Peruri guilty of monopoly: KPPU

The Jakarta Post, Jakarta

The Business Competition Supervisory Agency (KPPU) ruled on Wednesday that state-owned printing company Perum Peruri and privately owned PT Pura Nusapersada were guilty of violating Law No.5/1999 on monopolies and unfair competition.

KPPU member Mohammad Iqbal, who led the investigation, said that both companies were found guilty of engaging in a monopoly with regard to the provision of holograms on excise stamps.

"All this time, the provision of holograms has been limited to just one player, PT Pura Nusapersada, due to a contract signed in 1995 by the two companies, with no expiration date," said Iqbal.

Iqbal, who was accompanied by fellow members Faisal Basri and Tadjuddin Noersaid, said that, currently, there were five other firms in Indonesia that could also produce holograms for the same purpose.

"The contract has led to situation that doesn't support fair competition because it has produced a barrier to the entry of other business players wishing to provide holograms for excise stamps," he added.

Therefore, the KPPU ordered both companies to annul the contract and instructed Perum Peruri to hold an open tender for the provision of holograms.

"Perum Peruri must hold the tender as soon as possible to avoid any possible disruption to the supply of holograms for fiscal year 2005," said Iqbal.