Today KPPU Summons Cooking Oil Companies 'Market Controls' Allegedly Of Cartel

Illustration. (Photo: Doc. Antara)

JAKARTA - The Business Competition Supervisory Commission (KPPU) said that cooking oil companies that control most of the market are threatened by another article. This is related to the alleged cartel that was carried out on the increase in the price of cooking oil in the market.

KPPU Commissioner Ukay Karyadi explained that to investigate the alleged cartel practice, KPPU will start summoning a number of large companies starting Friday, February 4.

Furthermore, Ukay said that this was a follow-up action taken by KPPU regarding the case of cooking oil prices to law enforcement at KPPU.

"Regarding cartels, not only cartels, yes, there could be other articles involved. Because cartels regulate production and marketing," said KPPU Commissioner Ukay Karyadi in Indef's virtual discussion, Thursday, February 3.

For example, said Ukay, there are other allegations that can be entered into the joint price fixing article. In fact, it can also enter the article on the company's vertical integration.

"It is also possible to set prices together, an agreement to set prices can also be subject to articles on price fixing, which can be subject to articles on vertical integration," he said.

Ukay said that based on the research conducted, KPPU found that a number of large companies were actually vertically integrated. This means that the cooking oil producer is also directly involved in a group of companies with oil palm plantation managers.

Even so, Ukay said his party still needed to collect all the evidence. So, it's not just an assumption or conjecture.

"However, we can know from all of that as well as economically, that the indications are strong, but because the KPPU has given a decision, there needs to be sufficient legal evidence, so our investigators are working to find the evidence," he said.

Ukay also asked all cooking oil producers and related companies not to delay the call. This is to expedite the process.

"Later on, the cooking oil business actors, both related parties, if asked by the KPPU, do not delay. Because this is in the company's interest as well. Let there be certainty," he said.

According to Ukay, if the companies summoned are innocent, they can prove it.

"They can say that we have not been proven to have violated the fair business competition law," he said.