TEMPO.CO, Jakarta-The Business Competition Supervisory Commission (KPPU) has ordered LG International Corp. to pay a fine of Rp8 billion. The South Korean electronics manufacturer was declared guilty not reporting the takeover of PT Binsar Natorang Energy shares on time.
"The fine must be deposited to the state treasury," Kamser Lumbanraja KPPU's panel of judges chief, said on Wednesday, April 27.
KPPU's panel of judges on Tuesday declared the defendant guilty of violating Law No. 5/1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition.
Kamser mention the combined assets value in the takeover of Binsar Natorang Energy's shares by LG reached Rp3.82 trillion. With Binsar's sales turnover valuing at Rp5.31 trillion, the shares takeover value exceeded the threshold for an assessment by the KPPU.
According to regulations, an acquisition will be assessed by the KPPU if the combined assets of the transaction exceeds Rp2.5 trillion, or if the combined turnover exceeds or Rp5 trillion.
Investigators also discovered that LG failed to notify on time to the KPPU about the merger, consolidation and the acquisition.
According to Kamser, LG was late to inform the shares takeover by 20 working days.
LG's representatives in Indonesia were not available for comments and have not made any statement about the matter yet.
Binsar Natorang Energy is a developer of the Hasang hydro power plant in Toba Samosir, North Sumatra. The power plant supplies electricity to PT PLN in the province.
OLN and the private developer signed an agreement for the purchase of electricity of 622 MW for US$ 1.71 billion for five projects, including the Hasang hydropower plant.
PINGIT ARIA
