KPPU put sanction on LG International Corporation for Delay on Notification
(Jakarta, 26 April 2016) - KPPU Commissioner Council consist of Kamser Lumbanradja, Dr. Sukarmi, and Chandra Setiawan, PhD., have announced their decision on Case No. 16/KPPU-M/2015 on the Alleged Violation of Article 29.1 and 29.2 of the Law No. 5/1999, and Article 6 of the Government Regulation No. 57/2010 for delay on notification on the share acquisition of PT. Binsar Natorang Energy by LG International Corp. at KPPU Head Office in Jakarta.
It was proved that the combined asset and sales value of such acquisition (IDR 3.8 trillion asset and IDR 5.3 trillion sales) have met the mandatory notification threshold defined by regulation, which are IDR 2.5 trillion for combined asset, and IDR 5 trillion for combined sales. Therefore, based on such regulation, LG International Corp. must notify its business action to KPPU at the time where the merger approved. However, the evidence founded that LG International Corp. has failed to notify such acquisition to KPPU for 20 (twenty) days since the merger approved.
By such facts and information at the hearing, KPPU Commissioner Council decided to impose financial sanction to LG International Corp. amounting IDR 8 billion, and shall be submitted to the State Treasury as the fines collected from competition infringement. (DN)