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Supreme Court confirms Decision of KPPU on Cartel in ScooterMatic

15 May 2019
News Indonesia

The Supreme Court through its official website states that the cassation petition on the Decision of North Jakarta District Court No. 163/Pdt.G/KPPU/2017/PN.Jkt.Utr., dated December 5, 2017 confirmed the Decision of KPPU by reported parties (I. PT. Astra Honda Motor, II. PT. Yamaha Indonesia Motor Manufacturing) as overruled.  This means that the District Court and the Supreme Court confirmed the decision of KPPU with regards to the Alleged Violation of Law Number 5 Year 1999 about Anti Monopoly Practices and Unfair Business Competition in the Motorcycle Industry of the scootermatic class110-125 CC. Upon the rejection of the petition, the Petitioners toke an extraordinary remedy through Judicial Review by the Supreme Court, consequently, Decision of KPPU Number 04/KPPU-I/2016 has had a permanent legal force (inkracht).

Previously, KPPU decided that 2 (two) business actors in the Motorcycle Industry of the Automatic Scooter Type, namely PT. Yamana Indonesia Motor Manufacturing (Reported Party I) and PT. Astra Honda Motor (Reported Party II) legally and convincingly had violated Article 5 paragraph (1) of Law No. 5 Year 1999 regarding Price Fixing. The Commissioners’ Council considered the Behaviors of the Reported Parties in 3 matters, namely as follows:

  1. Regarding the Meeting in the Golf Course;
  2. Regarding the Email dated April 28, 2014;
  3. Regarding the Email dated January 10, 2015.

Based on the assessment of the 3 matters above and on the hearing of facts, an email from Witness Mr. Yutaka Terada dated January 10, 2015 who at that time served as a Marketing Director of Reported Party I by using email address was sent to Dyonisius Beti as Vice President Director of Reported Party I, The Commissioners’ Council considered that the email constituted an official communication conducted between top level management of Reported Party I. Therefore, in light of the capacity of the sender and the recipient of the email as well as the media used namely the official email of the company, then The Commissioners’ Council did not immediately disregard the said fact as an instrument of evidence. In the decision, the Commissioners’ Council imposed penalties on the Reported Party I amounting to IDR25,000,000,000 (Twenty-Five Billion Rupiah) and on Reported Party II amounting to IDR22,500,000,000 (Twenty-Two Billion Five Hundred Million Rupiah) that had to be remitted to the state treasury.

At the moment, KPPU is awaiting the Copy of the Decision from the Supreme Court although based on the information on cases in the website of the Supreme Court, the judicial verdict has been declared since April 23, 2019. The confirmation of the Decision substantially proves that the Supreme Court agrees to the due process of law in the examination proceedings and the application of Article 5 (Price Fixing) that has been conducted by KPPU. KPPU gives its highest appreciation to this Decision of the Supreme Court and this serves as a valuable driving force for KPPU so as to keep on improving fair business competition as mandated in the law.


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