KPPU Probes Alleged Monopoly Practice by GoPay in Alfamart

Translator:

Editor:

Petir Garda Bhwana

  • Font:
  • Ukuran Font: - +
  • TEMPO.CO, JakartaThe Indonesia Competition Commission or ICC (KPPU) was set to conduct a thorough examination in light of alleged practices of unfair trading committed by e-wallet GoPay in all Alfamart outlets.

    "We will surely examine the issue, especially when there are reports from the public and business actors who are disadvantaged," the commission chairman Kurnia Toha said in his release, Monday, November 11.

    On October 23, 2019, minimarket operator Alfamart PT Sumber Alfaria Trijaya Tbk Marketing Director Ryan Alfons Kaloh wrote to e-wallet operator PT Visionet Internasional (OVO) CEO Harianto Gunawan about the termination of the partnership, in which noted that OVO top-up service was no longer available per November 12 in Alfamart.

    The decision was reportedly made as Alfamart’s concrete steps to meet GoPay requirements that obliged the minimarket to implement a single e-wallet payment throughout its 13,000 outlets across the country, blocking other e-wallets.

    In addition, Alfamart also granted exclusive rights to the provider to carry out various activities, including promotions and cashback in November 2019.

    Kurnia considered that giving exclusive rights to GoJek's subsidiary was contrary to the principles of business competition as it led to a monopoly.

    "In general, such actions are not in accordance with the principles of fair business competition. Especially, if the e-wallet has a dominant position, then it could be an abuse of a dominant position," Kurnia added.

    When met on another occasion, Executive Director of Indonesia's Center of Reform on Economics (Core), Piter Abdullah Redjalam, suggested that the government draft appropriate regulations concerning the use of e-wallets as not to confuse users and raise suspicion of monopolistic trade practices.

    Alfamart GM of Corporate Communications Nur Rachman strongly denied the accusation. Regarding the contract termination with OVO, he stated that it was a common thing in business and that it was previously settled with OVO.

    Nur Rachman went on to say that Alfamart collaborates with various e-money platforms besides GoPay, such as LinkAja, BCA Flazz and Mandiri E-money for payment, credit top-up until promotion events at 13,000 branches of the minimarket across the country.

    "We uphold company ethics and support fair business competition," he asserted.

    Meanwhile, Go-Pay Head of Corporate Communications Winny Triswandhani stated that her company continuously complies with government regulations and supports fair business competition, as well as encourages the emergence of a cashless society in Indonesia. 

    "We also committed to accelerate the non-cash penetration in Indonesia by creating easy transactions for the consumers and develop together with our business partners," she remarked.

    ARIANDONO

    Note:

    This article has been changed on Tuesday, November 12, 2019, at 13:53 Jakarta time. The change was made based on additional information from two sources; Alfamart and GoPay