Six Tire Producers Face US$2.1 Million Fines

Translator

Editor

26 May 2014 20:22 WIB

ANTARA/M Agung Rajasa

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.

PINGIT ARIA



Indonesia's Exports Remain Competitive Amid Pandemic

23 Oktober 2020

Indonesia's Exports Remain Competitive Amid Pandemic

Indonesia's processing industry's exports from January to September amassed USD 94.36 billion.


Unemployment Rate May Hit 12.7mn by 2021: Bappenas

22 Juni 2020

Unemployment Rate May Hit 12.7mn by 2021: Bappenas

Bappenas head predicted that the open unemployment rate by 2021 may increase to 12.7 million, in line with the widespread impact of Covid-19 pandemic.


Manufacturing Industry Growth Decelerates

1 November 2019

Manufacturing Industry Growth Decelerates

The central statistics agency noted slowing production growths in large and medium manufacturing industries over the last two years.


JK: Only Manufacturing Industry Able to Advance Indonesia

28 Februari 2019

JK: Only Manufacturing Industry Able to Advance Indonesia

VP Jusuf Kalla or JK said the manufacturing industry has the potential to advance Indonesia because only the sector that could quickly boost people income.


Samsung to Open Factory in Indonesia This Year

24 Oktober 2018

Samsung to Open Factory in Indonesia This Year

Industry Minister Mohamad Suleman Hidayat confirmed that South
Korean electronics giant Samsung is expected to build a cell
phone factory in Indonesia


BMW Recalls 220,000 Cars

19 Oktober 2018

BMW Recalls 220,000 Cars

Millions of BMW cars will be recalled due to airbags
inefficiency. Repair will start in July but no accidents
reported related to airbags issues.


Tablets Seen Outselling PCs in 2015, Researcher Predicts

19 Oktober 2018

Tablets Seen Outselling PCs in 2015, Researcher Predicts

Consumers are increasingly switching to tablets due to tablets'
cheaper prices and smaller designs.


Detroit Files for Bankruptcy

19 Oktober 2018

Detroit Files for Bankruptcy

Detroit simply cannot raise enough revenue to meet its current
obligations, says Michigan Governor Rick Snyder.


Daihatsu Launches New Variants of Ayla

19 Oktober 2018

Daihatsu Launches New Variants of Ayla

The new variants introduce various new features and sold at a
relatively higher price.


Volvo, Sweden Government Integrate to Create Autonomous Cars

19 Oktober 2018

Volvo, Sweden Government Integrate to Create Autonomous Cars

The major-scale tryout is designed to meet the free-accident
target.