KPPU Finds Evidence of Alleged Cooking Oil Cartel Practices

TEMPO.CO, Jakarta - The Business Competition Supervisory Commission (KPPU) launched further investigations into the alleged cartel practices in cooking oil after finding evidence related to the sales or distribution of the commodity that led to the issue of business competition.

“Especially [the investigation into] alleged violation of Article 5 [on price-fixing], Article 11 [on cartel practice], and Article 19c [on market control through restrictions on the circulation of goods/services of Law No. 5 of 1999],” said the KPPU spokesman Deswin Nur to Tempo on Monday, March 28.

KPPU has investigated the issue of cooking oil for approximately two months after the price of the commodity soared simultaneously at the end of 2021. Deswin explained that on January 26, KPPU raised this case to the law enforcement process following the recommendation in the study conducted by the commissioners.

During the process, the investigation team summoned and examined 44 parties, consisting of producers, distributors, associations, government, packaging companies, and retail players.

The team managed to find one piece of evidence that strengthens the alleged violation of the law, in particular on the articles on price-fixing, cartel practices, and market domination. 

Deswin also said the investigation process would be carried out within a maximum period of 60 working days. If KPPU obtains at least two pieces of evidence, the law enforcement process can be continued to the preliminary examination by the Commission Council.

Through the trial process, KPPU may impose administrative sanctions in the form of fines up to 50 percent of the profits earned by the reported parties and fines up to 10 percent of the sales of cooking oil in markets.

Read: Police Chief Reviews Cooking Oil Stocks at Wonokromo Market, East Java

FRANCISCA CHRISTY ROSANA