Jakarta (31/5) - Indonesia Competition Commission (ICC) has imposed sanction on PT. Lestari Gemilang Intisawit (PT. LGI) for the delayed notification of the acquisition of shares of PT. Nabati Agro Subur (PT. NAS). On the basis of the said violation, the Commission Panel in its Commission Panel Hearing with the agenda of the Reading Out of Decision today imposed a penalty worth IDR1,000,000,000 (one billion rupiah) on PT. LGI.

This case under register number 05/KPPU-M/2022 had its origin from a corporate action taken by PT. LGI in acquiring the shares of PT. NAS, resulting in a change of controlling party on July 15, 2015. The acquisition of 2,375 (two thousand three hundred and seventy-five) shares or equivalent to 95% (ninety-five percent) shares of PT. NAS by PT. LGI has a transaction value of IDR2,593,460,000 (two billion five hundred and ninety-three million four hundred and sixty thousand rupiah) .

The Commission Panel took into account alleviating matters of PT. LGI that had admitted its delayed notification to the Commission due to its ignorance of the reporting obligation. In addition to the above, the admission of PT. LGI was proven by the attitude of PT. LGI during the hearings that accepted the arguments in the Delayed Notification Report, PT. LGI was cooperative during the hearing proceedings as proved by its constant presence in the hearings. PT. LGI had submitted the requested documents during the Commission Panel Hearings and had never been declared guilty by virtue of a decision that has had a permanent legal force (inkracht) for violating Law Number 5 of 1999 (Law 5/99).

Therefore, based on mandatory notification provisions and various facts in the hearings, the Commission Panel decided that PT. LGI had been legally and convincingly proven to have violated Article 29 of Law 5/99 in conjunction with (jo.) Article 5 Government Regulation No. 57/2010 and sentenced PT. LGI to pay for a penalty of IDR1,000,000,000 (one billion rupiah) and remit it into the state treasury by no later than 30 (thirty) days after the Decision has had a permanent legal force (inkracht).

The Commission Panel in its commands of the decision has ordered PT. LGI to pay for the penalty by not later than 30 (thirty) days after this Decision has a permanent legal force (inkracht). Delay in the payment of the penalty can be subject to a delayed penalty of 2% (two percent) per month of the value of the penalty. If PT. LGI lodges an Objection, then it is obligated to submit a bank guarantee of 20% (twenty percent) of the value of the penalty to ICC by no later than 14 (fourteen) working days following the receipt of the Decision.