The investigation team from the Business Competition Supervisory Commission (KPPU) found a cartel-related evidence during a law enforcement process related to the distribution of national cooking oil.
"Through this finding, the law enforcement status this week can be upgraded to Investigation stage," KPPU's Investigation Director Gopprera Panggabean noted in written statement on Monday.
This finding is related to the alleged violation of Law No. 5 of 1999 on Monopoly and Unhealthy Business Competition Practice Ban.
Specifically, it is related to the violation of article 5 (price fixing), article 11 (cartel), and article 19 letter "c" (market control through goods or services distribution restriction).
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The KPPU has started conducting law enforcement since January 26, 2022, with the objective of finding evidence related to alleged violation of Law No. 5 of 1999 on the issue of a surge in cooking oil price since the end of 2021.
The process is conducted in accordance with the study recommendation done by KPPU.
During the early law enforcement process, the investigation team had invited and requested statements or data from around 44 related parties, specifically producers, distributors, association, the government, packing companies, and retail actors.
Through this process, the investigation team found evidence that confirmed alleged law violation, specifically concerning price fixing, cartel, and market control.
The investigation process is conducted within 60 work days and can be extended, Pangabean stated.
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"The investigation will be focused on fulfilling the elements of the alleged article violation, determining the identity of the reported party, and finding at least one additional evidence," he elaborated.
If the investigation process can conclude the alleged elements of the article violation and obtain at least two pieces of evidence, then the law enforcement process can enter the Preliminary Examination by the Commission Assembly Meeting stage.
Through the Assembly Meeting process, the KPPU can impose administrative sanction in the form of a fine up to 50 percent of the profits obtained by the reported party through the violation, he explained.
Alternatively, the commission can fine the reported party up to 10 percent from their sales within the relevant market.
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Editor : Mahdani
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