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Minister of Finance and KPPU to Fight Cartel in Commodity Food

03 March 2017
News Indonesia

KPPU signed a memorandum of understanding with the Ministry of Finance to rule about prevention, enforcement, and compliance on taxation and competition in Jakarta. The signing was made by KPPU Chairman, Syarkawi Rauf, and Minister of Finance, H.E., Sri Mulyani back on 2 March 2017. The signing was observed by top level officials of each institution.

Syarkawi stressed that KPPU is honored to have a cooperation with the Ministry of Finance, and hoped it will improve its performance through exchange of data and information. “Many cases by KPPU involved engagement in custom and taxation”, said Syarkawi.

Moveover, in 2017, KPPU set its focus on food sector, energy, and public procurement, where the three areas are interacted. “In the future, KPPU will focus on foods like poultry, cattle meat, sugar, and procurement. Complete engagement by KPPU and Ministry of Finance, strengthened by Ministry of Trade may eradicate food cartel in Indonesia. That’s included procurements free from collusion”, explained Syarkawi.

Minister Mulyani resounded that the cooperation was made as an implementation of direction by the Indonesian President, which is to observe the policy implementation of foods in Indonesia. “We deeply hoped that Indonesian commodity foods can be sustained, like rice, sugar, poultry, and cattle meat. Selling price by producer shall fair, inline with purchasing power by the society. So that, the market price at the society can be efficient”.

She also add that, it is not rare that food commodity importer is tax avoidance. “Ministry of Finance will not limit the margin at the producers, as it just that a high profit will trigger cartel in commodity food. It shall not be done, between producers and consumers, there shall be a mutual benefit. Most of the producer with high margin, is complied less to its tax obligation”.

Minister of Trade, H.E., Enggartiasto Lukita, whom attended the ceremony, welcomed the cooperation between KPPU and Ministry of Finance. “In the future, the government really hoped the non-existence of price control by big enterprises, which will damage the society”.