KPPU Names Garlic Cartel Suspects

TEMPO.CO, Jakarta - The Business Competition Supervisory Commission (KPPU) tried 22 parties accused of garlic cartel practices. KPPU Prosecutors' Investigator, Muhammad Nur Rofik, said that the defendants are charged with violating three articles in Law No.5/1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition.

"The importers are suspected of coordinating garlic prices and shipping time to play with market prices," he said during the hearing, Wednesday, July 24.

A total of 19 import companies accused of carter are divided into three affiliated groups. The first group consists of 13 companies, including CV Bintang, CV Karya Pratama, PT Lika Dayatama, PT Global Sarana Perkasa and PT Tunas Sumber Rezeki. The group allegedly controlled 56.68 percent of the garlic supply from November 2012 to February 2013 with a volume of 23.51 million kilograms.

The second group consists of three companies, CV Agro Nusa Permai, CV Kuda Mas and CV Mulia Agro Lestari. They controlled 5.51 million kilograms or 14.03 percent. The third group consists of PT Lintas Buana Unggul, PT Prima Nusa Lentera Agung, dan PT Tunas Utama Sari Perkasa. They controlled 10.67 percent of supply or 3.21 million kilograms.

In addition to importers, the KPPU also alleges government agencies; the Director General of Foreign Trade, The Trade Ministry and its Minister Gita Wirjawan, and the Agriculture Quarantine Agency. They are being charged with foul play when issuing the extension of imports letter of approval (SPI) that was non-transparent and discriminatory.

Trade Minister Gita Wirjawan said he had only just found out about him and his ministry being accused of practicing cartel. He said he would discuss the matter with the Commission.

BERNADETTE CHRISTINA | PINGIT ARIA