NGO, cement company face possible court battle

Arya Abhiseka, The Jakarta Post, Jakarta

Non-governmental organization Monopoly Watch, and Lubis, Santosa and Maulana lawyers could end up in a civil lawsuit over the former's refusal to retract its report of complaint to the Business Competition Supervisory Commission (KPPU) that four foreign cement companies in Indonesia were operating as a cartel.

Lubis lawyers, which represents Cemex Indonesia, had earlier petitioned Monopoly Watch to withdraw its complaint and to make a public apology for defamation or face a lawsuit.

However, Monopoly Watch persisted with its report to the commission, saying it was ready to meet Lubis in court.

Meanwhile, according to executive of the commission M. Nawir Messi, KPPU ruled out a possible investigation, saying that the report lacked evidence. However, it was put on the commission's watchlist.

Monopoly Watch filed the report with the commission, alleging possible cartel-like operations by the four foreign cement companies: Mexico's Cemex SA de CV, Heidelberger of Germany, Holcim of Switzerland and Lafarge of France.

"We have every right to report any violation of fair business competition law to the commission," said secretary of the Monopoly Watch executive committee Samuel Nitisaputra.

He insisted that the report was only a basis for the commission to study and thus carry out an investigation into allegations of cartel-like practices.

In a cartel, a group of businesses controls prices by regulating the production and marketing of a product.

Today, Cemex Indonesia owns over 35 percent of publicly listed PT Semen Gresik, a cement group based in Surabaya with a capacity of 17.3 million metric tons.

Hidelberger controls PT Indocement in Jakarta, with a total capacity of 15.7 million tons, Holcim controls PT Semen Cibinong (9.6 million tons) and Lafarge owns PT Semen Andalas in Aceh (2.6 million tons).