Jakarta –
Allegations of a cartel in the cooking oil trade system began to emerge. The Business Competition Supervisory Commission (KPPU) has just found one piece of evidence in its investigation of the cooking oil cartel.
It should be noted that since last January, KPPU has been carrying out law enforcement processes related to alleged violations of sales competition or distribution of national cooking oil. The process begins with an investigation to find two pieces of evidence regarding the violations that occurred.
Now with one piece of evidence found, KPPU’s Director of Investigation Gopprera Panggabean stated that the status of law enforcement regarding the alleged cooking oil cartel has been raised to an investigation.
“Through these findings, this week the status of law enforcement can be increased at the investigation stage,” said Gopprera in a statement, Monday (28/3/2022).
KPPU sees several alleged violations of the cooking oil trade. The first is the alleged violation of pricing that violates Article 5 of Law No. 5 of 1999, the alleged cartel action that violates Article 11, and the allegation of market control through restrictions on the circulation of goods that violates Article 19.
In the initial process of law enforcement, the investigation team has invited and requested data or information from about 44 related parties. Starting from manufacturers, distributors, associations, governments, packaging companies, and retail players.
“The investigation process is carried out within a maximum period of 60 working days and can be extended. The investigation will focus on fulfilling the alleged elements of the article being violated, determining the identity of the Reported Party, and searching for at least one additional piece of evidence,” said Gopprera.
If the investigation can conclude the alleged elements of the article that were violated and obtain at least two pieces of evidence, then the law enforcement process can be proceeded to the stage of Preliminary Examination by the Session of the Commission Assembly.
Through the Assembly Session process, KPPU may impose administrative sanctions in the form of fines. The amount is a maximum of 50% of the profit earned by the reported party from the violation, or a maximum of 10% of the reported sales in the relevant market.
Allegations of the cooking oil cartel have begun to emerge, what is the modus operandi? Check the next page.
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