KPPU monitors food giants Indofood, Bogasari<\/p>\n
JAKARTA (JP): The Indonesian antimonopoly watchdog said it was
\nlooking into alleged unfair business practices of food giants PT
\nBogasari Flour Mills and PT Indofood Sukses Makmur, and would
\nannounce its findings in two weeks.<\/p>\n
Chairman of the Business Competition Supervisory Committee
\n(KPPU) Mohammad Iqbal said on Wednesday the two companies were
\ncurrently under the scrutiny of the group's special team led by
\nSyamsul Maarif, a member of the 11-member commission.<\/p>\n
\"If the team finds indications of unfair business practices,
\nwe will look further into the case by calling for a hearing, and
\neven conduct a direct investigation,\" he said after KPPU's
\nmeeting with Vice President Hamzah Haz.<\/p>\n
Iqbal said Bogasari and Indofood were being monitored for
\ntheir suspected violations of the 1999 Antimonopoly Law,
\nincluding controlling the whole chain of production from
\nproviding raw material to the processing of food.<\/p>\n
They are also being monitored for controlling a majority
\nsegment of the market, which according to Iqbal, is most
\nsusceptible to unfair business practices.<\/p>\n
\"For example we will investigate whether they have set up
\nentry barriers for newcomers to the industry. This is against the
\nlaw,\" he said.<\/p>\n
Bogasari controls 90 percent of Indonesia's wheat flour
\nmarket, while the publicly listed Indofood controls 90 percent of
\nthe country's instant noodles market.<\/p>\n
The commission was established in June last year by former
\npresident Abdurrahman Wahid following the enactment of the
\nAntimonopoly and Unfair Competition Law No. 5\/1999.<\/p>\n
The commission has the right to investigate and sanction
\nbusinesses that are suspected of unfair practices.<\/p>\n
Early this year, KPPU announced that it would investigate
\neight companies controlling more than 50 percent of the market
\nshare of their respective products.<\/p>\n
Besides Indofood and Bogasari, the other six companies are PT
\nInti Boga Sejahtera, which controls 60 percent of the country's
\ncooking oil market; PT Aqua Golden Mississippi, which holds an 83
\npercent market share in the mineral water market; PT Unilever
\nIndonesia, which holds a 58 percent share in the detergent
\nmarket; PT Santos Jaya Abadi, which controls 50 percent of
\nIndonesia's instant coffee market; PT Asahimas Flat Glass, which
\ncontrols 65 percent of Indonesia's glass market; and state oil
\nand gas company Pertamina, which controls 60 percent of the
\ncountry's lubricating oil.<\/p>\n
Iqbal reported on Wednesday KPPU's progress, after one year of
\nits establishment, to the Vice President.<\/p>\n
He was accompanied by KPPU deputy chairman Pande Radja
\nSilalahi, and members Bambang P. Adiwiyoto, Tadjuddin Noer Said
\nand Syamsul Maarif. (tnt)<\/p>",
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"sponsor": "Okusi Associates",
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