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2022, Indonesia, Anticompetitive Agreeement

Yogyakarta (1/11) - Indonesia Competition Commission (ICC) held a Preliminary Examination Commission Panel of Case Number 14/KPPU-I/2022 concerning Alleged Violation of Article 15 paragraph (2) of Law Number 5 of 1999 regarding the Sales of Bulk Cooking Oil in Sleman Regency, Yogyakarta Special Region conducted by PT Lestari Berkah Sejati (PT LBS) at the Regional Office VII ICC Yogyakarta today. The hearing constituted the first Preliminary Examination of the said case with the agenda of the reading out of the Alleged Breach Report (LDP) by the Prosecuting Investigator of ICC. During the hearing, PT LBS was present and accompanied by its legal counsel from the Law Office of Wahyu Priyanka NP & Partners.

Based on the Alleged Breach Report, ICC found the behavior of PT LBS that made a condition for the purchase of bulk cooking oil for its customers in March 2022. Such condition stipulates that every purchase of bulk cooking oil must also purchase other products, such as Segitiga Biru brand flour or Cakra Kembar brand flour or Rose Brand rice flour, with a ratio of 1:1 (one to one) and the provisions of a minimum total purchase of IDR400,000. (four hundred thousand rupiah) in one transaction.

The need for bulk cooking oil in Sleman Regency area reached approximately 770,950.58 kgs in March 2022. Meanwhile, the supply of bulk cooking oil in the same period was roughly 415,680 kgs. Around 73% of the supply (or around 304,920 kgs) came from PT LBS, consequently, PT LBS could be deemed to almost control the entire supply of bulk cooking oil in the region and in such period, if not including a dearth of supply of 355,270.58 kgs. Due to the behavior of PT LBS, the supply of bulk cooking oil in Sleman Regency was limited. PT LBS as the largest supplier did not provide choices for consumers besides accepting the stipulated purchase requirements for bulk cooking oil. In addition, other goods purchased by consumers were not as much as bulk cooking oil needs, thus, such goods become unused and were sold for low prices.

The Commission Panel gave the opportunity to the Reported Party to make behavioral changes following the reading out and/or the conveying of the Alleged Breach Report to the Reported Party in the course of the Preliminary Examination. The opportunity for Behavioral Changes were given if the Reported Party agreed to make behavioral changes as set forth in the Behavioral Change Integrity Pact as signed by the Reported Party. As for the entire Preliminary Examination proceedings, they will be conducted within a maximum period of 30 (thirty) days, as from the first hearing that was attended by the Reported Party.