PT DHARMA SATYA NUSANTARA, TBK. (DSNG) IS FINED AGAIN BY ICC
Jakarta (5/10) - Indonesia Competition Commission (ICC) has again imposed sanction on PT. Dharma Satya Nusantara, Tbk. (DSNG) for delayed notification of the acquisition of shares of PT. Tanjung Kreasi Parquet Industry (TEKA). ICC imposed an administrative penalty of IDR1,050,000,000.00 (one billion and fifty million rupiah) to DSNG in a Commission Panel Hearing the agenda of which was reading out the Decision today. The sanction is not the first one imposed on DSNG because it was previously fined for the same behavior on February 20, 2020 with regard to the delayed notification of the acquisition of PT. Agro Primary by DSNG.
The case under register number 31/KPPU-M/2020 had its origin from a pre-investigation of the delayed notification of the acquisition of shares of PT. Agro Pratama which was also conducted by DSNG. This was followed up with a cooperative action and at the initiative of DSNG in submitting the delayed notification of the acquisition of several company shares, including of PT Tanjung Kreasi Parquet Industry or TEKA (the case a quo), a company engaged in the field of wood flooring production.
DSNG has been known to have conducted some stages to acquire TEKA since 2011 in the hearing proceedings. The transfer of control with a legally effective date of July 6, 2011 took place in the second transaction, namely the date of receipt of the notification of the amendment to the articles of association and change to the company data by the Ministry of Law and Human Rights of the Republic of Indonesia. Therefore, DNSG should have submitted the notification of TEKA acquisition to KPPU by no later than August 16, 2011. However, DSNG just submitted the notification on November 26, 2019.
Based on the facts, assessments, and analysis conducted, the Commission Panel decides that DSNG has been legally and convincingly proven to have violated Article 29 of Law No. 5 of 1999 jo. Article 55 of Government Regulation (PP) No. 57 of 2010. In making its decision, the Commission Panel has also taken the alleviating matters for DSNG into account, among other things, its good faith in informing and acknowledging the delayed notification of the acquisition of TEKA as well as the compliance and cooperative actions during the hearing proceedings.
The Commission Panel in its decision read out finally has sentenced DSNG to pay for a penalty of IDR1,050,000,000.00 (one billion and fifty million rupiah) and has ordered the payment for the penalty by remitting it to the State Treasury by no later than 30 (thirty) days after ICC's decision has had a permanent legal force (inkracht). If DSNG takes a legal remedy by lodging an objection to the decision, the Commission Panel also orders DSNG 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 acceptance of the Notification of Decision.