ICC IMPOSES A FINE OF IDR1 BILLION ON PT. MITRA KELUARGA KARYASEHAT, TBK., FOR LATE NOTIFICATION
Jakarta (24/10) – Indonesia Competition Commission (ICC) imposed a sanction in the form of fine on PT. Mitra Keluarga Karyasehat Tbk (PT. MKK), amounting to IRD1,000,000,000 (one billion rupiah) for tardy notification of the acquisition transaction conducted over PT. Bina Husada Gemilang (PT. BHG). The said decision was read out in a Commission Panel Hearing for the Reading Out of Decision of Case No. 12/KPPU-M/2022 at the Head Office of ICC in Jakarta today.
This case had its origin from an investigation of late notification of the acquisition of shares conducted by PT. MKK of 80% shares of PT. BHG on January 31, 2019. The said transaction has resulted in a change of control over PT BHG. PT MKK constitutes a public company engaged in the field of public hospital health services, meanwhile PT. BHG is engaged in the same line of business as well.
The Commission Panel found in the course of the Commission Panel proceedings that the acquisition of shares of PT. BHG by PT. MKK had been legally effective as from February 1, 2019, consequently, PT. MKK was obligated to notify ICC by no later than March 18, 2019. In its reality, the notification was given on February 25, 2021, in excess of the 30-day limit as from the legally coming into effect legal date of the transaction.
Based on the aforementioned fact, the Commission Panel decided that PT. MKK had been proven legally and convincingly in violation of Article 29 of Law No. 5 of 1999 in conjunction with Article 5 of Government Regulation No. 57 of 2010, and had imposed a fine of IDR1,000,000,000 (one billion rupiah) that had to be remitted to the State Treasury as a deposit of revenue deriving from the fine for for the breaches in the field of competition. The payment of the fine must be made by no later than 30 (thirty) days since the Decision has had a permanent legal force.