicken producers will simultaneously hold back their production so that stocks are difficult to obtain and that leads to soaring prices.

"When there is an agreement, it enters the realm of the cartel," said Ridho.

In addition, there are also opportunities for other modes that the KPPU Kanwil I is wary of, namely the bundle as happened to the government's cooking oil product, Oilita. In early 2023, there was a dredging of Oilita with other products from distributors in Medan.

The policy violates several rules including Law Number 5 of 1999 concerning Prohibition of Monopoly Practices and Unhealthy Business Competition and Circular Letter No. 3 of 2023 concerning People's Cooking Oil Sales.

"At that time, traders who took Oilita from distributors were forced to buy products that did not sell," said Ridho.