Jakarta (26/8) – Indonesia Competition Commission (KPPU) issued a stipulation of conditional approval for the acquisition of PT Semen Grobogan shares by PT Indocement Tunggal Prakasa Tbk at the Commission Panel Session held today, 26 August 2024, at the KPPU Head Office. The hearing led by Chairman of the Panel Gopprera Panggabean, accompanied by Aru Armando and Budi Joyo Santoso as Members of the Panel, stated various requirements that must be fulfilled by PT Indocement Tunggal Prakasa Tbk. and PT Semen Grobogan as well as the implementation period. The determination is the first Comprehensive Assessment determination issued by KPPU based on KPPU Regulation No. 3 of 2023.

For information, KPPU conducted a comprehensive assessment of the PT Semen Grobogan share acquisition transaction by PT Indocement Tunggal Prakasa Tbk, because the transaction resulted in a significant increase in concentration in the relevant market. The KPPU Investigator, through various tests or measurements of the impact of the transaction in a comprehensive assessment, concluded that the transaction had the potential to result in monopolistic practices and/or unfair business competition, so that a Commission Panel Session was held on the results of the assessment, with Case register No. 12/KPPU-M/2024. The first hearing was held on 6 August 2024 to hear the Investigator's Comprehensive Assessment Report along with the proposed conditional approval to mitigate the impact of the transaction. PT Indocement Tunggal Prakasa Tbk and PT Semen Grobogan accepted the Comprehensive Assessment Report and expressed their ability to implement the conditional approval and the period of implementation of the conditional approval at the Panel Session on 19 August 2024.

Based on these developments, the Commission Panel issued a Stipulation concluding that the transaction of acquisition of shares of PT Semen Grobogan by PT Indocement Tunggal Prakarsa Tbk has the potential to result in monopolistic practices and/or unfair business competition under Article 28 paragraph (2) of Law Number 5 Year 1999, and stipulated the conditional approval and the period of implementation of the conditional approval of the transaction.