Six Tire Producers Face US$2.1 Million Fines
26 May 2014 20:22 WIB
TEMPO.CO, Jakarta - Six major tire producers incorporated in the Indonesian Tire Manufacturers' Association (APBI) have been accused of cartel business practices and faced US$2.1 million fines.
The six manufacturers are Bridgestone Tire Indonesia, Sumi Rubber Indonesia, Gajah Tunggal, Goodyear Indonesia, Elang Perdana Tyre Industry and Industry Karet Deli. They also have allegedly been controlling marketing and prices of passenger cars.
"The first trial of the case was held at the Business Competition Supervisory Commission's (KPPU) office on May 20, 2014," KPPU's head of public relation and legal bureau, Muhammad Reza told Tempo on Monday, May 26, 2014.
The six companies were charged with Article 5 and 11 of Law No. 5/1999 on Monopoly and Unhealthy Business Competition, and each have to pay a US$2.1 million fine.
Reza said that the companies are suspected to have made deals in price fixing and controlling tire production and sales from 2009 until 2012. Reza revealed that the agreement was made during an APBI meeting. The meeting result stated that members of APBI were required to submit their production and sales reports, including their exports. The APBI also required its members to control supplies to create a stable price.
"The aim of the deal was to make tire prices uncompetitive," Reza said.
Chairman of the APBI Azis Pane, considered the allegation was lack of legal basis, saying that the KPPU has misunderstood the situation.